3 tips for importing toys to Australia
Business in China part 1
- We are primarily an import company and over the 10 years to date, we have imported toys and a vast array of product into Australia. Including exercise equipment, golf carts, spas, wicker furniture, and remote control vehicles, just to name the main ones.
- For various reasons in the last couple of years, we have pared down our diversity.
- We are known as a major importer of trampolines and trampoline spare parts in the Australian market. Trampolines have been in our range from the beginning and that gives us 10 years of trampoline experience, importing them, improving the design, and selling them. As a result of all our learning’s, we are now in a long-term business relationship with our 3rd trampoline factory.
- From all our earlier product factory dealings; I honestly don’t know how many we have dealt with in that time but we are quite experienced in the area of sourcing and importing to Australia and have a few tips to share.
- There are many things we have learnt as an importer that had never occurred to our thinking before going to China. As a result of our learning’s our business has grown stronger every year and overall when reviewed and assessed can be narrowed down to be attributed to the following 3 success tips below.
Importing stories and reality
- As a business owner deciding to import from any foreign country; just the whole unknown concept is daunting.
- Then upon actively researching "importing" as an option for your business you soon discover through conversations or reading online there are many horror stories associated with importing. I have concluded in very simple terms that many of the stories relate strongly to errors of miscommunication from importer to supplier and supplier to importer. Others can generally relate to poor relations and understanding of cultures from both parties.
- Having the desire and motivation to import for the long-term goals of your business can be fraught with enough concern and anxiety from the beginning; trying to work out where to start with sourcing products, then who to trust and what to do regarding the legal and business end of importing, without the further worry the whole concept being clouded with the fear of, “what if nothing is actually shipped” which is at the end of the day losing all your money is the biggest fear and it does happen.
- After filtering through factories and extensive communication with a new supplier you can still find concerning thoughts lurking after paying your hard earned cash if anything will turn up at all in the container! And even after you have unloaded a container of goods; it isn’t until you have opened and check everything against your specs, do you actually relax! Or not?
What I cover here in broad terms are 3 main things we have found critical to our overall importing success.
Main contributors to importing success
There are many things we have learnt as importers that had never occurred to our thinking before starting our business or before going to China. There is undoubtedly more for us to learn as every year there is a new challenge awaiting us in some form or another, or challenges – but hey that is life and business!
Success Tip #1 -Communication
- Initial contact and communication with a factory generally starts via a web chat facility or email. Right from the very first point of communication and at all times going forward; maintain clear and honest communication.
- Use simple grade school English and mirror the words that they use to you, back to them.
- Initially, you will tell them your name, where you are from and why you are looking to do business with them or why you have an interest in a specific product.
- Then this is the tip – Ask only 1 question at a time and wait for the answer.
- Not always easy and after 10 years this is one; as a talker, I personally have to be most mindful of.
- I have another article written linked here on communication and I drill down some more as you want to be very clear and reasonably committed and comfortable before the expenses associated with the next Success Tip.
Success tip #2 Visit the factory
- We have been fortunate with our importing experiences overall mostly due to our rule to meet with suppliers before ordering.
- We have learnt through visiting factories; we build a stronger relationship faster than it is possible via Skype and email etc and gain knowledge and feeling of their factory and workers.
- We have been to, many factories and chosen not to do business with quite a lot of them over our 10 years. On one visit to China with Hamish, we went to 15 factories in 10 days in 3 cities it was an epic trip – 10 of the factories were new to us and from it all we only ended up doing business with 2 of them – It saved us a lot of money too as we decided not to import into what would have been a new sector for us.
- I intend to write an article on what our visits have saved us from and it will link here. The value of visiting a factory.
Success Tip #3 Education and experience
- From our experiences with various factories we have found if the owners are educated or have worked overseas in a western culture then they are easier to work with (maybe not always an ideal rule to go by but it works as a clue at least).
- Our current trampoline supplier is excellent. I am not saying there haven’t been problems, there have but the difference is that they are keen and willing to learn how to improve their products, educate their workers and have ongoing worker training; not only on quality but workers personal work environment, safety, factory teamwork, and communication.
- We have seen the proof and known the results of the improvements including changes made for better work environments for their workers and expanded production line systems which directly results in better products for our customers.
- We attribute their understanding of western business and best practices to their education at UK universities, time spent working in the UK and also global travel experiences.
- I am also going to write an article covering the benefits of blending two cultures and the link will be here.
The 1,2,3 main tips of importing from China
- Before engaging in big business in China and placing big orders we highly recommend building a personable relationship through clear communication a genuine interest in the person you are talking with, and in general Chinese culture.
- Definitely valuable travelling to the factory to meet the people and see their facility and standard of work, only then proceed. Continue to visit annually at least or more as your business needs.
- Often the only time you find out the factories values is when you visit and the owner takes you to there is an opportunity and the time with your host to seek to understand their business values, challenges of workers, culture, corruption challenges they face and globalisation.
If you want to start your importing venture small that is ok – you are likely then to have to use a trading company and not a factory directly.
But if you are preparing to invest thousands of dollars on containers of products and the setup of warehousing etc then the trip will look cheap alongside what it will save you in a potential issue of choosing the wrong factory to work with.
There are some very good trading companies for placing small orders and like factories some very unscrupulous ones! So take heed and please do read my article on communication with factories in China.
We wish you well in your endeavours and are always happy to chat or answer questions.
Feel free to call 03 5292 1100 or message here
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Photo - Flickr - Michael R Perry
