We began our venture with high hopes, establishing a sourcing company in the vibrant city of Shenzhen this past spring. Previously, I had successfully launched EnterChina.ru, a Russian-language website for equipment supplies from China, using content marketing techniques. I wrote regular articles and, upon moving to China, added paid contextual advertising. The response was overwhelming, to the point where we had to pause the ads. Even now, though less frequent, inquiries keep us busy.
In addition to this, I’ve been working on two other websites: Texterra.biz and DSconsult.pro. These sites cater to different needs. Texterra.biz offers consulting services like company formation in China, translation services, and factory inspections. DSconsult.pro, an English-language site, presents our services as an engineering firm. With little traffic so far, I use these sites to blog about my experiences and practice my English, serving as a personal journal and a record of our challenges.
When Misha and I first met in China, we were filled with enthusiasm. My expertise in digital marketing and Misha’s linguistic skills and adaptability seemed like the perfect combination. We quickly set up an office and hired our first employees. Our Russian website brought in numerous applications. Yet, from the very start, we faced problems that we initially ignored, which have now evolved into significant issues.
Issue #1: Clients Unwilling to Pay for Sourcing Services
The typical client request goes like this: find a supplier for specific equipment, and if the price is right, they will buy from us. Our Chinese team begins searching, often with incomplete technical specifications. Chinese manufacturers are reluctant to quote prices without knowing order volumes and frequently insist on face-to-face meetings before discussing prices. Russian clients don’t understand this. They assume that being in China means instant access to comprehensive price lists. We trusted our clients and searched for free, wasting a lot of time without securing deals.
Issue #2: Cultural and Communication Barriers
Navigating business with Chinese suppliers requires a deep understanding of local customs and business etiquette. Building personal connections and trust is crucial in China, often causing friction with our Russian clients. For example, in-person meetings are often necessary to confirm deal details, obtain price lists, or establish initial contact. Many Russian clients don’t see the need for this and assume everything can be handled via email or phone. This leads to delays and complications in our work.
Problem #3: The Illusion of Omnipotence
In our modern era, we have fallen into the trap of believing we can master every domain. Our operation has become emblematic of this fallacy. Requests flood in—from industrial compressors to truck parts, to fabric metallization equipment—and we undertake each task with equal zeal. Yet, this lack of specialization is our Achilles’ heel. Expertise in one field does not translate into omniscience across all fields. The search for an industrial compressor, for instance, is not a quest for a generic item; it is an exploration into a labyrinth of variations—volumetric and dynamic, piston and screw, oil-lubricated and oil-free, stationary and mobile. Each type possesses unique characteristics—final pressure, application domain, productivity, drive types, cooling systems, and more. To navigate this complexity, one requires either precise technical specifications (which we seldom receive) or profound expertise in the field.
Problem #4: The Financial Labyrinth
Even when a client is prepared to pay for our services, the financial pathways are fraught with obstacles. Cross-border payments, especially from Russia, have become an intricate dance through third-party countries, each step exacting a toll. The costs of these convoluted transactions render the entire endeavor unprofitable. Thus, the promise of payment becomes a mirage, dissipating upon closer inspection.
Problem #5: The Paradox of Abundance
The Chinese market, a microcosm of global capitalism, is a battleground of fierce competition and relentless price-cutting. Companies abound, all offering similar services, many willing to slash prices to the bone to attract clientele. Our commitment is to quality and thoroughness, yet this very commitment is undermined by the sheer volume of competitors. Clients, inundated with choices, often doubt the value of paying for our services. They perceive our efforts as no more than a cursory glance at Taobao, reflecting the practices of less scrupulous firms. Additionally, the prevalence of free supplier search services distorts the perceived worth of our work, casting a shadow over our endeavors.
In this landscape, we find ourselves at an impasse. The path forward is shrouded in uncertainty. Whether we will navigate our way out remains to be seen. I will chronicle our journey as events unfold.