You can hardly throw a rock in China without hitting fifty people who want to get into the export business, or who already are. A fair number of those people are going to be expats, and not necessarily the ones who work with large international companies. It doesn't require a business degree or great technical training to start up shop here, since the opportunities are as countless as the suppliers and the buyers.

One of the simplest methods of entering the industry is to start on the small business level. Many small exporters begin in their free time, and, if they are successful enough, quit their day job to focus on their business. Guangzhou is full of thousands of African immigrants – often very recent immigrants – and part of that population goes straight into exports. A few are driving nice cars today. Many are living hand-to-mouth. Let me run through how one expat friend got into business, so you can get a glimpse of one way of doing things.

At first, Bob didn't have any clear idea of what he wanted to export or sell. He immediately tried to connect virtually any buyer he could find with virtually any product. He'd advertise his services and take his clients around to various marketplaces and get a small finder's fee for his work. This routine quickly turned out to be too troublesome and time-consuming, and wasn't making much money.

However, it turned out he had a natural customer in his father, who needed glass-making machinery for his business. Bob was able to find equipment suppliers through alibaba.com, one of the many popular trading websites, and proceeded from there to check out the factory, negotiate the price, make payments and get a cut for himself. The factory turned out to be reliable, so Bob had his first regular supplier as well as regular customer, and was building a resume of sorts. This helped him gain a reputation.

From there Bob started connecting customers with the products they needed. He could track down factories either by asking questions at the marketplace or through the internet, and he could find customers through personal networking, trade fairs, or, again, on the internet. He negotiated a price between suppliers and buyers, personally met with the suppliers at the factories, and acted as a middleman for the money. It took plenty of leg-work, but Bob now has regular connections at the factories, and some buyers who know who he is. He gets himself a 2-3% commission on most shipments, but in individual cases can get more.

After less than a year, how's his business? Fair. It's a salary supplement, but not good enough to quit the day job.

Working out a good price between supplier and buyer is an important part of the process, but unlike regular buying, it's not necessary to talk down the price. To begin with, most factories already offer quite low prices, and besides that, you do a good job to build factory loyalty if you don't try and drive down their prices. The only time Bob really asks the factories to drop their price is if the client truly isn't satisfied with it. Bob's cut is negotiated separately, so he doesn't have a financial interest in the price itself. He wants to keep the factory happy, and he wants to get a fair price for the client.

Another important thing for his clients, and for his reputation as well, is making sure he has a good look around his supplier's workplace. They need to look like an established, well-run operation. The boss needs to seem like a reputable person. If things look fly-by-night, he won't do business with them. Payments, or sometimes only deposits, are made before shipments are ever sent out, so trust always comes into play.

Basically, all of Bob's work is in some kind of middleman position. Like any middleman position, you run the risk of getting cut out of the game once someone decides that they can and will do your job themselves. However, many people stick with you anyway as long as you're doing a good job. Why? Because you are right there on the ground, because you already have some quality contacts, because you've already proven yourself efficient and honest, or simply because they don't have the time to do your job.

More than a few overseas companies have been ripped off completely, in part because they didn't even know whom they were dealing with, or had only been to see the factory once. If you provide them with a better overview on the ground, you are providing them with a valuable service.

If you are willing to put in the effort to establish yourself, you can do this too. The opportunities for entering the export arena, as busy and crowded as it is, are many regardless of your education. Be sure of a few things, though: Chinese language will nearly always be necessary, and if you don't have the skills, then find a reliable partner who does. Also, there is plenty of leg-work to be done. If you're not willing to get to know the people you are buying from, you're asking for trouble. Spend time at the factories, ask them plenty of questions, even get to know them personally. Even if they're honest business people, a long-term working relationship can be much better for the future than a one-time deal.

Another way to work in the export industry, in case you are turned off by entrepreneurial risk, is simply to work for the companies themselves. This will usually require some specific education and, sometimes, experience. A lot of expats are not so keen on nine-to-five work, or on personal grooming either, but if you are then this is the route for you. I spoke with a Chinese export company (one of a limited number which hire foreigners) and this is what the secretary told me about their job positions for foreigners:

Manager Assistant: Should have experience in import/export or in sales, and should be skilled with communication. Being presentable is also a plus.

Foreign Trade Clerk: Should have good communication skills, good coordination capacity, and be self-motivated.

Logistics Administrator: Should have a Bachelor's degree in Logistics or in Foreign Trade, as well as experience in logistics and customer service. Knowledge of import and export procedures would be a plus. Also, should have good communication and negotiation skills.

As you can see, the first two positions do not even have an education requirement. That's good for you if you have little business training. Their typical salary? 6,000-10,000 RMB to start with.

Of course, the kinds of job positions out there in the export companies vary greatly, so it's best to have a look yourself. This is only a sampling.

One last thing: Larger companies do their own product development, and pay more than the one I spoke with. Product development work usually requires some kind of engineering education, and, typically, experience in the field. If you have a technical degree, it won't go to waste in China.
 

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