Interacting with Chinese manufacturers

Here are some interesting or useful articles that I found recently.

Choosing A China OEM Manufacturer: A Practical Guide

Steve Dickinson suggests some non-conventional ways to spot fake factories (trying to put up a show and impress naive buyers) and inadequate factories (trying to appear better than they really are).

These are good tips. As a complement, you can read an article I wrote before on the same subject.

Importing from China: Ways to Assure a Smooth Order

Jacob Yount gives us a list of routines that will help eliminate a lot of hiccups in the importing process:

• Educate the supplier
• Ask for proof
• Speak in Bullet Points, Pictures, Samples and Facts

These are good points, that certainly help in the interaction with suppliers. I would just add “go on site to really understand the situation”.

How To Stop China Counterfeiting, Or At Least Reduce It.

Dan Harris recommends 4 solutions (to be pursued together) for brands that want to limit counterfeiting:

1. Reduce risks that your manufacturer himself sells products through a back door
2. Register trademarks
3. Monitor marketplaces
4. Put pressure on the seller (they run legal risks in China, so this can be effective)

Upscale China fast replacing cheap China, says author Shaun Rein

Shaun Rein had made himself famous with occasional over-the-top positions on sensitive subjects. In this interview (and his book), he explains why China is getting more expensive and why importers should try hard to source from a second country.

Unfortunately, labor costs are also on the rise in other Southeast Asian countries (see End in sight for Asia’s cheap labour). Not to mention political instability in Egypt, PR risks in Bangladesh, and so on.

Japanese carmakers turn to Chinese parts for China market

The strong competition on price on China’s car market is driving auto makers to use cheaper parts, made of cheaper materials and not as durable (extreme example: a visor that melts in the sun).

The same phenomenon is at work in many price-sensitive markets in the US and in Europe. Retailers refuse to increase prices, and it forces importers to cheapen their products.

A new brick in the Great Wall

According to the Economist, “China has plans of its own” when it comes to the 3D printing technology.

It would be funny if a Chinese university made a big breakthrough, if Western companies reverse-engineered and copied it, and if Western producers used it to make products in small series (on an as-needed basis), resulting in a drop of imports from China.

Nesting challenges await reshoring manufacturers

Global Sources did a bit of research, and makes a list of difficulties awaiting American companies that decide to “reshore” production. If you are tempted by this solution, make sure to read this article.