If you’re among the fortunate who have taken the step to go global in the furniture and construction hardware industry, that means you’re doing very well and your business is stable and profitable. Congratulations, it’s never an easy journey. At IBMH, the leading company in hardware and accessories for the furniture and construction industry in China, we have helped many companies all over the world improve their results even more by going global.
To go global: when is the right time for my company?
If you aren’t sure if the decision to go global in the furniture and construction hardware industry is the best choice, review these points:
- You need to have a directive team that understands and shares the strategic need to go global. As we’ve said on several occasions, at IBMH, we believe in teamwork. No one gets far by themselves.
- Do a SWOT analysis (Strengths, Weaknesses, Opportunities and Threats). A good way to evaluate the possibility of going global.
- Be a competitive, recognized and unique company in your home country.
- Have a tested business model. It won’t be simple to go global in the furniture and construction hardware industry, so:
• All internal and external processes must be optimized.
• Having a secure network will facilitate fluid communication with your business in your home country.
• You must be able to develop good networking
- Be proactive in having a) a good strategy for how to go global, and b) a perfect business plan. One tip: make a plan that aligns with the real status of your company and the market. We recommend setting clear and attainable goals.
- Be very clear on what makes you different. This is perhaps the main key to IBMH’s success: knowing what makes us unique.
Go global in the furniture and construction hardware industry importing products from China…
All of the points above are fundamental for any part of the world, BUT now, let’s look at China specifically: a particular, complicated and fairly unfamiliar country to which many turn when they want to go global.
We have lived and worked here for more than 20 years. We speak the language, we know the market and we understand the social codes. To start, we’re going to debunk some myths. In this way, it will be more bearable to go global in the furniture and construction hardware industry:
It’s easy to find the best prices
Obviously, it’s possible, but it’s not easy. Negotiation is tough, but on top of that, you must add to your manufactured imports:
• 15% in miscellaneous expenses such as insurance, bank fees, transport, etc.
• 25% of the total price of the goods for everything related to customs and other border services. The resolution of all these matters will cost not just money, but also lost time on the part of your employees.
Don’t forget about transport
A Chinese manufacturer, at first, will suggest an FOB (Free on Board) service, which covers only the transport to the shipping port in China. From there, your company will take over all expenses and responsibilities. This process, if not managed correctly, can destabilize your business.
What quality and design do you want?
- The Chinese are able to copy things perfectly (this can be beneficial for your business or very harmful, so evaluate this!).
- Many of the materials that are used to manufacture in China are not accepted in international markets.
- Often, manufacturers start out working well, but very quickly, the quality of the products declines. You have to invest a lot of time and money in permanent Quality Control.
Make yourself understood and understand what isn’t said.
The ideal situation is to speak Chinese. Otherwise, you’ll have to find a Chinese interlocutor who speaks English well and ask them to repeat to you exactly what the other person said, almost word for word. Linguistic and/or cultural misunderstandings are quite common in China.
In sum: go global in the furniture and construction hardware industry, yes, but with IBMH
It’s that simple.Review our tips and see if your business is ready to go global in the furniture and construction hardware industry.
Save time, money, and lots of headaches. There’s a reason why we’re the leader in Purchase Management. See for yourself!
