I just listened to a great podcast on China's kickback culture, where Bill Dodson (who writes the This Is China blog) explains how difficult it is to avoid kickbacks. There are mainly two difficulties for foreign companies, whether they … [Read more...]
Archives for May 2010
Production in large batches in China: top 5 problems
Some really large factories appeared in the US and in Europe in the early 20th Century. The prime example is the Ford Motor Company and its huge factories. The basic idea was that the higher the number of pieces produced, the lower the unit … [Read more...]
How to decrease a minimum order quantity
One concern many small buyers have in China has to do with the minimum order quantity imposed by manufacturers. It is actually the barrier that keeps many retailers working with importers/wholesalers. But some smart importers have figured … [Read more...]
Chinese trading companies and their dirty little secrets
Before you read this post, I have to emphasize that some Chinese trading companies here--including Hong Kong--truly create value for their customers. What I wrote below does not apply to all intermediaries. But I observed it so many … [Read more...]
Refused inspections: what to do?
Let's face it, inspection companies really justify their fees when they notice and signal quality problems. If there is never a problem, no need to send inspectors. So, what to do when an inspection report shows an issue, and the buyer … [Read more...]
How to behave in a Chinese factory
In my last post (Relationships with Chinese suppliers: be clean!), I suggested that importers keep their distances with their Chinese suppliers. Do not let them think business can be conducted the "local" way, and they will take your … [Read more...]
Relationships with Chinese suppliers: be clean!
If Clint Eastwood worked with importers, he might say this: You see in this world there's two kinds of buyers, my friend. Those who are clean, and those who need to ask favors from their suppliers. What I call the "clean" buyers have the … [Read more...]
How can China-based foreigners find quality control jobs?
On Sunday, an English teacher living in China asked me how he could get involved in quality control. And more specifically how he could perform a few inspections as a freelancer, to earn more money. This is really a case of … [Read more...]
The role of reputation in China OEM business
In the US or in Europe, private companies are very careful with their reputation. They know that angry customers tell their bad experiences to their friends. Poor customer service can kill a company, and this is more and more the case … [Read more...]
Pre-production inspection: what benefits for buyers?
A pre-production inspection takes place either before production starts (usually to check inputs) or at the very beginning of final assembly. It is the least frequently used among the four major types of quality inspections for most … [Read more...]