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Greetings!
Do you want to increase your chances of success? Then take careful aim and read our article below.
Also, don't miss a taste of Sourcing Smarts, our new book with the Sourcing Lady, Edith Tolchin.
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Take Careful Aim
Why targeting one sales outlet can help your product succeed
Most inventors lack a focus while developing and marketing their
product. Some fail to choose a narrow enough target market, others
develop their product thinking it will sell everywhere in its current
form. The truth of the matter is that the more focused you are in your
product development and marketing, the better chances you have of
success.
Read on...
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A Taste of
Sourcing Smarts
Check back here in the newsletter for
"A Taste of Sourcing Smarts," where we'll feature essential excerpts from the
new book, "Sourcing Smarts: Keeping it Simple with China Sourcing and
Manufacturing" by Edie Tolchin, Don Debelak and Eric Debelak. Today's
"taste" will discuss the pros and cons of sourcing in China. This first
part will feature the CONS, followed up by the PROS in the next
newsletter:
Cons:
1)
Difficult Communication: If
you are not experienced in corresponding with China or
Taiwan, your first
attempt - typically by e-mail nowadays - may be very trying. Although the office personnel at most
Asian factories do speak English, it is not the same "English" that we speak
here in the USA. Many do not understand our local idioms
or jargon, so remember to keep it simple and do not commit to anything you do
not understand. Best-case scenario:
Pay a little more and hire a translator, or use an international trade
consultant who specializes in working with Asian
factories.
2)
Quality and Accessibility Often Depend on the Type of Product: Many Asian factories produce excellent
quality sewn and textile items. Their workers can be very talented and
creative. However, forget about
specialty fabrics or matching prints that you found in the USA. It can be done, but your costs will
escalate if you have custom-made fabric prints produced in China. You should also be aware that typically,
the best grades of cotton are not found in China or Taiwan. But what about
electronic
inventions? Very high quality. Printing for packaging is not great, but
has been improving over the years.
The bottom line is - you really need to see counter-samples before
committing to a purchase order. If
your product must be specially made with a mold or tooling, first ask to see
samples of similar stock items the factory has
produced so
you can be sure they can achieve the quality and workmanship you are looking
for. Always arrange for production
testing with an independent safety/testing lab (more info on this to follow in
Chapter 2). Always ask for
references ... and always check
them!
3)
Delivery delays: There will
be many delays - especially for first orders - from the time you submit your
prototype and the factory sends you back a counter-sample. Be prepared
to go "back and forth" by e-mail numerous times before quality control issues
are ironed out. You might find, for
example, that a button is on the wrong side, a light bulb must be larger,
printing needs to be darker, or the outer box has to be thicker. It's also important to know that during
their holidays many Asian factories may close for two weeks or more (as with the
Chinese New Year festival), which could delay your shipment. Ask if they can
provide you with their holiday schedule so you are aware well in advance of
their down times. Also, during typhoon/monsoon seasons everyone is on watch for
delays. If you are told that your
delivery will be 30-45 days, figure more like 60-75 days, allowing for holidays,
coordinating pre-production and mass-production samples, independent testing,
etc.
4)
MOQs (Minimum Order Quantities):
You might have heard that sourcing in Asia requires you to purchase huge
quantities, and this can be difficult if you are just starting out and merely
want to "test the waters" with your product. For many industries the quantity rule
holds true. For most new products,
the factory itself must source the components for your new invention from
several different factories that in turn issue an MOQ to your factory for their
products. So, that is why sometimes
you must purchase large quantities (50,000 vs. 5,000 pieces). In the textiles industry this can
frequently happen. With each new invention that is sourced, in order to make a
counter-sample and provide you with a price quote, the factory must get quotes
on components such as zippers, buttons, ribbons, thread, fabric, packaging, and
labels. Each of your
factory's
suppliers has
an already-established MOQ. So, as
you can see, it is not easy for the factory to just submit to you
a quote for a
new product within a day or two.
Check
back in our next newsletter for the PROS of China Sourcing! To purchase
"Sourcing Smarts: Keeping it Simple with China Sourcing and Manufacturing"
by Edie Tolchin, Don Debelak and Eric Debelak, go to www.egtglobaltrading.com, www.sourcingsmarts.com, or www.amazon.com.
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