China Business Model 1 - Part B

Importing the right product

What not to expect?

Many people have the misconception that electronics products and brand names can be found in China for a huge discounted price. WRONG! While it is true that most electronics and brand named products are produced in China, the factories have an agreement with the businesses (i.e. Sony, Microsoft) so they are not allowed to produce more than what the company ordered and can not resell those products. Thus, if you are looking to profit from buying Xbox360 or ipod and resell it here at a huge profit. Sorry, you got no luck.

What can you sell?

Products that do not require much technology or designs are the best products you can obtain from China. For example, one of my dad's business export artificial gem stones from China to all over the world, selling over 100K per month. My dad's partner is in the business of exporting light bulbs, netting 5 million per year. These products are easy to make, not technologically demanding, and the cheap labors in China are good at producing them. The cost of production of these commodities in China is around 80% lower than that in the US, and yet it maintain a good level of quality. (no wonder US lose its jobs abroad) Sure it is not as sexy as an ipod, but hey, they make you good money.


Next time, I am going to talk about researching which products to sell.