X hits on this document





12 / 27

more sophisticated technology. She was told that “they cannot automate their production because so many of their people will have no jobs.” Regardless of their production process, Angie was assured the job would be accomplished.

With confidence and excitement, Angie completed her 10-day sojourn to China. She felt that she had attained the means to produce her product. “Since I returned from China, I look at life differently,” Angie says. “I feel like anything is possible. I have a better understanding of how things are made from scratch.” Angie could see her idea coming to life, moving from a drawing to a tangible product.

HURDLES TO OVERCOME Angie found that her Chinese manufacturers offered very good prices compared to those she was quoted by American producers. In fact, her China experience gave her confidence that she could keep her prices fairly low in the U.S. market and still make a good margin that would help her meet her profit goals. Her “masstige” product strategy seemed feasible.

However, she had not yet sailed into calm waters. Manufacturing overseas exposed YOYO Lip Gloss to a new set of issues, such as communication and quality. Instead of dealing directly with China, Angie could have opted for a broker or a full-service U.S. outsourcing firm to assist her with product manufacturing. Many companies decide to use outsourcing firms to minimize their issues in dealing with Chinese organizations, but Angie never thought about using a broker. Yet, in dealing with her Chinese manufacturers, she understands why many companies decide to hire a broker or an outsourcing firm for assistance.

Communicating directly with Chinese manufacturers can be a task in itself. There are considerations of cultural, language, and time differences. Angie found out firsthand just how difficult it can be to deal directly with a company overseas. She learned it is imperative to understand every aspect of the company with which you are dealing. It is not as simple as picking a firm and hoping for the best. Chinese manufacturers are making Angie’s product from scratch. They are not modifying an existing product. Angie needed to be involved in every aspect


Document info
Document views64
Page views64
Page last viewedSun Dec 04 04:48:54 UTC 2016