Did you know…
—
more than half of the exports from China are facilitated by trading companies?
—
one-fifth of Chinese exports are handled by more than one trading company?
— 40%
of foreign importers believe that they are purchasing products directly from
Chinese factories — but what they believe is not always the truth!
Secrets
of the Trade
What
goes on behind the scenes that you don’t know about?
Trade
Shows
Industry exhibitions are a
great place to meet fresh suppliers and make critical connections, but on the
convention floor, are you dealing with a factory or a trading company?
If you ask an exhibitor at
a trade show whether they’re are a trading company or a factory, the answer is
usually “We’re a factory,” regardless of the truth.
Factories typically concentrate only on production and are unlikely to appear
at an exhibition. It’s the middlemen and trading companies who focus on
advertising and promotion, and many of
the suppliers you see in exhibition booths, and even on B2B platforms, aren’t
actually factories — they’re trading companies.
HiFactory Helps!
Factory
Trips
Cautious buyers often take
factory trips themselves, as much to check the quality of the product as to
ensure that they are cooperating with real factories. This is a wise move, but
how much of it is just an act?
Even on a factory trip,
the personnel with whom the buyer interacts are possibly middlemen. Most people
working at the factory, foremen and laborers alike, can speak no English. Middleman puts on a show and acts as a manager to introduces the factory like it’s their own
— convincing and reassuring for the buyer, but really only a facade.
The
middleman puts on a show and acts as a manger
to introduce the factory like it is their own.
Direct Business with Factory
Is
the trading company you work with adding value to the deal — or just cost?
HiFactory shows you production line photos from the actual factory.
Price
There’s a good reason why
we have the saying “cut out the middleman” — working with one will inevitably
raise the cost, especially since operational costs and labor fees for trading
companies in China’s first- and second-tier cities like Shanghai, Guangzhou,
Ningbo, and Hangzhou are substantial. This
isn’t adding anything to the factory’s product; you’re just paying for the
trading company’s downtown office.
Efficiency
As a buyer, your needs can
change at any time. Factors like translation and time difference create
unavoidable delays, but every step between the producer and you is additional,
unnecessary lag. The processes in commercial chains established by trading companies are
typically very inefficient, with your essential communication changing
hands many times before it reaches its destination. Additionally, detailed
technical aspects of a project can be difficult to translate and explain, and
rather than trying, trading companies often simply keep buyers in the dark
about delays or other problems that may arise.
Quality
Wanting to remain
essential, trading companies are rarely willing to connect buyers directly to
factories. Unfortunately, those same trading companies are seldom familiar with
either a factory’s products or the buyer’s needs. What’s more, to cut costs and
ensure their own profit, middlemen sometimes compel a factory to sacrifice the
quality of materials in order to meet the buyer’s target price. These failures to
communicate easily lead to frustration — and a product that’s nothing like what
you expect.
All those factors add up
to a lot that could go wrong. That’s why we’ve created an alternative: HiFactory.com, a B2B platform that vets
and gathers quality factories all in one place.
HiFactory.com helps you easily find factory
without the intensive, painstaking research required to find a factory
independently, or the added cost or the risk of being cheated by a middleman.
By analyzing factory data and checking background credit information, HiFactory
screens and verifies quality factories through its own branches around China. This
allows HiFactory to provide you with extensive, accurate product information
and verified factory visits.
IV.
Factory Tiers
In HiFactory’s experience,
factories across the majority of product fields tend to fall into four tiers. We have developed and
implemented a proprietary system of factory auditing and evaluation that
reflects this.
2% — Industry
Leaders — high quality, high quantity, high price
8% — Upper
Range — high quality on a smaller scale
30% —
Mid Range — quality products with reasonable prices
60% —
Basic — unreliable production and management
The top 2% of factories in
China, the Industry Leaders, are large-scale operations providing top quality
products. However, their prices are quite high, and these factories focus on
bulk production for high-volume buyers, paying little attention to the needs of
small and medium-sized buyers.
At the other end of the
spectrum, factories in the Basic tier are small, often single-machine workshops
in a garage with disorganized management and weak credit, unreliable in both
production quality and delivery.
HiFactory works primarily
with second and third-tier factories, whose efficient management and reliable
quality control systems allow them to balance high manufacturing standards and
product quality with reasonable prices.
HiFactory
is ready to help if you encounter any problems or difficulties. So that we may
better assist you, please choose a category for your question.
HiFactory Helps!
HiFactory connects you with factory.
HiFactory provides you with precise and concise
information.
HiFactory shows you production line photos from the
actual factory.
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