Saudi Commercial Broker Salim Al-Masrahi reveals facts about Saudi traders.
Engineer Salem Deifallah Al-Masrihi resigned from the Saudi Aramco Company in 2001 to devote himself to the trade, this step was preceded by the opening of the first coffee shop in the Kingdom, offering internet service in the Dammam Corniche in 1996 before the official entry of the Internet into the Kingdom, where the service was provided by contacting the State of Bahrain and the one hour was then sold for 50 Saudi riyals, and after the entry of the Internet to the Kingdom and its easily availability, and the growing number of cafes; he decided to sell the coffee shop and went to the activity of commercial mediation and decided to devote full time to it and established in 2001 as an individual mediation institution, the work began with three international offices in Beirut, Florida and Zengzhou City, China. The company was expanded into a trading group consisting of several specialized brokerage activities to open another office in Yiwu, China.
(Al Jazeera) met with Eng. Salem Al-Masrahi in a dialogue to reveal the secrets of trade with China and offers through his experience what he says “ is important guidance represents the road map for each investor or willing to deal with China, and even who want to import personal things for use such as furniture hardware and equipment”. The following is the text of the dialog:
- “As a trade intermediary with one of the world's most famous multi-industry countries, we would like to give us an overview of the import from China? “ - “ Import from that country began with the influx of Chinese Muslim pilgrims who were attending some goods and selling them for financial gain, from here, the first traders in the Kingdom began to deal with China, where there are well-known traders in the Kingdom have known goods, and to remind only (the famous Chinese melon jam” brand Maling “ brand as well as beans) this jam imported from China and has been for more than 45 years without interruption, also bright trades in the Kingdom has been and still importing from China various goods without any complications. “ - “Some talk about some of the complications that accompany the process of import from China ... What is your comment? “ - “The general public sees it as a complex and very difficult process. For experienced people it is smooth and does not require much effort. The import routes are numerous and are often done through Arab intermediaries, as well as Chinese speaking Arabic are officially licensed or unlicensed and there are a large number of individuals from several Arab countries based in several cities, most notably the city of Guangzhou and the city of Iwo and the problem is the lack of credibility and professionalism of these offices and individuals if the customer reconciled honest broker involved in his lack of professionalism in terms of accuracy in the fulfillment and implementation Business Process on Demand.”
“ What services do you provide through your office and how do you value the Chinese imports to the Kingdom?”
- “We do our work in a different way than what is common. We are a mediation office, but not in the usual meaning, because import mediation means mediating the purchase of goods only, and if so, it is easy to calculate the values of imported goods, but we work in a different way and keep the confidentiality of our customers information for many logical reasons we will address later, we are working on several important things. Import comes in the last position in terms of the importance of the services we provide through a sophisticated system called CSR and means representation of commercial services, through this system, we connect the customer who wishes to deal with various sources of goods, commercial, industrial, agricultural, real estate and other services in China with our office, directly through voice and video communication via video conferencing through the Internet, where the customer directly describes and connects his application with our office in China. When the customer formally participates in the membership of the system of mediation and import .”
“ CSR (CSR Client)Thereby enabling it to benefit from a range of unique and unprecedented services.”
We import the worst
- “Some consumer opinions about Chinese products describe them as bad and others consider them the best. How do you look forward to this referendum through your close knowledge of the Chinese product?” - “Chinese quality ranges and varies according to the customer's request. There are (5 grades for quality) starting from the best specifications, category A and even the worst category E. Unfortunately, most Arab traders ask for the worst products. I saw Chinese traders carrying samples of goods from our local market. And ask the factories to explicitly copy this product and use the worst existing materials and cheaper in order to sweep the market at the cheapest price and to achieve the highest possible gain without regard to the low quality, therefore, it is regrettable that the reputation of the Chinese product is very bad in the Kingdom and the Gulf countries, while all the brothers who studied in the West and specifically the American market know that most of what is sold in North America is a Chinese product made with high quality and excellent specifications for a longer life. The American market of Chinese products is the first class only, according to American standards, because the authorities there are decisive and there is no room for complacency and pass goods with second and third class to Europe, while most Arab countries are only asking for the fifth class and slightly the fourth class. More recently, some traders have begun importing Chinese goods with excellent manufacturing grades, but unfortunately, they have set very high profit margins of up to 200 % sometimes.” -“Recently there have been many offices of trade intermediaries from China. What is the secret behind this?” -“ The presence of these offices is necessary because prices in China always remain the best and cheapest compared to any other markets in the world for several reasons, most notably the low cost of living in China, as well as cheap labor and low wages, and it is enough that China manufactures parts of the main aircraft of the European Airbus, but I advise these offices not to Overpriced." -“ What do you recommend to those who deal with unreliable people who market themselves online?”
-“ I will respond to this question with a story that I know personally one of the brothers in one of the regions of the Kingdom got something unfortunate! He asked us to import evening clothes and underwear. We explained our order and sent the contract picture. But he didn’t like our system. He said, "How can I pay you in advance and I do not know you?", we told him that we are present and officially licensed to work by the competent authorities and we have legal status, he said,” It does not suit me “, He decided to do the job himself and contacted a person who lives in China from the Arab nationality of a neighboring country over the Internet and conducted dialogues and discussions until the person convinced him that he has his request and asked him to transfer a hundred thousand dollars value of the transaction to his personal account, and after the conversion disappeared this person and canceled his mobile number, he called us again regretfully and said, "Please help me bring him because you are officially in China and he said, 'I should hear your words from the beginning.' - “ You get a commission of 10% Do not you see that it is high compared to other offices?” -“ As I told you our office works in a completely different way and there are a lot of customers resent when they know that the proportion of our commission is 10% they quickly deal with us when they know the reasons for the fundamental demand for this ratio, brokers usually take between 1 and 5 per cent commission, but often this broker agrees with the source of the goods in China on another commission (the commission is multiplied), some of them go to take only 1% in this case, for example the client's invoice issued is imposed fifty thousand dollars and the mediator adds $ 10,000 or more without regard to conscience or religious values. While we practice professional mediation in which there is no room for questioning and manipulation.” - “ Do you have guidelines for how to invest in China?” - “ Yes, as I said most people think that China is a market for import only, while there are huge commercial and industrial opportunities and various real estate, and we are ready to provide these services according to our system for those who wish to traders, the real estate market there is open to all and its rules and conditions and laws governing the real estate market For us (as foreigners) is easier than all the laws in the Arab countries and the rate of return is excellent, it is enough to buy the property and keep it for several months and sell it with a gain of not less than 60%.” - “ What is the case with the movement from Saudi Arabia to China?” -“ In addition to China's import of Saudi oil, it is a country the size of a continent that absorbs a lot of materials and products. I will give you an example. A customer who wants to export dates to China came to us and advised us to export chicken legs because the chicken legs were the first favorite meal in China. The study proved that the profit project returns at least 200% because the chicken legs are not used in the Kingdom and he is now in the final stages and will start soon.”
- “ What goods do you import from China?”
-“ All kinds of goods without specification ,the world recognized that China is the factory of the world even our Saudi market it’s importing now from China various kinds of equipment and devices.” - “Want to write us a successful recipe or road map for anyone who wants to trade with China?” - “ If you want to furnish try as much as possible to go on your own. If you want to fully furnish your house from China (furniture and building materials), make sure that your budget is not less than 200 thousand riyals to feel the savings, by paying your bills of lading, insurance, customs clearance, internal transport as well as customs fees, do not forget that local furniture is customs protected to encourage local industry In other words, his customs are not 5% and his customs are 20%. Chinese people do not speak English so be sure to take an interpreter with you, and ask the hotel staff to write the hotel address in Chinese if you lost the way and you want to return to the hotel via taxi services. Do not risk buying cheap products that are harmful and the consequences of using them are expensive. Do not go to China unless you specify your request so much people goes and returns empty-handed. Do not deal with any broker who does not have written documentation of the services he provides. Do not send money through the normal transfer to personal accounts, but must send your money to the official companies."
-“ Do you have a word to say?”
- “ to Saudi Airlines, and I tell them is it possible to fly Saudi Arabia to Beijing only and leave the most important cities, Guangzhou and Shanghai? Emirates and Qatar Airways are packed with Saudis, they reach the required places and our lines are parked in the capital only.”
- “ What do you think of the margin of profit placed by traders and suppliers from China?”
- “ I'll leave the answer to the numbers. - Children's room priced in China is 1450 riyals and sold at local market for at least 4500 riyals. - Children's room priced in China 1300 riyals and sold in the local market for at least 3800 riyals. - Flash disk design of a modern youth in the form of a bracelet with a capacity of 2 GB, priced in China 42 riyals sold in the local market at least 145 riyals. - Luxury massage chair priced in China 1850 riyals and sold in the local market worth 6000 riyals. - a door of fine wood priced in China 330 riyals and sold in the local market at least 1000 riyals. - Deluxe bedroom priced in China 3200 riyals and sold in the local market at least 9000 riyals. - A very luxurious sofa set sold in China worth SR 4200 and sold in the local market for at least SR 12,000. * Luxury bedroom priced in China 3200 riyals and sold in the Saudi market 9000 riyals * A set price of SR 4200 and sold in the Saudi market by 12,000 * Luxury massage chair priced at 1850 riyals and sold in the market at 6000 riyals * Children's bedroom priced at 1300 riyals and sold in the market at 3800 riyals
News source http://www.al-jazirah.com/2008/20081019/ec15.htm