Manufacturing products in China can be a challenging experience, especially for companies who are new to the process. However, with the right guidance and knowledge, it is possible to navigate the manufacturing landscape successfully. In this article, we will explore the key factors to consider when manufacturing a product in China, including the benefits of manufacturing in China, the common mistakes to avoid, and the steps involved in the manufacturing process.
The article will begin with an introduction to manufacturing a product in China, including the challenges that companies may face and the best practices to follow. We will then discuss the benefits of manufacturing in China, including access to a wide range of component suppliers, quick and affordable tooling, and unlimited expertise in different technologies and processes. We will also highlight the three fatal mistakes that can hurt a company’s ability to effectively manufacture a product in China. Finally, we will provide a step-by-step guide to manufacturing a product in China, from finding the right supplier to quality control and shipment.
Key Takeaways
- Manufacturing a product in China can be challenging, but with the right guidance and knowledge, it is possible to navigate the process successfully.
- The benefits of manufacturing in China include access to a wide range of component suppliers, quick and affordable tooling, and unlimited expertise in different technologies and processes.
- To avoid common mistakes and ensure a successful manufacturing process, companies should follow best practices and carefully manage each step of the process, from finding the right supplier to quality control and shipment.
3 Fatal Mistakes That Will Hurt Your Ability to Effectively Manufacture a Product in China
Developing and manufacturing a product in China can be a complex process, and making even a few mistakes early on can lead to serious problems down the line. Here are three fatal mistakes that can hurt your ability to effectively manufacture a product in China.
Fatal Mistake 1. Not Having a Proper Strategy and Plan
One of the most common mistakes companies make when developing and manufacturing a product in China is not having a proper strategy and plan. This can lead to partnering with the wrong type of supplier, such as ODM manufacturers who may not have the right engineering capabilities, trading companies that may not have much control over what happens in the factory, or large organizations that may not devote their best resources to your small project.
This mistake can also lead to excessive trust in one supplier and the lack of a backup supplier, which can become a huge problem when it is time to end the current relationship. It is important to cultivate backups for any project other than a small one. Ignorance of the huge gap between R&D and NPI can also be a problem, as bridging this gap can take up to 6 months of hard work.
Fatal Mistake 2. Not Signing the Proper Agreement at the Beginning of the Relationship
Another common mistake is not signing the proper agreement at the beginning of the relationship. A proper agreement is critical, but it is often put on hold and forgotten until buyers begin to suspect or see obvious signs of misconduct. This can lead to the supplier raising the price, offering poor quality, or taking your tools and/or products hostage when you start threatening them with fines.
To avoid this, it is important to get the supplier to commit to keeping the bill of materials open to you and make them aware that all developed intellectual property is yours. It is also important to make the agreement enforceable in the supplier’s country and to get to know China’s manufacturing law as much as possible. Doing this at the beginning of the relationship is crucial, as it can be difficult to get the supplier to sign your agreement later on.
Fatal Mistake 3. Over-Relying on Your Chosen Supplier
Over-relying on your chosen supplier is another common mistake that can hurt your ability to effectively manufacture a product in China. By delegating the entire project to the supplier and taking no precautions, you may not know the critical component supplier or the plant that performs the critical surface treatment. This can make switching to a new supplier more difficult, as everything must be started from scratch.
To avoid this mistake, it is important to have (micro) management of engineering work and to have drawings, schematics, and other non-recurring engineering deliverables. This will make it easier to switch to a new supplier if necessary. Unfortunately, many importers come to realize how little information they have on hand and how bad their alternatives look, and they may decide that their only viable solution is to try to salvage their current supplier relationship. However, this decision can drive them deeper into their hole and lead to the failure of their project.
By avoiding these three fatal mistakes, companies can increase their chances of effectively manufacturing a product in China. It is important to have a proper strategy and plan, sign the proper agreement at the beginning of the relationship, and avoid over-relying on your chosen supplier. By doing so, companies can avoid the domino effect of manufacturing products in China and increase their chances of success.
Are You “Ready to Manufacture a Product in China”?
What Are the Signs That You May Not Be Ready to Manufacture a Product in China?
Manufacturing a product in China can be a complex and challenging process, especially for those who are not familiar with the country’s business practices and cultural norms. Here are some signs that indicate a company may not be ready to manufacture a product in China:
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Assuming NDA is NDA: Many companies assume that non-disclosure agreements (NDAs) used in their home country will work in China. However, this is not always the case, and using a template NDA may not provide adequate protection for a company’s intellectual property.
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Believing everything on Alibaba.com: Companies often rely on Alibaba.com for finding suppliers in China. However, not all information on the website is accurate, and the “Gold Supplier” badge does not guarantee security.
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Assuming tool manufacturing will be done in-house: Companies may assume that tool manufacturing and sensitive intellectual property will be kept within a supplier’s four walls. However, this is not always the case, and suppliers may use the tool for other customers or refuse to return it.
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Assuming a supplier’s move is like moving an office: If a supplier tells a company that they are moving their plant to a new location, the company may assume that this is a simple process. However, it can cause significant disruptions and delays in production.
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Assuming a supplier’s reputation is enough: Companies may assume that a supplier’s reputation, such as being a Microsoft or Apple supplier, is enough to ensure quality. However, tangible proof is necessary, as even well-known suppliers may cheat small importers.
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Being impressed by a supplier’s hospitality: Companies may be impressed by a supplier’s hospitality, such as taking them out for a fancy dinner. However, this is a standard way to make a sale in China and does not guarantee VIP treatment throughout the relationship.
It is important to note that not all Chinese manufacturers are unethical or incompetent, and some are very good. However, many are busy with large projects and may not be interested in small projects that require a lot of engineering work. Therefore, it is crucial for companies to conduct thorough research and due diligence before deciding to manufacture a product in China.
Steps to Manufacture a Product in China
Manufacturing a product in China can be a complex process, but with smart strategies and a realistic plan, it can be done efficiently. Building a solid supply chain, setting the right expectations, and getting the design and engineering right are all crucial steps to ensure a successful manufacturing process.
1. Develop a Smart Strategy and Realistic Plan
Developing a smart strategy and realistic plan is essential to ensure a smooth manufacturing process. Rushing into manufacturing without proper planning can lead to costly delays and mistakes. It is important to consider all aspects of product design and implications early on to avoid any issues down the line.
Consider all aspects and implications of product design
Product design is a crucial aspect of the manufacturing process that should not be overlooked. Important considerations such as the level of finishing, retail packaging, battery life, and ease of part replacement should be addressed early on to avoid any delays or issues during production.
Some examples of important considerations are:
- Do you need a level of finishing similar to Apple products?
- Will the retail package come together?
- Does the user expect the battery to be fully charged within 1 hour?
- Do users expect to be able to replace parts?
Spend some time planning your next steps
Planning is essential to ensure a successful manufacturing process. It is important to consider all the steps required up to the point of the first batch being made and shipped out of China. People with no experience in product development often underestimate the amount of time and effort required.
Are there any milestones?
Including milestones in the plan can be helpful to ensure a phased approval process. This is common in established organizations and certain startups that need to convince investors. Examples of classic milestones include confirmation of industrial design, drawings, and obtaining third-party product certification to comply with relevant regulations.
Expect some delays
It is important to expect delays during the manufacturing process. Most projects are delivered late, and the more complex the project, the more likely it is to fall behind schedule. However, there are solutions that can save time, such as lab testing components before production and running a small trial run prior to volume production.
Mitigating market risk
Mitigating market risk is crucial to ensure a successful product launch. Market research and developing a minimum viable product can limit market risk. It is important to understand the nuances of the demand and get real-life feedback to make informed decisions about the product.
What certifications are required for the country/region of sale?
Knowing the required certifications for the country/region of sale is essential from the start. Researching and planning for certifications such as FCC and UL can save time and avoid costly delays during the manufacturing process.
2. Build Your Supply Chain on a Solid Foundation
Building a solid supply chain is crucial to ensure a successful manufacturing process. It is important to find the right type of supplier that meets your specific needs and mitigates any risks.
3. Set the Right Expectations from the Start
Setting the right expectations from the start is essential to avoid any misunderstandings or delays during the manufacturing process. It is important to have clear communication with the supplier and ensure that everyone is on the same page.
4. Get the Design and Engineering Right
Getting the design and engineering right is crucial to ensure a successful manufacturing process. It is important to work with experienced professionals and conduct thorough testing to avoid any issues during production.
In conclusion, manufacturing a product in China can be a complex process, but with smart strategies and a realistic plan, it can be done efficiently. Building a solid supply chain, setting the right expectations, and getting the design and engineering right are all crucial steps to ensure a successful manufacturing process.
Manufacturing Products in China Conclusion
Manufacturing a new product in China can be a challenging process, especially for those who are doing it for the first time. It is important to plan carefully and select the right manufacturer to avoid potential risks such as market acceptance and technology selection.
The development process should be repeated every few years to create new versions of the product. During this process, simplification of some aspects of the design may be necessary, and more engineering time may be spent on key areas. It is also important to take steps to prevent certain risks and plan the next steps accordingly.
While the process may seem daunting, it is essential to get it right from the beginning. A product sourcing company can be very helpful in guiding you through the process and ensuring that you choose the right manufacturer for your product.
In conclusion, manufacturing products in China can be a long journey, but with proper planning and guidance, it can be a successful one. It is important to take the necessary steps to ensure that your product is of high quality and meets the needs of your target market.