Here are links to the interesting articles I found recently.
David Dayton gives us a checklist to go through before deciding to have something produced in China.
I wish more people took the time to ask a few questions before going ahead. For example, I am amazed at how many Kickstarter projects plan for manufacturing in China.
Hey startup guys, don’t you know that it is always longer and more expensive than the first quotation promises? Have you thought of the alternatives?
3 China sourcing traps to avoid
Etienne Charlier shares a few pitfalls to avoid.
I see a lot of mistakes #1 and #3:
- Coming too fast to China, after deciding it is necessary for the company’s competitiveness/survival. The first order should be relatively small because many mistakes will be made! Only increase the volume once you have a system in place.
- Never fully committing to producing in China. Wasting suppliers’ time. Letting projects drag on and on. Finally, the suppliers get the message and stop responding.
Chinese counterfeits: How to beat the cheats
This article tells the story of an electronic product that is made in China, that got very popular, and that naturally became copied quite quickly.
The company behind this product explains what it does to reduce the risk and the impact of counterfeit products. Interesting example.
Cheaper, Better Robots Are on the Way, But Who Will Benefit?
The author describes the new generation of small robots that will probably become popular in many factories.
I noticed that Chinese manufacturers have an attraction for technology that makes them overlook all the simple and inexpensive measures they can take (designing the right jigs, training their staff…). Robots impress and reassure most purchasers. Expect to see more and more of them!
China exports shift to higher value goods
Etienne Charlier reminds us of a few statistics:
- China exports keep increasing, even if at a slower rate;
- An increasing number of machinery suppliers export their products;
- China is gaining significant worldwide market share in complex goods such as telecommunication network equipment, harbor cranes, renewable energy, etc.
Conclusion: don’t see China solely as a producer of low-cost products
—
Do you want to receive my next articles in your email? Setting it up takes 10 seconds:
According to Harry Moser (promoter of the Reshoring Initiative) rushing to producing or sourcing in China is one of the key factors leading companies to reshore to US later on.
This cannot be cheap to do. First moving to China with all the travelling involved, then bringing back and possibly some unhappy customers as well. So, your advice is really good: “do not rush”. Do the homework first. And when you decide, use the proper expertise on the ground to get it right.
And thanks for the two quotes.
Right! It is a heavy decision and should not be taken lightly.
Lots of companies in Europe and in the US have “burned their bridge” (closed their factory) when they came to China, and now they are regretting their decision.