These days it’s easy to find article after article stating that manufacturing in China is on the way out. And that's true, at least partly. Vietnam, Thailand, Mexico, and Portugal have many good potential suppliers. However, China is still the best place to produce relatively complex products, especially when time-to-market is critical and when assembly requires a lot of labor. Consumer electronics is a case in point. As Dr. Zhang, research director of IDC Worldwide Robotics, … [Read more...]
New Importer from China? Beware the Credulous Foreigner Syndrome!
After about 40 years of openness, and about 15 years of 'direct trade' without Hong Kong trading companies, one might expect that foreign buyers take more precautions when dealing with Chinese suppliers. And, to be sure, some buyers do pay attention to risks. They have heard a few horror stories. They have read about common misconceptions, typical pitfalls, assumptions to avoid, and best practices for supply chain management. Unfortunately, it seems that a majority of people who haven't … [Read more...]
Quality Planning for Importers: Classify Orders by Risk Level
Every purchaser knows that some orders are riskier than others and the risk impacts many of the decisions they make. This is why quality planning and classifying orders by risk level is important for importers. … [Read more...]
How a China-Based Buying Office Can Add Value
If you source and buy consumer goods from several suppliers in China, your experience probably looks like this: Some suppliers are good, some are not so good and not improving When there is a quality issue, it is much better to detect it while the goods are still at the factory... and yet, sometimes, that factory plays the "do nothing and wait" game -- it means they do a very light sorting job and tell you "all is good now", simply because they don't want to do rework and discard some … [Read more...]
China Sourcing: Does Your Sales Contact Really Work At The Factory?
When I meet someone who has recently started working with Chinese companies, I often urge them not to make any assumptions. One of the most common 'discoveries' buyers make is... that they haven't been working with a factory directly when they thought they were. … [Read more...]
Actionable Tips To Improve Sourcing From China & Develop Suppliers
Over the years, many importers have contacted me after making various mistakes, and, often, the best they can do is start things over with a new supplier, but that means a lot of wasted time, money, and energy! What if you could get years of advice about sourcing from China and developing suppliers once you've started working with them in order to avoid this scenario, but distilled into one eBook? Now you can! A few years ago, I wrote 15 articles that address sourcing from China and … [Read more...]
Sourcing From China 101: The 15-Part Guide for New Buyers
I have recently published the 15-part 'Sourcing From China 101' series for new buyers who are starting to work with Chinese suppliers (and for more experienced people who want to double-check whether they are working in a smart way). The 15 articles are listed below: Do You Need a Sourcing Agent? How to Identify Potential Suppliers? How to Verify a Manufacturer Second Choices vs. “Never Again” Negotiating With Chinese Suppliers: The Terms you Need to Discuss How To Keep … [Read more...]
Sourcing from China 101, Part 1: Do You Need a Sourcing Agent?
A few years ago I wrote a 15-part course that was sent automatically, lesson by lesson, to interested readers. These days, such autoresponders are a thing of the past and we will switch to something different. But, rather than ditching these courses, I will update them a bit and publish them, one at a time. They are still quite relevant to new buyers. --- If you are new to sourcing from China, your first decision will be: should I manage this by myself? If your team can’t dedicate 1-3 … [Read more...]
How to Increase Speed of Developing New Products in China
Developing and manufacturing new products in China, especially if they're customized, is not an easy task. Many new products being launched using crowdfunding platforms such as Kickstarter have delays – in some cases, they are more than 6 months late. (See the typical delays we have observed here.) Actually, delays have to be expected if the business founders have no prior experience of manufacturing in China. Unless they get really lucky and pick a supplier that happens to be a very good … [Read more...]
How to Protect against Copies when you Manufacture in China
For certain types of products (electrical, plastic injection etc.) Chinese manufacturers are often the best source. Production can be performed with relatively high quality and a relatively low cost. However, one of China's major weaknesses is its lack of respect of intellectual property rights. It means many importers have to face a challenge: the emergence of copies of their proprietary products. I made a list of strategies and tactics that should help you reduce this risk. 1. What to … [Read more...]