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 into 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 … [Read more...]
Progress and Challenges of China’s Manufacturing Sector
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...]
What Does Quality Mean to Chinese Manufacturers?
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...]
Maturity of Manufacturing Areas in China
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...]
Amazon Does not Tolerate Low Quality Chinese Products
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...]
An Interesting Example of China Quality Scandal
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...]
The five types of product TESTING laboratories in China
A few months ago, I wrote a list of testing labs that has proven helpful to many importers. Today I want to give a bit of perspective on the different categories of laboratories. Let's start with the ones you have probably heard of. 1. The big third-party laboratories Who hasn't heard of Bureau Veritas, SGS, Intertek, or TUV Rheinland? Their consumer testing divisions tend to focus on big retailers and on the importers that sell to these retail chains. They are the best option in … [Read more...]
How 3D printing can alter product design for superior performance
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...]
Will 3D printing replace China mass production?
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...]
How can Chinese manufacturers differentiate their products?
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...]