When manufacturing new products in China there are several steps that just can’t be skipped, especially in the product design and development phase. If you start working with a manufacturer without mature product designs, you’re increasing your risks and making life much harder for yourself. Here’s why…
These important NPI process phases shouldn’t be skipped when starting a manufacturing project in China, as the more complex the product is, the more risks there are:
- Product concept, including an idea about target customers, distribution, pricing, some form of market validation…
- Product design (usually a first design, but not always very mature)
- Prototypes to test the hypotheses behind the design (e.g. good user experience, possibility of certifications…)
- Tooling
- Pre-production process engineering
- Mass production
As you can see, the first two steps involve the product concept and design, and if you haven’t worked on these and expect a manufacturer to work through all this on their own, you are taking a very serious risk.
A typical Chinese manufacturer’s business model is to produce, not to spend 3-12 months working on new product development. Therefore, the more advanced your product design is, the more attractive your project will be to any factory, and the higher your chances of getting to market fast and without serious quality issues. The opposite is true if you go to them with ‘immature’ designs.
If you can find a contract manufacturer (like us) who also offers new product design and development in-house as well as mass production, this could be a real benefit for you as they will be able to assist with the design and development stages more effectively.
A few examples of ‘immature product designs’
Does your project fit into any of these categories? If so, then your product design probably isn’t mature enough to take to a Chinese manufacturer yet…
1. You only have a concept
You have a rough concept (such as ‘it should be the same as products from brand XYZ, with a classy design and nice materials’), but can’t show anything, or maybe just have a sketch on a napkin.
This can work in a few product categories (e.g. apparel), with the right manufacturer or trading company. But for mechanical and electronic products, it goes nowhere (except if the product is really very simple).
In this situation you might think that all you need is a prototype (only one prototyping round, of course, since you don’t see any difficulties ahead), so you can show it and build up some market interest. However, the absence of market validation at this stage is a big issue, and typically no good Chinese supplier will spend time on this type of project.
2. You don’t understand the current competitive space
In order to mass-produce and distribute a better product than the competition and achieve that at a lower price point, you need to provide ideas of how to achieve the cost target you have in mind.
Being under-capitalized to bring your product to market is also a blocking factor from the very start. A company needs sufficient capital and sufficient margins to buy the first batch, set the basics in place, and grow from that base. It may have to pay for advertising, distribution, sales, etc.
Without the funding in place, Chinese manufacturers, as well as design firms and prototyping companies won’t be motivated to help as they may put you in the “this venture will probably fail” category.
3. You don’t have a clear target market in mind
You have a product design but are unable to explain who will buy it. Just putting the product on Kickstarter or other crowdfunding sites to see if its idea catches on doesn’t give a sense of stability (and also requires a relatively large investment in fees to an agency to prepare your marketing materials and the whole campaign). In this case, design, prototyping, and manufacturing companies are likely to put you in the “this venture will probably fail” category again, or at least will not take you seriously and assign their best staff to your project.
4. You only have Industrial Design (ID) for the product
ID is one of the first things to get right, so that’s a good thing. Hopefully, there are tolerances, and a look-alike prototype, too.
However, when we consider an electronic product, for example. The basic information any manufacturer will need as well as the Industrial Design is:
- A detailed description of features
- List of components
- Product architecture (how components are connected together)
- PCB schematic
- A look-alike and work-alike prototype
- Testing stations
- A timeline and volume projections
That’s a lot of missing information to work through if you give them only a nice-looking computer rendering.
What are the risks if we do start working with a manufacturer with immature designs?
Some manufacturers will take your money even if the designs are immature and vague, and the lack of information about your product means that a lot is left to chance or assumptions.
Here are some risks you’ll face if this is the case:
- The supplier may eventually give up, say, a year of work, with a lot of wasted time and money on your part. This happens all the time in China!
- They might go into production (with your money) and turn out a batch of non-conforming goods that can’t be sold.
- Everything will take longer than you imagine.
Is there a shortcut?
We don’t think so, which is why we insist on following a detailed and thorough NPI process when working on our customers’ new product design, development, and manufacturing projects.
Working with an ODM to develop a new product based on their existing designs can work, but it’s often dangerous as their business model is often based around working on new ideas and retaining the product IP for themselves ‘because they developed it.’ They might then go on and make your product, or at least some form of it, without you, leaving you high and dry.
This is especially dangerous if you have a very unique product idea in a hot-selling category and/or you forget to sign an enforceable NNN, product development, and manufacturing agreement with them to clarify that you’ll own the product IP (assuming they will even accept these terms).
Learn more about the risks of working with different manufacturer types here: OEM, ODM, Contract Manufacturers: Choose your China Supplier Wisely.
Need help?
If you’re an inventor, hardware startup, or business that has a design idea, but you fit into one of the above categories, you may have some questions about how to improve and make ready your product designs so that your manufacturing can progress smoothly, quickly, and on budget.
We can help! Get in touch and we’ll have a no-strings discussion about your product, PLUS we’re happy to sign an NDA!
