Imports of goods from China continue to grow, and more and more companies are taking advantage of international trade. It's no secret that China is the largest exporter in all directions. So, why not take advantage of this, especially for cheaper products - ones where quality is not the most important thing. And you can save money on them.
Just whether it is worth it to rely solely on imports from Asia? Or is it better to work with a European supplier?
In this article, using the example of steel pole bases, we will discuss what are the risks of importing from China. What to look for when planning to import goods? In what situations and with what goods should you consider finding a European manufacturer?
1. product price vs. quality of goods
It has not been known for a long time that the biggest advantage of imports from China is price. Low labor costs, mass production, and a relaxed approach to being inspired by the ideas of others enable Chinese manufacturers to offer goods at very competitive prices. But what about quality? After all, low price often goes hand in hand with low quality.
And here comes the problem - the low price, is mainly due to savings on the materials from which the product is made or inferior, much shorter production processes. When deciding on such a product, we have to expect that its durability will be very poor. The product will wear out more easily and quickly, which is another problem for the entrepreneur - customer complaints. And the quality of Chinese products has already passed into legend....
The case is usually different for European manufacturers. Despite higher production costs and materials, they are able to offer a solid product at an affordable price.
Price of Chinese products - comparison with the Polish counterpart on a real example
Take for comparison, for example. steel driven anchor. The product produced in Poland is made of higher quality steel, which does not crack or bend during driving. The dimensions are maintained, the weld connecting the elements is linear, not spot, the galvanized layer has a minimum of 60 microns.
The Chinese equivalent is sometimes made of steel of such poor quality that it often comes bent and warped even before being driven into the ground. With dimensions it varies - as it goes so it goes. The finish often leaves much to be desired. The edges are sharp, it is easy to cut yourself. Welding is symbolic, the parts are poorly welded. The galvanizing layer is thin and laid so inaccurately that Chinese anchors begin to corrode already in sea transport. Let's not kid ourselves that quality control of goods in Chinese factories is as strict as in Europe.
Of course, in China you can also buy products made accurately and from good quality steel. They can be subjected to far more demanding quality control. In that case, however, you have to expect a much higher price. Then the biggest plus of importing from China comes into question.
2 Transport and logistics and transport safety
Importing products from Asia raises various logistical issues, i.e. on-time delivery and transportation safety. Shipments from China to Poland take quite a long time. Air transportation is fast, but clearly the most expensive and limited in quantity. Shipping by rail or sea is cheaper, but you have to expect the goods to be with you in a few weeks or a few months. Shipping by ship comes out by far the cheapest, but it also has serious drawbacks. And it's not just about long lead times. First of all, in order to make the purchase really profitable you need to order a large quantity, and thus freeze cash in the goods. In addition, the unstable political situation, tensions in EU-China relations can cause delays. Sometimes these are due to increased traffic at ports, lack of access to containers. There are also random and more complicated situations, such as a stuck container ship in the Suez Canal, pirate attacks, fires, difficult weather conditions.
The very long distance and time exposes the goods and even entire containers to mechanical damage, especially during transshipment. Thefts occur. Sea transportation due to the humid, saline environment and changeable weather can generate damage to protective coatings and corrosion of steel components.
Of course, it's not that the goods always arrive damaged. What condition an order arrives in is also influenced by how it is packed and secured. Arguably, this can be arranged with the contractor, but in the case of China there is no guarantee that he will comply, or whether such an option is even viable. One sure solution is to purchase additional transportation insurance, which can minimize potential losses from damages.
Timeliness, safety and cost of transportation from Asia and within Europe - a comparison
Transportation within Europe is a much more pleasant undertaking. The conditions for transporting goods are incomparably better than from the Far East. You do not need to order goods several months in advance. From countries located in Central Europe, such as Poland, the delivery is able to reach any place on our continent in less than 48 hours! Compared to, for example, several weeks it makes a difference. Customs clearance of goods and customs agents' fees are also gone - always a potential sensitive moment of any delivery from China.
By ordering in Europe, the short delivery time allows for more frequent orders, according to current needs. There is no need to freeze funds in surplus goods.
Also the conditions in which the goods are transported are not insignificant. When importing from China, we are often left on our own in case of any problems and unforeseen situations. In Europe there is a radically different approach to complaints and liability. As a last resort, we are always protected by the law, which is realistically respected.
Cost and delivery time from China - shipping methods: advantages and disadvantages
Shipping from China is profitable only with economies of scale - a large order, is a large one-time expense. The long lead time and possible complications also have to be included in the price of the product. At the other extreme we have air transport: fast, efficient and very expensive. It only calculates for relatively light and small orders of goods with a high unit price. Until a certain point, the compromise between lead time and transportation costs was rail transportation. Unfortunately, the changing geopolitical situation, the unpredictability of Russia and Belarus, the war in Ukraine, and the unstable situation in Central and West Asia have greatly complicated the process.
In summary, we do not demonize shipping from China, but the buyer must be aware of all factors and possible risks. The total cost of importing products from Asia can go far beyond the price alone. Often it is better to decide to find a contractor among European manufacturers. But this is always an individual decision based on profit and cost analysis.
3. compliance with European regulations - required certificates and approvals
Living in Europe, we are accustomed to strict regulation by standards and regulations of every aspect of life, including production and trade. It has become so obvious to us that we don't pay attention to it. When importing goods from China, the situation is different. This is partly due to differences in mentality and approach to business. Colloquially speaking, if you hit a problem in our country, in order to move on, you solve it - in China it is often just avoided.
Do goods imported from China meet European standards?
Not all Chinese products have the required approvals and certificates. The absence of these documents can mean that the product does not meet European standards. This can be dangerous for users and cause legal trouble for importers. Even the lack of a basic CE certificate is problematic, not to mention more specialized approvals.
In some cases, it may turn out that the certificates and approvals held do not actually exist. Therefore, it is important to carefully check the manufacturer, whose product quality may be impeccable, but will not have the documents required in Europe for it, confirming the standards met. It's hard to verify this yourself, so it's best to use specialized agencies with agents on the ground. Audits, however, are a costly solution and don't guarantee 100% peace of mind either.
European manufacturers, by contrast, are accustomed to these requirements, subjecting their products to testing by certification companies. It is they who, through a series of tests, e.g. strength, load force, etc., give an opinion. In this way, the buyer is assured that the goods are safe, and that the certificate was created in a laboratory, not in a graphics program.
Of course, you cannot stigmatize all Chinese manufacturers. By finding a reliable and honest manufacturer, you will be able to trade these goods in Europe with a clear conscience. However, products from reliable and proven Chinese companies can also be correspondingly more expensive, making imports more expensive. You have to ask yourself whether the risk is worth it? Maybe it's better to trust a European company that has been smoothly navigating the meanders of EU regulations for years?
4. individual projects - ease of communication and speed of implementation
A lot of European companies have high expectations and require a personalized approach. However, creating personalized solutions is quite problematic when dealing with China.
It is not easy to outsource the production of individual products to Chinese companies. Once a manufacturer undertakes it, you have to place an order on a large scale, and the waiting time is usually very long. Not only that, no one from the Chinese engineers is likely to offer a discussion of the design, to help, to advise another solution. To put it simply - what design they receive, such goods they will make. Communication itself is not simple either. It's not even about the language barrier anymore, but mentality and customs. You also have to reckon with the fact that your project, on which you have spent a lot of time and expenses, may become an "inspiration" for Chinese engineers. Well, China is not famous for its exaggerated creativity and special devotion to intellectual property rights....
In Europe, on the other hand, there are companies that even pride themselves on having a great design and engineering department, and are willing to work with you. Their designers, together with you, can design a product from scratch, based only on your expectations and guidelines, rather than a technical design. Creating personalized products will not be a road through an ordeal.
In addition, in Europe you are protected by law, and therefore you are assured that no one will misappropriate your idea and start producing identical things without your permission. And even if they do, ownership in Europe is a fundamental value and you can assert your rights in court. It is with such manufacturers that it is worth working with, making agreements. They will help to dispel any doubts about the product.
5. warranty and marketing support
Marketing and warranty support in the case of goods imported from China, is at a similar level to support for individual projects - average at best.
Complaints
It's not that Asian manufacturers don't provide warranties at all. The problem lies elsewhere - in enforcing your rights. The claims process takes a long time, is complicated, and it can be extremely difficult to get a satisfactory solution. There is no need to delude ourselves that we will meet there with the typical pro-customer approach of European countries. Of course, one cannot generalize, and we will also find reliable Chinese suppliers who will rise to the occasion in a crisis situation, but unfortunately this is not the norm.
When buying in Europe, we are dealing with a completely different philosophy and approach to business. Relationships with customers are very important, and most often any complaints are handled quickly and in favor of the buyer. This approach is partly a matter of mentality and partly a matter of regulations. The law supports the buyer and protects him from unfair practices. Complaints in Europe are supposed to be simplified and expedited as much as possible by design.
Marketing support
Marketing materials are a very welcome bonus when ordering goods. For European companies, we can usually count on content in the form of studio photos, instructional videos, descriptions, blog articles, translated user manuals and precise technical drawings.
When importing from China, the situation is no longer so colorful. Marketing materials such as flyers or instructions, if there are any, are at best in English-language versions. If we can count on pictures or videos, they are often inadequate for a European customer. And this is not the result of ill will, but rather a very different sense of aesthetics in Asian countries.
6. level of complexity of procurement activities
In this section, we trace the ordering process for Asian manufacturers? Sound complicated?
And so it will be. First we need to find a company that will make the order for us. This is not easy. Because of the language barrier, navigating the Chinese Internet requires a lot of time, focus and patience. Contacts for the right company are hard to come by, and by searching on our own we can't be sure that the chosen company is trustworthy. Verification of suppliers is a must! Those larger and more open to the West factories often already have agreements with European importers and it will be hard to knock directly. Often we won't even get a response to our inquiries.
The solution is to use intermediary agencies for trade between Europe and China. Here, however, you must expect to sign a contract. It costs a lot, plus it may not fully protect your interests. It's important to read it carefully - it's best to consult a lawyer. Now you need to be patient, because it will take a lot of time. The agency must find a manufacturer according to your price and quality requirements, which you will accept. Then you need to order samples of goods - after all, you won't place an order based on pretty pictures. If the samples meet your expectations you arrange all formal and financial issues. As long as everything goes off without a hitch, all that remains is to arrange transportation and wait for delivery for weeks. As you can well guess, this process is neither easy nor quick.
How is the order in Europe, and even more so in Poland, we probably do not need to explain in detail?
Direct contact, quick arrangement of all details, smaller MOQs and the ability to order smaller quantities to suit your current needs. You can thoroughly screen your contractor, so the chance of ending up with an untrustworthy company is incomparably less than with China. On top of that, we get away from all the customs clearance of products, and this is always a certain unknown when buying goods in Asia.
We are not saying that ordering goods from China is bad, difficult and disadvantageous. Often, despite all the obstacles and risks, imported products can be cheaper than their European counterparts. The purchase price of goods, especially for large orders, is attractive enough to make importing profitable - even considering the complexity of the process. However, it is worth considering whether buying the same product in Europe will be more advantageous. You have to weigh all the pros and cons. There are industries where we are, so to speak, doomed to import from Asia, but some areas such as the industry of steel components and materials production stands at a high level in Poland, and the price/quality ratio is sensational.
Not just the lowest prices - why is buying in Europe often a better option than importing from Asia?
- definitely shorter waiting time
- easier cooperation
- direct communication
- usually higher quality of product manufacturing
- certified goods
- lower MOQ
- faster implementation
- easier access to service and warranty
- access to marketing materials
- supporting the local economy
