A popular question we get asked is what products should I import from China to Australia? And it really depends on a few important factors. There are so many products that you can import from factories in China and develop a consistent business from doing so. As long as you have done the appropriate product and market research, and establish a detailed sales and marketing plan, there are plenty of opportunities to do so.
Some products have more potential than others, some are quite competitive while other products can fill a niche market and quickly grow a loyal customer base. It is imperative to do the required product and market research before importing goods from China to Australia. The main things to take into account when looking to import products are as below:
CURRENT PRODUCTS IN THE MARKET
What does the market currently offer? What companies are currently offering these products? What sales channels are they using? How are they marketing these? What is the market price? Will you be offering the same products or can you offer a different, new or improved design? Find out everything you can about the current products in your market and create a viable business plan.
NEW AND INNOVATIVE PRODUCTS
New and innovative products generally provide a good opportunity to be one of the first players in the market and capture sales quickly and provide good profit margins before too many competitors get established. Technology and innovation is rapidly changing in today’s world, if you can come across a new product and perceive that there will be a market for these in Australia, get on it early.
LONG TERM VIABILITY – PRODUCT AND MARKET EVOLUTION
How long have the products been selling into the market? Do they look to be evolving and/or phased out in the near future? Products such as building materials, furniture, steel, packaging etc are basic products that will generally have a long term demand for. On the other hand, products in the Technology/Software Industry are rapidly evolving in today’s world. New products are being created all the time which save time, improve lifestyle, or make access to information so much easier. Keep in mind when looking into products such as these, a product that is successful now may be quickly outdated with a new and improved design, or a whole other product is created which could significantly affect your market share. If you are in the technology game it is important you actively research and keep ahead of the market trends and developments so that you can evolve quickly.
SUPPLY VS DEMAND
Have you found a product that has rising demand around Australia, or you have heard that existing suppliers around Australia are just not providing a consistent supply of these products? If there is a strong demand and lack of a consistent supply, it will provide you a good opening for you get into that market. Talk to the businesses that want these products and if you can guarantee consistent stock and supply, they will more than likely buy these high demand products from you.
CUSTOM MADE PRODUCTS
You may have seen a product in the Australian market but have an idea on how this can be modified or improved. China are specialists in manufacturing custom made products exactly how you need, you are not restricted to what has been done before, or what is currently being offering. If you want to change design, specifications, materials, colours, branding etc – a good manufacturer will be able to make these to your specific requirements.
START WITH A SIMPLE RANGE
If you are importing a product for the first time, it’s best to offer a simple range for your first import to Australia. When you have created sales channels, increased sales, grown your customer base and received actual feedback, you can then decide to offer a wider variation of products (colours, sizes, design etc) or you may then decide to offer additional products that will compliment your existing product range.
CASHFLOW
Importing goods from China to Australia will require a significant amount of cash to buy goods in advance before getting a return when sales increase. You should accurately understand how much outlay there will be to buy the goods in the beginning, when you plan to get money back in, and when you will need to look at reordering more goods to ensure you don’t run out of stock. If your products start selling quickly then you may have to order more than you originally did to keep up with demand, which will require more cash outlay.
