When it comes to sourcing products from Chinese suppliers, finding the right distributors is essential. But how can you be sure you're picking the right one? With so many options out there, it can be tough to know where to start looking for the best China distributor.
According to research conducted by the international trade administration, "The China e-commerce distribution market captures almost 50% of the world's transactions and is expected to grow to $3.56 trillion by 2024."
The research shows that businesses around the world are trusting Chinese distributors more and more, but from so many potential distributors, how can you be sure to pick a good one?
For your convenience, we've developed a detailed guide on how to find the best Chinese distributor for your business. Keep reading to learn more!
But wait for a second! First, let's talk about the distributor network in China so we can get a big picture of this industry.
China Distributors Network – Finding the Right Service Providers
In China, product distributors can be found in all corners of the country. There are local distributors as well as national ones in the Chinese market.
The former tend to be smaller in scale but can provide more personalized service. The latter are much larger and have a more comprehensive range of consumer goods but may be less flexible when working with customers.
A Chinese distributor can deal with all sorts of products, from medical devices through office supplies to daily life products, and everything in between.
A lot of renowned distribution companies providing well-organized services are established in China. And these service providers always have good relations with hundreds of distributors in different industries, which makes them more professional and efficient when sourcing products from a Chinese supplier.
Also, these service providers can be very helpful in negotiating prices, quality, and delivery times with distributors on behalf of their clients.
The Hidden Truth:
Every distributor claims to be the best, but that's not always the case. They don't even have any physical presence in China and are just a brokerage.
We are sure you will not find such information on the internet easily. Because no one talks about this blind spot.
Most companies just develop their Chinese website and advertise themselves as the best service providers in the Chinese market, but the reality is something else.
Now that you know about this hidden truth - Be Aware!
But how can I figure them out?
How can foreign businesses with no connections in China know how to choose?
The simple and straight answer is - "Do Your Research!"
Just remember, a good distributor will have a solid physical presence in China, and they will be able to provide you with the necessary resources and support to get your products manufactured and shipped from China.
Now that you know about the distributors' network, let's discuss whether it is viable to choose the right distributor from China.
Choosing a National or Local Distributor in China as Your Business Partner – Viable Decision?
The quick answer is, "It depends upon you".
Everything is viable if it's done with proper research and keeping the future in mind.
The same goes for choosing a distributor in China. If you partner with a well-reputed, reliable, and professional company with an established position in the Chinese market, it can be an excellent decision for your business.
On the other hand, if you end up partnering with a small-time broker or a fake company, it can be a nightmare for your business.
No doubt, China is one of the leading countries in the world when it comes to manufacturing and exporting products for global buyers. But as you know, "With great power comes great responsibility."
The Chinese government is well aware of the importance of quality control and regulation of products. So, all the products that are exported from China have to meet specific standards and quality requirements.
Instead of all these, you should also be proactive and do your due diligence to ensure that you partner with certified China suppliers only.
Is that everything you need to do?
No! Even if you find distributors in China with proper certifications, it is not enough for supply chains to work properly. Many back-end tasks need to be taken care of, such as following the product specifications, quality control, shipping, and logistics.
It would help if you made sure that all these processes are streamlined and running smoothly so that trading companies can focus on their core business.
For this reason, it is always advisable to partner with a reputed and reliable contract manufacturer who can take care of all these processes on your behalf.
If you are interested in learning how foreign companies should search for the right sourcing agent in China, click here to read our latest blog.
What Does Business Mean to China Distributors?
In China, the word "business" is synonymous with the word "relationship".
The Chinese people believe in building long-term relationships with international brands who become their business partners. And this is one of the reasons why they are so successful in doing business.
Distributors in China always have a long-term goal in mind while doing business. They believe in developing a strong relationship both with their Chinese customers and foreign enterprises so that they can do business together for many years to come.
But wait - that's only one side of the coin.
There are black sheep in every country, and China is no different. Many scammers and small-time brokers are only interested in making a quick buck on unaware international businesses.
The game plan - which a foreign brand needs to understand!
You must be wondering - how can I identify these scammers and black sheep in the Chinese market?
The answer is quite simple.
In most cases, you can't!
Because you are not physically present in China and you don't have any connections here, it's pretty tricky to figure them out.
But don't worry, let us tell you the most common trick these scammers use to con many foreign companies - they will try to sell you something too good to be true.
For example, they may offer you a low price for your products or they may guarantee you a short delivery time.
If you come across any such offer, our advice would be - to stay away from those Chinese companies!
Let's differentiate what business means to a reliable distributor in the China market and what it means to a scammer hunting for foreign brands.
Reliable Distributor in the Chinese Market:
- Must be present on the Chinese internet (including Chinese social media and Chinese forums) and have a physical office in China.
- Offer accurate sales quota.
- Maintain good communication with no language and culture barriers.
- Allow process tracking facility.
- Certified team knowing the target market expectations.
- Precisely sorted companies on the panel.
- Offer several other services like QC, shipping, product development, etc.
Fake Distributor in the Chinese Market:
- Have an online presence but don't have any physical offices in China.
- Offer meager prices or unrealistic delivery time frames.
- Don't have a certified team.
- Can't provide a product tracking facility.
- Non-existent or poor sales and customer support departments.
- Don't offer any other value-added services.
- Always come up with a new excuse when something goes wrong.
Doing business in China can be pretty rewarding if you partner with the right company like Morpho MFG. But it can also be a nightmarish experience if you work with the wrong distributor.
But how can I sort them out?
Let's have a look at this section in detail.
Don’t Rush – Consider These Things while Sorting Chinese Distributors
Firstly, understand that anything done in a hurry will never give you the best results. And this is especially true when it comes to finding a distributor in China.
We know a lot of buyers who are in a hurry to place an order from foreign suppliers, and they end up saying – "why didn't I know this before!".
So, our first and foremost advice to you would be - to take your time, do your research and then decide. So that you might not be the next one saying – "I wish I knew this before!"
Here are a few things you must consider while sorting out the Chinese distributors:
• National and Local Market Credibility:
Make sure that the distributor you are considering is a credible company respected by both Chinese consumers and international business partners. They must have a good reputation in the market and have been in business for at least 4 to 5 years.
You must think that checking some online reviews can give you a good idea about their domestic market credibility.
But wait - that's not entirely true!
These days, anyone can post fake reviews on the internet, including Chinese netizens. So, you must be very careful when deciding based on online reviews.
The best way to check their market credibility is by talking to their past clients.
You can ask them about their experience of working with that particular distributor. This will give you a good idea of what to expect if you work with them.
• Relevant Experience:
Experience is the key!
You must ensure that the company you are considering has relevant experience in your market segments.
For example - if you are looking for a distributor for your cosmetics products, you must make sure that the company you are considering has experience in working with cosmetics companies.
You can also partner with a reliable contract manufacturer like Morpho MFG, who knows some of the best Chinese factories, and they can help you with this task.
• Modern Manufacturing Facility:
You must understand that a company is as good as its manufacturing facility.
The manufacturing facility of the company you are considering must be up-to-date, and it must have all the latest equipment.
The company must follow all the modern manufacturing practices, and they must be ISO certified.
This will ensure that you will get high-quality products from them.
• Pre-sales and After-sales Services:
You must ensure that the company you are considering provides good pre-sales and after-sales services.
The company's sales force must be responsive, and they should be able to answer all your queries thanks to comprehensive sales training and a lot of experience.
They should also be available for online chat or phone calls.
The after-sales team of the company should be helpful and able to resolve all your issues in a timely manner.
Are they offering efficient customer support or just faking it and giving you lip service?
• Online and Physical Presence:
Every distributor has an online presence, but only a few have a physical presence in China.
Because if they don't have a physical presence in China, they will outsource your project to some other company, and you will never come to know about it.
Most clients who came to us claim their one or more distributors cheated them before because they didn't validate their physical presence in China.
• Protect Your Confidential Data
As an important part of starting the cooperation with the chosen distributor, insist on signing a China NNN agreement that will protect all your trade secrets and confidential data.
The distributor has to follow Chinese law while working in this country, so in case of any abuse or fraud, you can easily take them to a Chinese court with such a document.
• Collaborate With a Contract Manufacturer:
You should know that there is a 90% chance of being scammed if you try to manage your project on your own.
The answer is:
You are not physically present in China, and managing the production process from a distance can be challenging. And also, you need to take care of other essential aspects of your business, like planning your marketing campaigns, attending trade fairs, or managing your retail stores.
So, collaborating with a reliable contract manufacturer is the best way to avoid all these complications.
Now, we have discussed all the important factors that you need to consider while sorting for a reliable distributor for your business.
Tired of Being Scammed by Fake Chinese Distributors – Do It This Way!
Let us tell you what you are doing wrong and how you can avoid it.
You are making the same mistake that most of our clients make.
Instead of outsourcing your project to only one reliable contract manufacturer and sourcing agency, you divided your project among different contractors to manage different aspects of your project.
For example, you will outsource your project to one company for product development, another company for quality check and yet another one for shipment.
The major drawback!
In this way, you will never know about your project's actual status. And if anyone of these contractors appears to be not performing up to the mark, it will directly impact your whole project.
What's the solution, then?
The Solution is:
Outsource your project to only one reliable contractor who can manage your whole project from start to finish.
That's where Morpho MFG comes in!
As a leading contract manufacturer and sourcing agency based in China, we offer a complete end-to-end solution for your business. From consultation to product development and quality check to shipment, we offer a one-stop solution for all your requirements.
We will help you keep track of your project and make sure that your project is completed on time and within your budget.
That's what you need.
You can also check out our latest read on fulfilling your production needs with offshore manufacturing in China.
Morpho MFG – Much More Than a Conventional Distributor Contractor in China
The conventional distributors or contractors in China are only focused on generating revenue.
They don't care about the quality of your product, and they will never bother to offer any suggestions that can help improve your product's quality. After taking care of just the very basics, they don't care about the company's products anymore.
On the other hand, we at Morpho MFG are different. We are focused on helping our clients to grow their businesses.
But how do you work?
We treat your project as our own, and we work with full dedication to ensure that your project is completed accurately and precisely. In our years of experience, we shortlisted some of the reliable manufacturing facilities in China through several pilot runs.
This helps us to offer you the best quality product at the most competitive price.
Moreover, we use the "Component Control Method" - What's this?
Suppose your project consists of several parts. Instead of developing them from only one manufacturer, we will develop those parts from companies with expertise in those specific areas.
This helps to improve your product's quality and saves a lot of time.
Morpho has a broad distribution network across China.
Whether you need a product from Guangzhou or Shanghai – we can easily arrange it for you from the companies available on our panel.
You just need to share the following information with us:
- Your requirements
- Product developer (if already shortlisted)
- Required quantity
- Your budget
- Expected delivery time
You can quickly get in touch with us through our website for an accurate quote or visit our home page for more details.
Still, have any questions?
Frequently Asked Questions
1. What is the Best Way to Find a Distributor in China?
There is no one-size-fits-all answer to this question, as the best way to find a distributor in China will vary depending on your specific product and business needs.
However, it would help you to find a reliable distributor in China if you network with other businesses in your industry, search for distributors in online directories, and attend trade fairs in China - if you are physically available in China.
The Best Solution:
Doing this will help avoid any potential issues that may occur during production or sourcing, as they will be able to provide you with the necessary support and resources. If you are looking for a reliable and trustworthy distributor in China, contact us, and we will be happy to sign a distribution agreement with you and assist you in everything we can.
2. Are Chinese Distributors Reliable?
The answer is: that you are the one who chooses whether the distributor is reliable or not. There are countless stories about how businesses have lost money because they didn't do their due diligence when choosing a distributor in China.
How to avoid it?
To avoid this, we suggest you take your time to get to know the distributor, their business, and their team. Most of the clients who came to us say they had already tried 2 to 3 distributors in China and always landed in a tough spot. So, avoid being the next one of them!
Partner with Morpho MFG today and let us be your distributor in China. Reach out to us to learn more about our services!