Blog Backlog
Because of the earthquake and the disruption it caused to the internet, I’ve got a backlog of blogs that are written, but not posted. So get ready for the deluge–a couple weeks worth of blogs and book reviews.
Enjoy! DD
Because of the earthquake and the disruption it caused to the internet, I’ve got a backlog of blogs that are written, but not posted. So get ready for the deluge–a couple weeks worth of blogs and book reviews.
Enjoy! DD
Had a couple of great conversations with a camera factory and the Chinese customs yesterday. We are ordering some disposable cameras and got a “Kodak” sample from one of the factories that we talked with. We immediately called them to see about ordering the “Kodak” camera since the price was basically the same as the no-name cameras that we were finding elsewhere. They told us that we certainly could get “Kodak” embossed on the camera body but that it wasn’t really Kodak—it’s a fake. In fact, they said that they will be glad to ship it any where we wanted but we may have some issues if we try to import it into the US. But anywhere else, including Europe, would not be a problem.
Now this factory is not some back-ally secret that we just happened upon. It’s listed on all the major international sourcing websites and participates in international tradeshows too.
Naturally, we were incredulous. And since there were some other questions about the importing some items to the US we called the Chinese customs here in Shenzhen. Yup, exporting “Kodak” cameras that were not made by Kodak was not a problem—meaning there is no check as product leaves China. But, we were told, the US customs will call the listed Kodak factory of origin to verify the shipment before it is allowed into the US.
If you believe all the great news coming out of China consider this your wake up call. You need to temper all the hype you’re hearing about how quickly China is catching up to the West’s legal and IP standards. Sure China joined the WTO. Sure the legal system is developing quickly. Sure China is miles ahead of where they were even 5 years ago. But China is still the number one producer of black market goods in the world. Your IP is your own responsibility. Register your brands and trade marks in the US and in China. Get your legal ducks in a row so that when you (not if you) have a problem you can immediately resolve it.
You’ve head it before, Chinese (Asians in general) don’t like to say “no.” It’s a face issue for them to not be able to give you what you want or for them to not be able to do something that you think they should be able to do. You can claim that Asians are not unique in this; that Westerns won’t say “no” to avoid uncomfortable social situations or close sales deals, but that’s another blog for another site. In Asia, it’s more than just uncomfortable social situations or sales. And for Westerners doing business it means money, time and confidence.
There is probably nothing more exciting while on a factory-qualifying trip than to have the factory tell you “yes, we can do that. No problem.” This is exactly what you have come to China for—to find and qualify a factory. But hearing exactly what you want to hear is often dangerous—especially if you are heading back home soon and leaving production or mold tooling in the hands of someone that you’ve just met.
One thing that we found is that being told “no” is actually a great indicator of factory capabilities and character. Two of our “best” factories tell us “no” on a regular basis. Why is that good? Because it means that we can trust them to only take projects that they are confident they can actually do. For them to tell us “no, we can’t do that” means that they are comfortable with our relationship, they are knowledgeable about their own capabilities and they are willing to admit limitations and provide real service rather than just be a “yes-man.” That is invaluable anywhere but especially in eager-to-please-you China!
The good kind of “no” is more than just the typical “We don’t want to customize this for your because that means we have to work harder than usual.” That kind of “no” is certainly bad. So how do you tell the difference? Usually it’s process vs. pieces. You want a “no” when process can’t be duplicated due to a lack of expertise or insufficient technology. If your original (Western) supplier can manufacture you widget in 6 weeks and your Chinese supplier, with the same machinery is telling you they can do it in 3 weeks—you know that you would rather have a “no” now because you’re going to get crap later. By pieces we mean individual products, for example molded items, that a factory could make or outsource but tells you they don’t want to. That’s the bad kind of no. If you know your product and the manufacturing process you’ll be able to discern between the two.
Bottom line: if your factory is telling you they can do it for ½ the price in ½ the time—that’s a “yes” that really means “no.” Likewise, if they understand your product and are still telling you “no” they can’t do it—you know that they are honest or at least not reckless and you should keep in touch for future projects.