What Customer Expectations Do Chinese Suppliers Ignore in International Trade

To the surprise of many of my customers, I used to be a buyer, but now I work as an export trader for my foreign buyers.

In my opinion, purchasing and selling jobs are not diametrically opposed. On the other hand, people in these two positions can exchange ideas and learn from one another. My early experience as a buyer gave me a better understanding of what foreign buyers care about, where they pay the most attention, and what types of sales make them feel "safe".

Last week, during a team brainstorming session, we discussed some cases of communication with foreign customers and tried to put ourselves in the shoes of foreign buyers, analyzing and understanding what details foreign buyers will care about, which are frequently overlooked by Chinese promotional items suppliers during the trading process.

I summary up the following stories for my team, and hope they will be useful to you in selecting the right promotion suppliers.

I always introduce a concept of service industry when training my colleagues, because factories belong to the secondary industry as they manufacture goods, whereas our roles in trading belong to the tertiary industry, i.e. the service industry, including trading from factories and trading from a trader company.

As we are of the tertiary industry and stand at service of our customers, when we execute an international deal of goods exchange, there are services involved to a large extent throughout the whole business process, from initial inquiry to final delivery.

When asked about the advantages of my company over other suppliers, my customers often respond, “You are more professional and provide excellent service. Despite the fact that you are a trading company, I prefer to work with you, rather than the factories.”

So, aside from the goods, What are the things that customers really want, but don’t have?

Packing

A customer once told us that while Chinese enterprises are paying more attention to quality and delivering satisfactory products, a few of them often ignore one critical issue: packaging!

The customer then showed me the photos of the consignment imported from China, which is littered and crooked, with some trays scattered, whereas trays from Europe and Japan are neat and tidy, with no deformation or displacement after multiple times of transshipment.

At a glance, I understand the customer's need, and he wants to ensure that we can do the same good job as others. I reply, “there are two main causes of this problem: manual wrapping is too tight and belts are too loosely fastened. And, because we have wrapping and packing machines, these issues will never occur. Of course, packing at the same level as Japanese and European may be difficult, but we are working on it. ”

Packaging, as an essential part of the goods, is a process of how the package is handled clean and tidy, and whether the supports are firm during rough transportation, both of which will have a direct impact on the overall quality of the products as well as the cost of transportation.

For example, when handling the packing of heavy mechanical products, special attention must be paid to strong wooden cases, reinforced supports, risk of collision, or scratches during transportation.

Some factories include written materials into the packages, such as certificates and quality inspection materials, but the customers are unaware of what they receive inside the cartons, and the workers simply feed the cartons onto the customer's production line with these paper materials, causing the troubles and, inevitably, customer complaints.

Many customers have told me that their employees do not want to use the goods of certain factories because they are careless and unprofessional in their packing and cause them a lot of trouble.

Document operation

In addition, document operation is a major concern.

A few customers have told me that one of their suppliers’ products is of high quality, and its sales are professional, but its document operation sucks, with frequent problems. “We really don't want to work with them, and everyone on our operation team advised the boss to switch suppliers. If it's just trouble, the boss may not be willing to change, but if there is a loss or complaint, change it! “

For example, in the case of poor documentation, their documents are always incorrect, and the bills of lading are always late, whereas other suppliers' operation runs smoothly. It seems trouble always comes along when both parties start working together, asking for L/C revisions, such as the expiration date in China, no “clean on board” clause, and the non-negotiation clause to be removed, just in order to avoid the risks on the beneficiary side, which are really unnecessary.

Bremen, there are always bank fees on every L/C revision, unlike making whatever changes you like on the contract you issue, and this kind of inconsiderate behavior will irritate customers if it seems unnecessary.

Efficiency

Communication efficiency is also an important aspect of service, and it is never too late to care. Why would customers prefer to work with a trader, rather than directly with the factories they find? It's very simple. Because they trust this middleman, who speaks their language, and they communicate efficiently with each other. So, communication counts the most.

So, it is no surprise that some customers state that they are willing to pay a trader for the good services and efficiency he provides.

Actually, many communication breakdowns are caused by suppliers who, not knowing our bottom line, hesitate to make decisions, taking it for granted that the customers' time is valueless. In contrast, customers are racing against the clock, so you can't keep up with their pace and you are out of business.

One of our customers once asked, “what will you do if something goes wrong with your goods? “
My colleague paused for a moment before explaining how our quality management system works. The customer interrupted and said, "I’m just curious what should I do if my goods are unqualified. The rest is irrelevant to me. It's your management problem."

“We make a spot check as per AQL standard or industry standards before delivery, and any defected products we detect are not allowed to leave the factory.” I replied, “And if what you receive is truly unqualified, we can give you a return and exchange. It is totally fine, and we can write it down in the contract. ”
The customer nodded, “Sounds good, OK! ”

Therefore, after-sales service is one of the most important services that customers want. We should establish a pragmatic after-sales practice that can win the customers’ trust and dispel their worries.

Extra services for the convenience

Customers also value convenience from their traders.

For example, customers who are trading companies may prefer an agency authorization letter, not necessarily the exclusive one.
They may want to open a letter of credit for partial shipment each month, in which we need to cater to partial foreign exchange.

They might wish to operate delivery without bills of lading in order to avoid additional port charges when time is tight.
They may sign quarterly contracts or even annual contracts to secure goods at a fixed price unless the price floats dramatically due to changes in materials, labor, exchange rates, and packaging materials.
They may prefer your document assistance when reporting to their boss or the end customers or even have you preparing it for them.

Customers will generally not pay for these extra services, but they will be grateful if they are provided. And they will stick to the trader that provides them with the efficiency and convenience, knowing that only a few traders can do these.

Imagine what an experienced trade would do to service his customers:

He is well aware that it is common practice to settle payment by L/C before his customer informs him, whereas other competitors are still discussing pre-TT, and advance payment with the buyers.

He recognizes it as a usance Letter of Credit at sight when a Korean customer proposes to make a letter of credit, whereas other traders are still unsure if it is safe.

He prepares all of the documents and materials before the customer mentions it, whereas his peers still make excuses for not being able to do this or that.

Conclusion

Apart from the above-mentioned details, what other factors should we consider when choosing a professional supplier? Just click the following link for some clues:

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Angela Yu

Hi, I'm Angela, the founder of Plantmax. These articles share knowledge about promotional products from a Chinese supplier’s perspective.

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