ExterneXXI at phase 2 of the 125th Canton Fair

ExterneXXI Team
Apr 30, 2019
4 min read

Oleksii Zirka, CEO of ExterneXXI, has attended the second phase of the 125th Canton Fair and represented our company in the biggest event in the world of trade. In total, all three phases of the Canton Fair features more than 25 000 suppliers in 16 different industries, which attracts more than 200 000 buyers from all over the world. This event is the greatest possibility to meet face-to-face with the most credible suppliers and negotiate the best deal conditions. The second phase is a strategic event for ExterneXXI as household products are currently our business's primary domain. The industry of household products is continuously evolving through thorough research of new tendencies and expertise in the domain. Thus, our clients are always able to get high margins on new best-sellers before their competitors know about them. This phase represents an exceptional opportunity for ExterneXXI to discuss with existing partner factories and also find new potential prospects. If you are already doing business with China, or just starting, this event is must-visit for you. Here is some advice from our CEO on what tasks you need to do at Canton Fair and how to get the best prices for your purchases.

1. Have a specific goal. Attendance of one phase is a quite expensive decision, which on average may cost you $2000 - $3000. If you don't have specific products that you plan to buy and you just want to be inspired by the scale of this event, the related expenditures are too high compared with the potential results. Solution: choose several lines of products (at least 5) before your arrival. Learn as much as possible about these products (description, characteristics, certifications, import duties, HS codes, preferred packaging). Surf on Alibaba to get an idea about the market prices. Write down the questions that you need to know from each supplier and determine your target price. When you will arrive at the Canton Fair: look for the area where related suppliers are, and take your time discussing with each of them.

2. Don't rush to order directly. Only if you know the industry very well, you visited all factories there and you think that you found the product with the most appropriate price/quality ratio, then you can put the order. If not, it is better to take your time. Firstly, the factories may lower their price in the future. Secondly, you can buy samples directly at the fair or have them be delivered to your home country directly. Afterwards, you can show it to your potential clients and only then put order.

3. Plan to stay at least 3 days. The exhibition area is enormous. Organizers try to arrange factories into clusters by industry, but it is not always the case and some factories from the same industry can be dispersed all over the fair. To ensure that you really found the best conditions, you need to have a look at all parts of the fair and discuss with all concerned suppliers without being in a hurry. Make sure that you wear comfortable shoes, because you will walk a lot, really a lot.

4. The best isn't always in the centre. The middle stands are occupied by the biggest suppliers, who have already established their reputation and are in the position to charge higher prices. On the other hand, the extreme parts of the exhibition are occupied by smaller companies who have higher interest to attract customers by proposing interesting prices. Make sure that you didn't forget to visit the edges before you made final decision.

5. Don't start with the price. For Chinese people trade is not only about money, it is also about relations. At first you can talk about the product itself, make some remarks, show your interest to the supplier's production. Then show your expertise in the trade: ask about the factory, their certifications, closest port, conditions of shipment. Only then can you ask about the price.

6. Negotiate. Never accept the first price. Negotiation is an important part of Chinese culture and it is also an integral part of the process. The supplier knows it and gives you prices with higher margins that you may decrease through negotiation. Provide logic arguments explaining why you want a cheaper price. Insist on the fact that you will buy regularly in big volumes. Remember that when you are the buyer, the negotiation process is much easier. Suppliers understand that if you don't buy from them you will probably buy from their competitor, so you can leverage your winning position.

7. Look Presentable. You need to make a good first impression in order to get the best proposition. When you come in slippers and shorts, suppliers will not take you seriously. This is a business negotiation after all. Don't be afraid of the humid climate in Canton. Even during the Spring Session, the temperature can go up to 34°C. Inside the fair however, it is pretty cool with the temperature around 20°C. This first impression plays a very important role in the construction of your future business relations with the suppliers.

8. A Chinese translator is recommended. Even if you have a good level of English, it doesn't mean that the suppliers do. Often you will find suppliers with a very low level of English. So the services of interpreters are quite useful in the negotiation process. By paying for an interpreter, you can save money on your future purchases, so it is win-win expenditure. In addition, it makes a better impression of you as it shows that you are a serious buyer and you have came to the Canton Fair with the intention to do business.

These are the main points that you need to pay attention to. If you have any other questions, feel free to contact us. We, at ExterneXXI, also have a special service package designed especially for the visit of exhibitions in China in order to facilitate your business trips. You can find the full proposition HERE.