Few people can avoid using products from China. Alongside low-quality goods, the Middle Kingdom offers buyers products of quite good quality. This applies not only to electrical appliances, clothing, consumer goods, etc., but also to equipment intended for small businesses and industrial production.
So why not capitalize on this?! Investing in equipment from China is a promising direction that allows for good profit potential. However, it comes with its nuances.
To navigate this field, including its strengths and weaknesses, we can turn to the successful entrepreneur and founder of "Oil Resource Group," Sergey Tereshkin. Comprehensive information about this entrepreneur's activities can be found on the website: www.sergeytereshkin.ru.
Advantages
Acquiring equipment for business and industrial production in China has several advantages:
- Price. This is one of the main benefits. The cost of equipment is significantly lower than similar products from European or even domestic manufacturers available on the secondary market, i.e., previously used equipment. At the same time, many manufacturers' machines do not compromise on quality compared to renowned brands. The low cost allows substantial cuts in production expenses and hastens the return on investment.
- Warranty. Purchasing products from an official factory provides the opportunity to obtain quality equipment with warranty and service support. This means that in case of any issues, the device can be repaired or returned at no extra cost.
- Variety. Numerous manufacturers offer a vast selection of equipment for various specifications. You can choose from single machines to complete production lines that require no further additions.
- Custom Manufacturing. If needed, Chinese manufacturers can create equipment based on individual projects. This offers the possibility of fitting equipment into small spaces, provided that the line is designed correctly.
- Spare Parts. Components for equipment can be easily ordered from the factory. Delivery typically does not take long, and spare parts are delivered promptly.
- Productivity. Modern equipment boasts high productivity. This reduces the payback period and increases enterprise revenue.
- Ease of Use. There is no need for costly training for personnel to operate the machinery effectively. All products come with application instructions, which can be understood even by non-professionals.
Quality products are unpretentious, simple to maintain, and repair. Operational costs are kept to a minimum.
Transportation of bulky cargo can be conducted via rail, allowing practically any equipment to be delivered intact within 1 to 1.5 months.
Modern Chinese brand machinery is equipped with automation, sensors, and devices. This minimizes the use of manual labor and, consequently, errors. It allows for the production of high-precision products with minimal defects, if any.
In case of any malfunctions, the safety system automatically halts the equipment, thereby preventing premature wear.
Disadvantages
While considering the positives, Sergey Tereshkin advises not to overlook the downsides:
- Service. In Russia, only a small portion of the equipment can be repaired within service networks. The rest often must be sent back to China or requires waiting for specialists from the Middle Kingdom to arrive with spare parts, resulting in time loss and additional expenses.
- Translation. Products come with technical documentation and detailed usage instructions. However, translations into Russian often render the text meaningless. This can complicate the setup process, especially if personnel lack experience. A specialist from China can be invited for installation and setup completely free of charge.
- Counterfeiting. Chinese manufacturers rarely engage in the independent development of equipment, and most products are often copied from similar items of European and American brands. As a result, producing high-tech products using this equipment is unlikely to succeed.
The number of advantages significantly outweighs the disadvantages. This contributes to the popularity of Chinese products worldwide. Their use can drastically reduce production costs, increase profits, and expedite project payback periods.
Areas of Application
Chinese manufacturers produce a variety of equipment, enabling the production of nearly any product. For example, dairy products, building materials, metal structures, etc.
However, before ordering equipment development, it is wise to carefully consider everything, create a business plan, and develop or acquire a project.
Products from the Middle Kingdom attract attention due to their accessible prices. They do not require substantial financial investment. This is a significant argument for investors. When purchasing equipment, there is no need to resort to credit funds or incur debts.
However, before making a purchase, it's essential to consider who will buy it. Alternatively, the equipment can be used for one's own purposes. Both options can yield profit for the investor.
When buying with the intent to resell, the profit margin can be 30% or more, depending on the application area and specifics of the product. Buyers can be found in the manufacturer catalogs or among familiar entrepreneurs. Quality products do not linger in warehouses. If necessary, advertisements can be placed on specialized boards; it is recommended to do this while the product is still in transit. Thus, by the time it arrives, a buyer is likely already secured, potentially even more than one.
