China, located in Shunde, is famous for its global furniture and attracts many foreign buyers every year.
5 tips to help you first come to China’s Foshan furniture market:
- 1. Which Furniture Markets Should You Focus on?
- 2. Choose The Furniture Market According to Actual Demand.
- 3. Pay Attention to The Skills when Buying Furniture.
- 4. Shipment and Payment.
- 5. Some Suggestions for Furniture Imports.
See the 5 best Tips for Shunde Foshan Furniture Markets Import Guide in 2018.
Let’s go start!
1. Which Furniture Markets Should You Focus on?
In the Foshan Furniture Wholesale Center, there are large and small furniture wholesale markets.
But it is worth your attention generally, this is the 5 furniture markets in Foshan China:
- Louvre international furniture Exhibition Center.
The Louvre / LFC is the biggest and most famous furniture mall in Shunde.
High-end furniture with high quality and excellent rates is what you will find in this mall.
It is extremely comfortable and easy to explore.
This mall is the main source for China’s furniture industry.
The shops in this mall are known to be reliable and highly scam-free. Surely the price is not so cheap.
- SUNLINK Furniture City.
This furniture wholesale market is our favorite.
There are southern and northern furniture centers in this market. Products in the northern center are higher quality than the southern center.
Despite this, Southern District has the most transactions. Because the price there is closer to the public.
- Shunde Dynasty Furniture Wholesale Center.
In this market, the price is not cheap, but the quality is quite good. More is the brand chain stores.
- Tuan Yi International Furniture City.
This market is the cheapest store.
- Red Star Macalline Brand Furniture Exhibition and Wholesale Center.
The well-known chain furniture brand has many branches throughout the country.
You can refer to our article on the furniture market: Foshan China Furniture Markets
The furniture market you will to go to is like this:
2. Choose The Furniture Market According to Actual Demand.
We took the main 6 different markets and analyzed them separately:
- Number of Shops
- Market Consumption Level
- Types of Furniture
- Human Traffic
- Deal Volume
- Product Freshness
- Professional Degree
(6 stores respectively Louvre, SunLink (north), SunLink (south), Red Star Macalline, TuanYi, Dynasty)
So let us intuitively reflect the real situation of each store:
Click to enlarge view
(This analysis table represents Riwick on the analysis of furniture market, unofficial analysis. There is no commercial nature.)
From the analysis diagram, we concluded that:
- The Louvre, although the product freshness, service, and professionalism are leading other stores. Its high level of consumption has resulted in a relatively small volume of transactions relative to other markets. However, because of the attractions, the flow of people is high. Low-cost performance.
- SunLink(north), which can be said to be quite good, has a large number of people, with medium price and complete variety.
- Tuan Yi, the price is cheaper and the variety is quite complete.
But the style is relatively old, the update is not frequent.
- Red Star Macalline, brand chain stores, but the geographical position is not good (completely independent, but look at the stores’ distribution) as a direct result of traffic is greatly reduced, so store business is bad.
You might as well go to the past, after all, it is a big chain of furniture stores in China, big groups listed in both Hong Kong and Shanghai.
Prices aren’t low, style updates are general.
- SunLink(south), I absolutely recommend this store.
It is next to the Tuan Yi, the price is similar to the Tuan Yi, many shops, the variety is full, the style is updated generally.
- In the Dynasty, low version of the Louvre, the number of shops in general, the price between the Louvre and the north district.
Style update fast, breed small.
After reading this, we believe that you already have your own choice.
3. Pay Attention to The Skills when Buying Furniture.
Bargaining or bargaining prevails in China.
A bit of bargaining is expected and those who do not are considered foolish.
I agree that most westerners think this is A bit disturbing because they have never experienced it in their own country.
Ask and Compare
The first hour or more should be spent taking prices from various sellers.
Do not just ask price for the product you need. If you focus only on one product, the wholesaler may think you are interested and raise the initial price.
So asking prices for a variety of products allows them to guess what you really want.
Take the business card of the seller you find interesting and the price tag on the back of the card.
Furniture wholesale markets tend to be large, so it helps to get the business card from sellers so you can track your steps.
Remember to take pictures of your favorite products and stores.
It’s best to prepare a book for yourself and record the prices of your favorite shops and products.
Strive for Higher Profits.
Once you’ve identified the product you want and studied the same wholesale price, be prepared to have at least two wholesalers start the process.
According to my experience, sometimes due to many external reasons, bargaining with the wholesaler is not smooth, so the standby supplier is ready.
Furniture wholesalers usually give an initial price, so there will be enough price negotiations.
Counter that with your own low ball figure that should be lower than what you expect to pay.
At the same time, if you buy quantity enough, you’ll get more discounts.
Once prices are agreed, break the negotiation and ask the seller to prepare an estimate.
It local lingo, it is called common “Fa Piao” which is nothing but an agreement to sell.
At this point, you need to pay about 5% of the total price of the product as the initial deposit.
Final Words of Wisdom.
In China, negotiation is a normal part of everyday business.
It could be lots of fun and financially be rewarding provided you take it in a positive way.
Do not feel shy about haggling.
4. Shipment and Payment.
International Trade Terms, FCL, LCL, Bill of Lading.
For beginners, the term itself can be frustrating.
Most importantly, most people in the industry cannot explain in simple English how the shipping process operates between 0 and 1.
There is a lot of knowledge that International Marine knows, but for furniture, we only need to learn the following:
When you start to import from China, shipping is an essential thing to be concerned.
You could choose the size according to your product volume.
- 20” GP container: 5.9*2.32*2.36m; Capacity: 25-28CBM; Payload:17.5 Ton
- 40” GP container: 11.6*2.32*2.36m; Capacity: 55-58CBM; Payload:22 Ton
- 40” HQ container: 11.6*2.32*2.68m; Capacity: 65-68CBM; Payload:22 Ton
- 45” GP container: 13.58*2.34*2.71m; Capacity: 78-86CBM; Payload:29 Ton
Please check the following information for more regular terms:
You must arrange transportation all the way from factories/warehouse in Foshan to the destination port. And you are responsible for all export process.
The FOB price includes EXW price, trucking charge, THC(terminal handling charge), customs cost. Normally the trucking charge and THC will be depending on the total volume of the shipment.
We will arrange cargo to the port of Guangzhou or Shenzhen, handling the export process. Your own forwarder will manage to ship from Port Guangzhou/Shenzhen to your place.
LCL( less than container load) and FCL (Full container load,including 20GP,40GP, 40HQ, 45GP) are both available.
We will arrange shipment to your port of destination. But you need to manage the shipment from destination port to your warehouse and handle the import process.
One more tip for shipping:
If the CIF price is at a very low price, please pay more attention.
This is the method that forwarder uses to attract customers.
It will charge you a lot when picking up cargo at the port of destination.
Normally the charge of destination port can be asked in advance.
If you could find a reliable forwarder at your side, FOB or EXW terms will be better than CIF.
If you are a newcomer to complete international shipping knowledge, you can click on this article:
We will introduce the two most common payment methods in the furniture trade:
Telegraphic transfer (T/T)
The wire transfer is a standard bank transaction, placed either through the use of online banking or at a local bank branch.
All Chinese manufacturers use bank accounts to accept this payment method.
Almost all, that’s it. Although it is very common, it does not provide any protection itself.
This is different from the letter of credit.
We will review it slightly. However, this does not mean that T / T must be an unsafe payment method.
Paying the right amount at the right time is the key to success
The standard payment period is a 30% deposit advance payment before manufacturing, and a balance payment after completion – but before shipment (or at least before the issuance of the original bill of lading).
The timing of the second and final payment when and under what conditions are crucial.
This is all about giving incentives to suppliers to comply with your requirements.
You can take this incentive before the compliance and quality are validated by fully paying the vendor.
Therefore, after the quality inspector approves the batch, and before the final laboratory test returns, the balance must be withheld.
Although this payment method does not protect the initial deposit, the supplier still has a lot of losses, even if the deposit payment is guaranteed.
Chinese manufacturers usually have very thin profits.
Even if they would cut the buyer’s request and try to sell the batch domestically, they would almost certainly cause heavy losses.
Since the transaction is not completed, the supplier can easily fail.
T/T payment process
- Deposit payment (30%)
- Production begins
- Production is completed
- Quality Inspection / Compliance Testing
- Buyer approval batch
- Delivery to the loading port (eg Guangzhou)
- B / L scan copy provided
- Loading and shipping
- Balance payment (70%)
- The seller sends the original bill of lading and other shipping documents (on request
Destination port unloading)
Letter of Credit (L/C)
Unlike T / T, the letter of credit allows the buyer to force the supplier to fulfill certain pre-determined requirements before the transfer of funds, thereby adding an additional layer of security.
The key is not having to pay a deposit, which greatly reduces the buyer’s risk.
When paying by letter of credit, the question is under what conditions should the “release” payment.
The bank will automatically release the funds to the supplier, and then automatically credit the buyer after meeting these conditions.
Bankers are not industry experts. Once they receive the required documents, the funds will be transferred.
Before the transaction is completed, it is up to the buyer and the seller to negotiate which specific documents the latter must provide.
Here are a few examples of these conditions:
- Bill of lading (issued on or before a certain date to avoid delays)
- Approved quality inspection report (to avoid shipping defective items)
- Approved laboratory test report (to avoid shipment of non-compliant items)
Letter of Credit Payment Procedure
- The seller and the buyer sign a sales agreement stating the conditions that must be met before the payment is released.
- The buyer contacts the local bank and applies for a letter of credit.
- The buyer’s bank contacts the seller’s bank (in China) and provides a letter of credit.
- The seller’s bank contacts the seller and advises the buyer.
- Production begins.
- Production is completed.
- Quality Inspection and Product Testing.
- Delivered to the port of shipment and shipment.
- Provide necessary documents (such as quality inspection reports, test reports, and transport documents) to local banks.
- If the conditions are met (ie, the correct file is submitted), funds will be released.
Payment Method Comparision
1. Accepted by all suppliers with a bank account
2. Low cost
1. Requires an upfront deposit payment
2. No payment protection
1. No deposit payment required
2. Puts pressure on the supplier to comply with buyer requirements
1. Rarely accepted for very small orders (e.g. Below $30,000)
2. Not accepted by all suppliers
3. High fees
Payment provider: never forward payment.
In order to get what you want, you have to give the supplier an incentive to follow your instructions.
How and when suppliers pay is crucial – and may be the deciding factor between success and failure.
By making full payment to the manufacturer, you will eliminate their incentive to comply with the terms of the contract.
Yes, you can still find quality problems, but if the facts prove that a large number of units are defective – or worse, if the batch does not meet the requirements, you will leave little ammunition.
Although 30% of advance payment is required, pre-production, but the final balance payment (usually 70% remaining) can only be paid in the following situations:
- A) the quality of the product has been verified.
B) compliance with all applicable safety standards and regulations (such as material restrictions and labeling requirements) has been verified.
We can learn from experience that Chinese suppliers are easy to deal with as long as the Chinese suppliers’ benefit – in this case, they get paid.
Of course, they may exit, you still lose the deposit, but selling these goods in the domestic market is rarely a viable option for the supplier.
Whatever you do, you must first complete the payment until the quality and compliance are verified.
5. Some Suggestions for Furniture Imports.
For first time importers, try to find a furniture sourcing agent to assist you.
Although we have already described a lot of ways to find a good furniture supplier, for international trade, just good suppliers are not enough. You also need to deal with a series of product inspections, shipping, payment and more.
Then you need to find a sourcing agent in China. They will help you deal with everything in China and teach you how to sourcing products from China.
A good sourcing agent will really help you a lot.
Here is a good post on China Manufacturing: To Sourcing Agent or not to Sourcing Agent
What Kinds of Sevice You can Get from Chinese Sourcing Agent？
There are many types of their services, but they are roughly divided into 4 points:
- 1. Help you find a read factory in China who manufacture your products.
- 2. Manage production of your products.
- 3. Inspect the quality of your products.
- 4. Arrange shipment of your products.
You can also learn more in this article: Best 10 China Sourcing Agent.
Freight Forwarders and Shipping Companies
Finding the right shipping company or freight forwarder in China can be a serious challenge.
If you choose to complete all the import process yourself, perhaps these shipping companies can help you.
Basically, through the Freightos Marketplace, importers can easily compare, book and manage international shipments of more than 50 freight forwarders.
They are very focused on supporting small importers and provide some powerful support resources as well as live chat and phone support.
Freightos’ ordering process is simple, including streamlining the transfer of your documents to freight forwarders and centralized freight management.
Tryfleet.com is the official website of Fleet Logistics, a logistics and supply chain company that also provides transportation services by connecting freight services with customers and importers.
The fleet was established in 2014 as an online logistics market where you as an importer can contact shippers and other service providers.
This service can help you find the best solution for your cargo transportation at the best price and let you make an informed decision.
Flexport is a unique freight forwarding company, as many people often call it Ocean Uber. The company was founded in 2013 and is based on an online dashboard that connects importers and freight forwarders.
It is also the first company to achieve digitalization of international shipping, allowing importers to more easily move goods to transparent areas.
The company’s regional China headquarters is located in Shenzhen, China. They also have another office in Hong Kong.
This is a technology company that allows importers to book, track and process their goods through an application or an online dashboard portal. You can also access logistics and freight service providers on their online portal.
Overall, the company is still young, but it is growing rapidly and is one of the best among importers’ digital services and online tools.
Now It’s Your Turn
Did you learn something new from this
Import Furniture guide?
Or maybe you have a question.
Either way, leave a comment below right now.