After a 2020 in which the textile sector has suffered significant losses, only partly mitigated by the sale of masks, many fashion companies are now considering how they can reduce expenses their businesses to stabilize. Under these circumstances therefore, importing textile and/or fashion products from China is very important because higher profit margins are possible thanks to low-cost production costs in this Asian country.
Companies import textiles from China, and it has become an increasingly popular option for many of them. In 2018 the United Kingdom imported textile products from China worth $6.7 trillion, placing China, the Asian Giant, as the country’s main partner in this sector. China was also the main supplier to Spain in 2019 where imported textile products represented a total investment of 6.29 billion euros.
However, a number of factors must be taken into account when buying textiles from the Asian Giant, starting with the size of the company considering importing. An in-depth analysis of the marketing and distribution channels, catalogue diversity, price range and annual sales level and not simply the number of employees is taken into consideration when we look at a company’s size.
The characteristics of a company will determine the level of investment we want to and can make and, therefore, the quantity of textile products we buy. The import volume is very important, because, as well as determining the cost price, it can influence the type of suppliers that can be used as many insist on specific minimum orders.
Another consideration is the quality of the products. Although, as in any purchase decision in any country, it has been more than proven these days that Chinese products are good quality, their characteristics and quality are directly related to the cost price.
A sourcing company; key to improving your import experience
When a company anticipates importing products from China to improve cost price and, at the same time, this amount is determined by aspects such as the product quality or purchase volume, a loop can be created that actually discourages importing.
A small or medium-sized company has limited bargaining powers which can be improved by hiring the services of a sourcing company. The sourcing company negotiates the price of the parts with the supplier that it usually often already knows.
It is important to remember that the value of a purchase is based on discovering, comparing and negotiating, and not all companies have enough experience of this. Constant changes in the international market and particularly in geographical areas like Asia, make it necessary for imports to be managed by a purchasing consultant.
Beyond selecting the best supplier and negotiating prices, using the services of a sourcing company will make importing much easier and ensure a higher success rate. Therefore, tasks such as ongoing communication with the manufacturer, quality controls or transport and customs management, which often become problematic for an independent importer, are supervised by and the responsibility of, the international purchasing advisory team. Thanks to its extensive experience, this team will be able to deal successfully with any unforeseen events.
With more than 15 years’ experience of specializing in international purchases from China to different European countries, we at S3 Group can affirm that, when done properly, importing textile and fashion products from China is a great initiative. Having the support of a sourcing partner is, without a doubt, the best way to ensure that a successful import experience contributes to the growth of a company’s competitiveness.