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A must-see for those who will do business in China from now on! 5 Secrets to Successful Negotiations with Chinese Factories to Learn From Failures

China Business Column example Principles of authentication PSC PSE Radio Law
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Hello. It is a hori of the manager.

What I often feel about our company doing a Japanese certification agency business mainly in China is that customers do not know much about the Chinese business before certification.

Of course, there are many parts that we have asked us to do because we are not familiar with Chinese business, so it is not a bad thing in itself, and we are also grateful.

On the other hand, as a place, I think that not knowing about Chinese business is almost synonymous with not knowing chinese business customs and characteristics.

This is not a matter of ability, it is simply a matter of knowledge or experience.

As proof of this, when a customer who is stuck in negotiations with a Chinese factory consults with us, we will advise you on a solution, and it usually works.

By the way, we bridge the bridge between the production factory and the inspection organization as a certification agency, but it is the customer's job to install the cooperation of certification in the factory.

This story is based on "certification", but since it is the same in the sense of having the Chinese factory cooperate, please look at the viewpoint of how to proceed with negotiations with the Chinese factory advantageously regardless of whether it is certified or not.

Learn the secrets to successful negotiations from our own real-world experiences and our customers' failures.

The China factory will not provide you with the documents and samples necessary for certification.

This is a common story and one of the main reasons why authentication is not progressing.

As I always explain to customers, the quality of our Factories in China in recent years has improved greatly, so if it is not a very difficult PSE or PSC, we often pass certification at once. Of course, we also support the progress of certification without delay.

Then, when the product itself is not so related to the progress of certification, what is wrong is that the factory does not submit the technical materials and product samples necessary for certification.

Technical documentation is specifications, schematics, parts lists, etc. To be honest, it's pretty complicated.

Of course, we explain everything to the factory with everything in place, but it would be nice if it was a factory that manages this material well, but there are many cases where the materials are stored separately or in some cases do not exist.

Then, the factory may need to be ordered from a supplier or made by itself. This takes time. Still, it is good if you do it, and it is said that it will be put off or done in a terrible case, but you can not do it after all later! It is also in Zara to say.

The reasons vary, but later dotacan really bothers my head. We are proceeding with the premise that they will cooperate, so we will have to think about countermeasures in a hurry.

There are the following measures to prevent the submission of factory documents and samples.
Please refer to it.

(1) Promise a reasonable amount of purchase. Pay in advance.

This is a royal road, isn't it? The reason why major companies are talking early is that they promise to buy in large quantities, so the factory is also willing to cooperate.

Even our customers, when they purchase in units of 1,000 pieces, the factory response was really fast and this was also saved.

However, on the other hand, if the purchase lot is 100 or 200 pieces for small customers, the priority will be lowered as a factory.

Some customers were worried that if they paid first, the factory would run away, so they tried to cooperate without paying anything, but the act is NG even from the Japanese's point of view.

I don't know the anxiety about paying ahead to overseas factories, but if you want them to cooperate with overseas business with little investment, I feel that it is important to abandon the customer awareness and advance business with the Chinese factory.

In any case, it is not that small capital is bad, but it may be difficult to obtain cooperation from the Chinese factory, so please try to respond assuming that case.

(2) Start authentication after having prepared all necessary documents first

This is a story after firmly attaching cooperation to the factory in some way, but there are companies that ask the factory all the necessary documents and confirm whether or not to submit them.

These companies have the resources to talk to the Chinese factory to some extent in-house, and all they do not understand is the technical part.

In this case, we will have a contract with our company in advance and proceed with the discussion while sharing a list of necessary documents. Then, if there are documents that cannot be issued to the factory, we will consult with our company in advance and proceed with work. I feel that such a company is doing a solid job.

It is understood that the lead time of certification depends on the cooperation of the factory, so it feels like you are doing the part that you can control yourself.

Some customers say that they want them to throw everything out and hurry up as much as possible, but I honestly have the impression that it is quite difficult.

Of course, if the factory responds without problems, it can be certified immediately, but we cannot enforce cooperation with the factory, so we would appreciate it if you understand that point. Of course, we will always consult with you about any questions.

(3) As a last resort, make your own unsubsidated documents.

For example, when you are told that only one of the five types of documents cannot be submitted by all means, you know a specialized inspection organization that can prepare documents, so you will incur a separate cost, but it is possible to request creation there.

However, it is still paid, so it is better to have it submitted to the factory as much as possible, but if it is not good by all means, there are last resorts such as the case of dotacan after the above.。

I don't want to do it if there is anything I can do, but I think it's not in vain to remember that there is such a means.

In addition, since only samples cannot be made by yourself, it is necessary to have the factory prepare it no matter what.

 

Send the wrong authentication report in PSE, etc.

I have told you several times on this site, but it is a very important story, so I will tell you again.

You may think that there is definitely a flaw that the Chinese factory has certified PSE by itself using a Chinese inspection organization.

Regarding the Radio Law, there is almost no problem even if a Chinese (overseas) factory goes at a Chinese (overseas) inspection organization because there are many contents in accordance with international standards, but PSE is in accordance with Japan's own standards, so to be honest, very few inspection organizations understand the contents.

It is better to think that the inspection organization also makes a mistake in the content.

CQC, which is famous as an international certification body in China, or China TUV, etc., will certify without problems, but these places are highly expensive to certify, and scrutiny of whether the factory is really and operating is severe, so most factories will not.

After all, it is a report of such a quality, so it is better not to trust too much. In addition, most of these factories have submitted reports only and have not been able to create "model classifications", so they cannot be submitted to the Ministry of Economy, Trade and Industry after all.

In any case, the current report content can be submitted to the Ministry of Economy, Trade and Industry in itself, but since the content is wrong, if there is a product accident after sales and the Ministry of Economy, Trade and Industry is asked to disclose the report, it can be a serious situation.

If the factory says that it has a PSE report, you simply do not think lucky, is it really okay? It is safe to have a feeling. If you encounter such a case, please consult JET (NEC Institute for Environmental Safety) or our company.

The person you contacted doesn't tell me the factory contact information at the sales agent.

I've written this a few times before, but please remember that it is important to advance business in China.

I want to find an electrical appliance at Alibaba etc. and authenticate this, and when I contact you from the sales page, it is good if I connect directly to the factory person, but it is a little troublesome if the other party is a sales agent (intermediate).

In short, these people basically do not give the contact information of the factory because their work will be lost when the orderer can contact the factory directly.

On the other hand, when certifying, information on the production plant is essential, so it is meaningless no matter how many documents and samples are available.

In other words, if you want to authenticate, you have to get factory information, so you have to convince the distributor.

The way to persuade him is to "if you are in contact with the factory, you will not skip it, you will always make a transaction via you, you can make a contract." It is the best to do.

However, in this case, it is only good to authenticate and make a transaction once, but if it is a multiple purchase, the intermediate cost will increase, so you may want to look for another factory a little more.

Only defective products arrive

If the factory is at a level that can perform certification, I think that the production capacity itself is basically not low, but it may not be uncommon for there are still many defective products when inspected.

It is good if the defective product is stopped by inspection, but if something that has already been sold becomes defective, it will be troublesome.

However, due to differences in perceptions of defective products with factories, I think there is a discrepancy between what I think is defective and what I think the factory is defective, so I think that will have to take time to discuss with the factory.

It is good if there is a linguistic resource in the company that can interact directly with the factory, but if it is not possible to do so, it will be outsourced, but if it is not a subcontractor (company) that can firmly understand and trust this intention, it may only send over an appropriate reply.

Then, it is necessary not only to the factory but also to have a relationship of trust with outsourcing. Please select a contractor firmly around here.

Regarding PSE and PSC, importers are required to conduct voluntary inspections before shipment and to store the results (reports) when placed in production plants.

The response is very slow.

Even if it is said that it is late in a word, the nature will vary depending on what you are preparing.

They are slow to prepare documents

As mentioned earlier, if you have one existing document in one product in the factory, you will be ready as soon as possible.

Also, if you feel like you've never been involved inside a factory, you tend to think that documents are in one place in the first place, and even if you look for one room, you'll be looking for a gassack.

However, good and bad are left aside, and it is rare for factories to have documents in one place, and it is common to collect necessary documents only when requested.

We have also been involved in pse inspection agency at our Japanese factory, but we are also with factories in Japan. In addition, even at the Japan factory, we were unable to collect documents on our own, and we supported them and negotiated with suppliers instead.

If it is a Chinese factory that starts such work, it may be natural to be late.

However, for that reason, it does not mean that let's give up doing it early, but if the image of what kind of work is occurring at a Chinese (overseas) factory that separates the sea at least, I think that there are various ideas even if it is one way to encourage well.

Slow sample preparation (1)

If you are a general consumer, you have only seen products that have already been completed, so there is an image that things are completed immediately, but if you make small things from the beginning, it takes a tremendous amount of time to prepare materials, operate the line of the factory, assemble, inspect.

This is especially true if you have prepared about 1-3 samples of authentication.

In addition, when it comes to mobile battery inspection, dozens of samples of battery cells and battery pairs are required, so if you do not prepare for a reasonable period of time, it will be frustrating every day.

It is better to think that it is not that the preparation of the sample is slow, but rather that it is a suitable period of preparation.

In rare cases, there are samples in stock, or it is easy to prepare samples for testing by radio wave method, although it is miraculous.

By the way, when inspecting PSE, it is necessary to use PSE certified products such as JET, but this power cord is rarely sold separately, and it may be necessary for more than 1000 lots every time you purchase it once, so if you do not promise to purchase more than 1000 lots to request inspection, the factory often does not move.

Let's also remember these points as preliminary knowledge.

Slow sample preparation (2)

If you request another sample after failing the inspection once again, the factory will have to make a sample with different specifications and resubmit it, so it will take a tremendous amount of time.

If this happens, you should stop rushing too much and think a little slowly.

For example, if you give money, it does not mean that it will do it immediately, and you have to think about how to make a factory from scratch, so it is not meaningful to hurry too much.

It's not a problem that money can solve.

Even if it becomes this, we will basically go out to the end, but depending on the agency, there is an additional fee to pay to the agency, and some companies will not be on the way, so it is better to talk about the conditions firmly in that respect.

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