When people ask me if the quality of China-made products has improved over the past 10 years, they expect me to say "oh yes, certainly". However, the reality is not that simple. I think an interesting approach is to divide the market in 3 wide categories where the reality is quite different. In the end, the conclusion is simple. If buyers can't tolerate bad quality, then they will get better products. Whether in China or somewhere else. If they can tolerate a substandard batch from … [Read more...]

Dirk Dusharme, editor in chief at Quality Digest, wrote a well researched and thoughtful article about the progress of China's manufacturing sector, the challenges it faces, and what importers should do about it. Part 1 ('China’s exploding middle class drives improvement') focuses on the trend for better quality. It rightly points out that certain brands have emerged (e.g. Huawei, Oppo...) and are competing successfully on non-price factors with the best foreign brands. And, at the same time, … [Read more...]

I often ask potential hires "what is quality?" and it seems even people who've been in the quality assurance industry for 10 years don't have a ready answer. It seems like I am not the only one. Here are the most common responses gathered by the American Society for Quality during a recent survey: I guess one could argue that there are several definitions, depending how high up in the sky we choose to be: At the micro level: "meeting the customer's specifications" In a slightly … [Read more...]

I noticed that inexperienced importers tend to look at obvious signals (prices, response times, quality of English...) when communicating with potential suppliers. But they often overlook the location of the factory. The export manufacturing industry really emerged in China in the early 1980s in Shenzhen. For example, most office buildings that are in the Huaqiangbei area used to house manufacturing operations. Then the exporting factories went to Dongguan city, to the rest of Guangdong, to … [Read more...]

Many small businesses plan to buy products in China and sell them on Amazon as a Third Party Seller. It can form the basis of a strong, profitable business. But there is very little tolerance for quality issues. We did a simple simulation of the impact of a serious quality problem (50% of defective products) on the importer's profitability. This simulation is based on the assumption that you get the goods in your warehouse and that you check 100% of them. However, most Amazon Third … [Read more...]

The Changzhutan, a Chinese newpaper, just revealed one more food scandal. Most details have been translated by The Nanfang Insider into English. 1. The facts Most street vendors sell beef and lamb meat-on-a-stick at the same price. It's actually all beef meat. How is the beef taste masked? "By marinating and seasoning it with lamb flavoring agents". Why? Because beef meat is much cheaper than lamb/sheep meat. It will not come as a surprise to those who follow daily news here. For example, I … [Read more...]

A few weeks ago, in Will 3D printing replace China mass production?, I concluded that we would see no disruption of mass production in the coming 5 years -- in spite of all the examples the press might find. I just read a book called 3D Printing - The Next Technology Gold Rush: Future Factories and How to Capitalise on Distributed Manufacturing, written by Chris Winnan. And I am getting more excited about this technology. This book describes the way 3D design and 3D printing are already used … [Read more...]

Two days ago I was listening to a few Chinese factory managers who were invited to a Global Sources forum, and one hot topic they discussed was 3D printing. They see 3D printing as a potential disruption to their business, but in a time horizon that is quite unclear. This concern makes sense. There is strong overlap between the categories where China is more competitive than other low-cost Asian countries (DIY, power tools, toys...) and what can be easily 3D printed. A few words about the … [Read more...]

Chinese manufacturers feel the pressure of competition. Those based in Guangdong are up against the lower costs of other provinces. And, in certain industries, they all face the lowest costs of Vietnam, Bangladesh, Pakistan... A new article from Global Sources (Guangdong suppliers emphasize OBM, R&D to maintain competitive edge) relates the strategies of a few manufacturers for maintaining their profits: Pushing their own brand To stand out from their competitors, many manufacturers are … [Read more...]

It is no secret that Chinese people are very sensitive about their country's image in the rest of the world. The 2008 Olympic Games were supposed to make everybody forget about the 2007 product recalls. They had plans for an ad campaign to promote Mode-in-China goods, but it was delayed by the tainted milk scandal. Last week they finally launched an ad campaign (h/t 2point6billion): The 30 second ad was initially launched in CNN Asia with the theme ‘Made in China. Made with the world.’ In it, a … [Read more...]