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Dangers of Amortizing Development Costs in the Production Price

October 9, 2020

Dangers of Amortizing Development Costs in the Production Price

When I offered a model for guiding buyers to choose an ODM vs. OEM vs. CM supplier, I mentioned that OEM suppliers often "subsidize" the cost of developing the new product. Then, the buyer ends up paying the cost of development, but it is "amortized" in the unit cost of the product. I'd like to explain why, in the context of when manufacturing a new product, that can be dangerous for the buyer. … [Read more...]

Filed Under: New Product Development Tagged With: new product development, new product development costs, new product development process, new product launch, NPI

From New Product Design to Production: What Is on the Customer’s Plate?

September 9, 2020

From New Product Design to Production: What Is on the Customer's Plate?

Many people contact us with an idea for a new product they want to develop... and nothing else. We usually explain that they are not ready for talking to China-based manufacturers until they have done more 'homework'. Over the weekend, I listened to an episode of the Predictable Design Podcast (The Importance of Defining Project Milestones), which covered the main steps every new company that wants to manufacture a new physical product has to go through. It is a great listen. It inspired … [Read more...]

Filed Under: New Product Development Tagged With: developing new products, new product development, new product development process, new product launch, new product manufacturing, npd

New Product Concept Brief: 5 Things Your Industrial Designer Needs To Know

June 9, 2020

New Product Concept: 5 Things an Industrial Designer Needs To Know

If you have a new product concept that you want to manufacture in China in mind, don't go straight to talk to a manufacturer (your concept is still too immature). Instead, you need to start working on 2 axes at the same time: Market demand confirmation - will a sufficient number of people want to buy your product? Industrial design - what will it look like? (I am assuming you are designing an electro-mechanical product.) To illustrate your product concept effectively, you'll be … [Read more...]

Filed Under: New Product Development Tagged With: developing new products, new product development, new product development process, new product launch, new product manufacturing, product concept, product design brief

6 Tips To Nail Your Hardware Product’s Concept BEFORE Engaging A Design House

May 18, 2020

6 Tips for BEFORE Engaging a Design House for your New Hardware Product

Many people have an idea for a new hardware product and call us, and in many cases, it is too early, and going to a design house now may also be too early! They need to work with an industrial designer. (I am thinking of electro-mechanical products here.) The logical steps are in this sequence: a. Concept > b. Aesthetic Design > c. CAD Design > d. Proof-of-concept Prototype > e. Work-alike & Look-alike Prototype So, getting the concept right is important. Here are 6 ways to … [Read more...]

Filed Under: New Product Development Tagged With: design houses, new product development, new product launch, new product manufacturing, product concept, product specifications

Bringing an IoT Product from Concept to Market: Case Study

May 6, 2020

ahera osia band and smartphone app

We've been fortunate to help Ahera develop their OSIA IoT smart band from concept to prototype and to get them prepared to take the next steps (tooling, certification, preparation, production). It is actually a great case study for entrepreneurs planning to develop their own product and manufacture it in China, so I thought it would make for an interesting article. Ahera is in the middle of an Indiegogo campaign these days. I went to interview their founder, Rudy Bottin, about what it took to … [Read more...]

Filed Under: Develop a New Electronic Product in China, New Product Development Tagged With: crowdfunding, fitness, hardware startups, indiegogo, IoT, new product launch, new product manufacturing, product development, prototyping, wearables

7 Typical Pitfalls for Hardware Startups Producing in China

December 19, 2019

Typical Pitfalls for Hardware Startups Producing in China

A few years ago, I remember reading about the Coolest Cooler, a nice product that raised an amazing amount of money on Kickstarter: over 6,000 people bought it for a total of 13 million USD!! Yet, they went bust leaving a lot of frustrated backers and interested onlookers scratching their heads as to where it all went wrong for one of the most famous hardware startups of recent times and indeed the most funded Kickstarter campaign of 2014. In this post, I'll explore what went wrong for them … [Read more...]

Filed Under: New Product Development Tagged With: cautionary tales, coolest cooler, crowdfunding, crowdfunding failures, developing new products, electronic hardware products, entrepreneurs, hardware startup, hardware startups, inventors, kickstarter, new product launch

The Danger of Developing your Custom Product with an ODM Factory

March 1, 2019

The Danger of Developing your Custom Product with an ODM Factory

We often talk to people who have a great idea to improve on an existing product. They have thought of special features that differentiate it from the competition, but they see a large amount in front of them, to develop their own new product. They are often tempted to go for a shortcut: working with a manufacturer that has been making very similar products (an Original Design Manufacturer, or ODM), and that's when things get pretty risky for the buyer. … [Read more...]

Filed Under: New Product Development Tagged With: new product development, new product launch, odm, Original Design Manufacturer

Making Prototypes In China: 5 Key Steps And Objectives

July 2, 2018

Making Prototypes In China 5 Key Steps And Objectives

By Fabien Gaussorgues Are you going to manufacture a mechanical and/or electrical product in China? This article will help you plan for the steps to follow. You might need a concept of the product, to show investors and to launch a Kickstarter campaign. You might need a prototype that is close to the final version of the product, in order to run testing (including usability testing) and validate the design before going into production. When making prototypes in China, the usual … [Read more...]

Filed Under: New Product Development Tagged With: China, new product launch, prototypes

Example of Indiegogo Project Made in China: NAOX

June 11, 2018

The number of new products to be launched on Kickstarter or Indiegogo has grown very quickly. It seems not a week passes without a start-up team contacting us over at Sofeast for either developing a new product or for help on their production in China. Some projects are very successful and raise important amounts of funding on these platforms. Most projects raise more modest funds and don’t receive much publicity. However, some are worth studying. Not just because their products can be pretty … [Read more...]

Filed Under: New Product Development Tagged With: China, hardware startups, new product launch

Helping a Chinese Factory Improve While Still Holding Them Accountable

May 15, 2018

Helping a Chinese Factory Improve While Still Holding Them Accountable

You might discover that helping a Chinese factory improve makes sense if you have quality requirements that are challenging to one of the factories you work with, or if you are working with them to develop a complex new product. Actually, it sometimes makes very good business sense. Spending 10,000 USD might save your company 1 million USD in the end! And yet, there is a point where you can't keep "helping" them all the way, as they start to take the habit of being "baby-sat" and they … [Read more...]

Filed Under: Sourcing New Suppliers Tagged With: chinese factories, chinese suppliers, new product launch, pilot runs, supplier improvement

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Weekly updates for professional importers on better understanding, controlling, and improving manufacturing & supply chain in China.

This is the official blog of Sofeast.com.

This blog is written by Renaud Anjoran, an ASQ Certified Quality Engineer who has been involved in Chinese manufacturing since 2005.

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