Inconsistent quality problems and intellectual property concerns kill many business ventures into China. Inconsistent quality comes with the China territory: Beware of first production runs on products where product quality seems A-OK and subsequent runs are not of equal or improved quality.
Price is always a primary concern, but it shouldn’t be the primary driver to achieve your desired outcome. Ultimately you must know who you are dealing with. Even then, you must find out the country’s regulatory environment well in advance of a sales transaction. Hiring a third party to oversee product quality and consult with your banker and transportation experts to fully cover payment and delivery concerns.
- Consider using a third-party quality control officer to monitor quality from a factory and incorporate an inspection certificate as part of your payment condition.
Intellectual property (IP) issues are at stake and the inability to prosecute appropriately when these types of violations occur makes it all the more complex and scary for companies.