Grant Fidelity receive emails frequently from people all over the world, asking us about Chi-Fi (Chinese HiFi), who is reliable vendor and which brand is better etc etc..Well, I cannot answer all those questions about ‘other vendors’ and ‘other brands’ that Grant Fidelity don’t deal with, but below is my 15+ years of hands-on experience buying and selling Chi-Fi.
Please note: They are MY personal guidelines for shopping Chi-Fi, as if I were a western consumer who doesn’t read or understand Chinese, but is intrigued by the Chi-Fi pricing and features read on internet.
Rule #1: Know what you are buying.
When you buy a piece of high fidelity tube audio equipment, you are NOT just buying a sum of ‘transformers / capacitors / resistors /faceplates /chassis / vacuum tubes’.
You are buying a sum of ‘Proprietary audio design + manufacturing by assembling transformers / capacitors / resistors / faceplates / chassis / vacuum tubes + Pre-sale consultation + After-sale warranty + Repair service after warranty + Future resale value’.
Let’s go one by one so you understand why Chi-Fi is cheaper than western brands:
| Pricing components | Western Brand | Chi-Fi |
| Proprietary audio design | Yes. Copy other people’s design is against IP law in the western world! | Not necessarily, except very few brands. Many Chi-Fi brands ‘learnt’ some design from OEM for western brands, then transplanting those design ideas to their own products. Some were implemented well, others terribly wrong as they didn’t fully understand why such design was done in the first place. Design is a wholesome art, not just putting pieces together. |
| Labor: assembling parts to final products | Expensive, if produced in western countries, for complying with western labor & environmental laws. | Much cheaper. Labor was much cheaper before, but not as much now. Environmental laws are often circumvented by some manufacturers. Be mindful that not on one side criticizing Chinese environmental problems and labor rights, but on the other side paying low price to reward those manufacturers. |
| Transformers | Usually outsourced not wound in-house. But transformer design might be proprietary to the brand. | Good Chinese hi-fi brands always wind their transformers in house, because they NEVER fully trust suppliers swapping for lower grade copper, recycled steel core, or not damping the transformer with the right quality material! If a Chi-Fi brand uses outsourced ‘made-in-China’ transformers, final quality is very very questionable. Many cheap Chi-Fi you see online use outsourced transformers that can be under rated, overheat with time, or simply fail in much shorter time than a good quality transformer should last. |
| Capacitors / Resistors | Western brands if made in the west, are EXPENSIVE. It’s simple economics – employees in western countries have to be paid enough to afford western lifestyle that westerners are accustomed with. | Chi-Fi uses lots of western brand caps / resistors, but often use those brands that has OEM in place in China and supply directly to Chinese market. Counterfeits are plenty on the market which looks almost 99% the same, but it’s NOT the real thing. Or, it is the real thing, but OEM factories didn’t pay the western brand royalties for marketing with their brands, and ‘such branded products’ flew out of OEM factory backdoor to the market for cheaper price. This is NOT ethical business practice and should NOT be supported by western consumers. |
| Faceplates / Chassis | Expensive if made in the west. Also expensive if made-in-China then ship to the west to assemble, due to international shipping cost and tax & labor expenses. | Cheaper. These types of suppliers are often small shops who respect no environmental regulations, pop up and disappear if they are fined by local government. It’s an ongoing ‘catch me if you can’ game. Overall, environmental regulations are getting tighter in China and cost is rising significantly, but still cheaper than made in a western country. |
| Rubber feet | If made in the west, it’s likely ok and won’t be a health hazard. | If made in China and the brand is not well known with established branding and reputation, change them out right away! I found many low priced Chi-Fi use cheap rubber feet that are made with recycled rubber. They not only leave an oily stain on your pricy equipment rack, but also gives out a nasty smell – VERY BAD for health! |
| Vacuum tubes | If manufacturer screens tubes themselves before putting into their amps, likely they throw out the bad half and keep the good half. So tube cost at the end will likely double. It will often cost more to return those bad tubes to Chinese tube factory than simply throwing them out. | Chi-Fi uses Chinese tubes. If there are not-so-good-quality tubes, they quickly return them to Chinese tube factory to swap for a new batch. Because Chi-Fi is made in much larger quantity for a larger Chinese market, they get cheaper pricing on tubes from the tube factories, than their western counter parties. |
| Pre-Sale consultation | Yes, usually done very well. It was priced into the product and conducted by dealers or manufacturers with in-depth knowledge. | Not as much. Not many HiFi dealers in China are as knowledgeable as dealers in the west. Dealers there are primarily ‘vendors’ who has enough financial dough to stock up expensive HiFi inventory (which is often required by Chinese HiFi brands to get dealer status) , rent prime location retail storefronts and hire ‘price quoting, and brochure repeating’ sales clerk to keep retail operation going. |
| After-sale Warranty | Yes. It was priced into the product and conducted by combination of dealers & manufacturers. Consumer rights are well protected by regulations. | Yes, but it was only priced for warranty conducted inside China – ie. Chinese domestic shipping cost, Chinese domestic repair labor. This is much much cheaper than what such activities will cost if they are conducted by a western service provider, or a western distributor or reseller. Be prepared to pay extra 15% or higher if you expect your western reseller to offer a local warranty. |
| Repair service after warranty | Available from manufacturer or specialized repair service provider. For extra ‘parts and labor’ cost. | Available from Chinese factories, but international shipping cost will kill it, let alone dealing with Chinese customs. Chinese customs do NOT allow import ‘used goods’ into China. You should buy from authorized sources and try to obtain factory schematics for your own record, in case you need it down the road. Repair service can be done by western service provider of your own choice, as ‘Pay as you go’. But some very badly designed Chi-Fi is not repairable – they have to be redo entirely to operate well for long term. |
| Future resale value | If 2-3 years used, you usually can get 60% of full retail price for a well known well marketed western tube amp brand. Buyer will have some peace of mind for future repair service availability. | Because of the lack of after-market service by the Chi-Fi manufacturer in the western world, resale value is encumbered in this aspect. But you get a lower price on Chi-Fi to start with! If 2-3 years used and you bought it at ‘Chinese domestic retail price + international shipping cost’, you can price it for 70% of the Chinese domestic retail price you paid, but not on the international shipping cost. |
| Dealer Margin | Built into retail price as per cost of doing business in the western world. Usually starting from 40% of retail price. | Built into Chinese retail price as per cost of doing business in China (which is cheaper). Usually starting from 30% of Chinese domestic retail price. Please note this 30% margin isn’t enough for a western full service dealer to operate a normal high end audio business, and provide all services a western consumer feel entitled to. |
| International distributor margin | Built into pricing if the brand was from another western country. | The internet Chi-Fi price you see on eBay or other Chi-Fi website doesn’t include international distributor margin – it is simply Chinese domestic retail price + international shipping. So expect to deal with problems on your own since there is no middle-man who has been paid to solve those problems for you. You have to pay to get these problems covered by someone for an extra cost. |
I hope the above will equip you a little bit better when shopping Chi-Fi online, and have your expectations set right, knowing exactly what you are buying and what you have paid for.
It’s always true that ‘You get what you have paid for’. If something is too cheap, it’s likely someone, somewhere in the supply chain, has cut corners – then usually the bargain hunting buyers will have to pay extra to get it right later on.
Happy Shopping!
Rachel @ Grant Fidelity