Interview on import from China issues and indispensable for the success factors

Tom Galey,

The Import Pro ™

Boulder, Colorado, with staff in Guangzhou, Shanghai, Hong Kong and Taiwan.

Tel: 1-303-246-1441

Tell in a few sentences about your company. Who are your clients, what is your mission, what problem do you resolve?

My clients are people who want to import from China and Asia. I guide them through the process as mentor and partner in business.
My business model is different; I believe that people want to learn how to import, not have someone do it for them. So we act as partners to source, test and inspect, and eventually bring in quality product.
I work with all of Asia, not just Mainland China … for Taiwan and Hong Kong are critical areas to include in any comprehensive China program

Why does the business partnership with China is of interest to you (your company)? Is this interest to work with the Chinese business potential or real?

Everyone who has ever worked with China will tell you that business success depends on the relationship. With that known, we cultivate and nourish the relationship in a genuine way.
We’ve lived in China and Asia, speak the language, and work with Chinese partners on the ground. This gives us a unique level of understanding in the entire business relationship. This knowledge I pass on to my clients. I consider all my contacts in my circle equal partners.
Understanding the Chinese mindset is no easy task … not because they don’t understand us, but usually it is because we don’t understand them!

How special, according to your point of view, is the business with China (shipment of goods, logistics, quality control of the production etc)?

Quality Control is the key, the most critical aspect of all imports. In the past, China quality was poor (as was it first in Japan, then in Taiwan and S. Korea, etc.) Today … quality can be had.
Good quality will not come from rock-bottom prices. The old saying, “you get what you pay for” is a fine rule of thumb.
We all know that to find a good person on the ground at the factory requires a lot of work, and trust… which brings us, back to the relationship.
A long-term relationship will also help … literally, goes a long way!

What prospects of the business with China do you see in whole for your company?

The future in China trade will be with the rest of the world. That’s opposed to where China has been exporting to for the past few decades: the Europe and US. Now it’s the rest of the globe!
Emerging economies such as Brazil and Russia, India of course… and other economies with growth and stability in government will be great prospects. Eastern Europe is just starting to realize the benefits of Greater China. African nations are all forging new relationships. South East Asia also can feel the growing potential of China trade.

How do you assess the current state of being in the know and the level of knowledge according to the different aspects of vision of business with China? How important and necessary is it for your and for your company? What do you think would your customers say on this question? What do your customers think about the “made-in-China” goods?

If you are going to work with China, you have to become a “China Watcher”. Meaning, you have to dedicate your interest in the entire Greater China picture. That means staying up on politics, to study history, to try to gain an understanding of the basics of the language, and of course, a deep cultural understanding. That has to be a primary fascination, not a passing side-interest.

Business education, variable seminars, courses and trainings are extremely popular nowadays. To what extent the specificity of doing business with China should be studied by the managers?

You need to know as absolutely much as possible, so all information and training will help in the long run. And… it’s a long run, meaning that success doesn’t come overnight.

Does the staff factor inside the company important when building the relations with China? Is it enough to manage with the only representative or intermediary which specialization is making business with China?

A Company should dedicate one staff member to handling only China business. This should be a specialist; someone who “gets it” and doesn’t get easily frustrated with working with China. It takes a special individual, not someone who is easily frustrated. It’s also best to have a dedicated employee on the ground in China. This should be someone you employ yourself, not just hire as a part-time assistant. The part-timer is not going to give you 100% because their interests are spread out.

What do you think will help to minimize the various risks arising when doing business with the Chinese companies?

A presence on the ground, someone you hire and maintain. This is not a suggested contact (possible family member or friend) but someone you find yourself. My services help line people up with this critical component. And,
Careful attention to detail in the inspection or approval process. We all know that it’s virtually impossible to return goods that have been shipped all the way from China… it’s never going to happen (even though, in the West, we may be able to ask for a refund or something.) So with that in mind an inspection is final, there is no going back… so, the inspection is most critical.

The CEO of the company and the majority of the managers do not possess the required amount of the special knowledge on this problem. How can they solve the problem of communication with the Chinese business?

If the CEO is not willing to line up proper communication and understanding … the firm will fail. Too often CEOs want to handle everything and micromanage China business. If he/she is not an expert, one needs to be found… or the reigns of responsibility must shift and the CEO needs to take a big step backwards.

I have met dozens of very smart and capable CEOs in my career; not all of them have the mentality it takes to succeed in China.

This is the emphasis of my new book. I list specific qualifications, key reasons why a leader will succeed or not when working with Asia. Look for more information on the book at www.3Chinas.com

And the last question. What would you like to tell to our audience?

I always tell my clients, there is no “magic silver bullet” to success with China. There is no single answer to any question, all situations contain variables and the only way to clearly see the path is with experience. If you don’t have it, you need to go out and hire or retain that experience.

I can help with a free consultation, or you can email me to discuss your unique situation. (And believe me, ALL situations are unique, there is no one single answer to any China issue, trust me, I’ve seen them all!)

Mr. Galey’s information:

The Import Pro ™