Deciding which factory to work with in China is very difficult.   It is important to get advice from experts with a strong base in China  and true understanding of your company and your market.

There are a number of options:

• use specialist agencies and consultancies. Employ ones based in China or who travel to China on a regular basis
• contact companies and individuals who have “been there, done that” in China and are willing to help newcomers.
• contact your Chamber of Commerce in China.
• catch a flight and visit an appropriate trade show in Hong Kong.

If you are making contact with specialists you need to take great care. There are many horror stories of companies investing time and money in China-based research for little or no return.    You should do due diligence on any specialists you are planning to use, including any China ‘affiliates’.

Key steps for finding the right factory in China

Companies looking to find the right manufacturer need to take the following steps:

1. Discuss your expectations and business model with a local consultant.
2. Learn the regulatory requirements of your target industry in China.
3. Research the market or industry to find the structure or normal channels – it is likely to be very different from what you assume.
4. Define your needs accurately and have someone on the ground in China research and vet them for you as a first step.
5. Short list the candidates and get quotations or references.
6. Do a proper legal background check on the final candidates to verify the information provided, including ownership, registrations and business scope.
7. Go and personally visit the top candidates with a trusted translator and experienced resident.
8. Use a proper legal translation from a law firm for final contracts but do much of the structure work yourself prior to that to save costs.

How to do perform due diligence on manufacturers

It is important to research any manufacturers you are considering doing business with to ensure that they are reliable and are capable of doing what they say they can do.

There are three basic quality levels of Chinese products:

• low quality destined for the Chinese domestic market – these factories compete on cost not quality
• middling quality destined for the home and less affluent export markets
• high quality, international standard products.

You need to make sure you are dealing with the latter, including the factory’s suppliers and sub-contractors. Ask for reputable client references, but don’t be surprised if none are forthcoming.

A factory ‘outsourcing the outsourcing’ can be a difficult issue to get to grips with. A number of international companies have come to grief not because they chose the wrong factory, but the factory was using sub-standard components supplied by a sub contractor.    Components suppliers all too frequently try to use lower quality materials for production to save on costs.  If the product you make is complex with many components then this must be a key concern.   This is a very common problem and the solution is regular and very strict quality control in the factory in China.

Factories often will not be upfront about their outsourcing. It’s not necessarily a bad thing – it can help to cut costs – but you need to be aware of it because it can complicate quality assurance.   If you can, go to the sub-contractor’s factory and see it for yourself.   

It can be hard to verify whether a factory is committed to the labour and environmental standards that you need to be able to sell your products.   Arranging a Factory Audit in China before starting to work with a new factory is highly recommended.

HK offices of the ODM group will be closed on Wednesday 1st July for holidays.   This marks the 12th anniversary of the handover of HK from Britain to China.   The day is usually rounded off by fireworks over Victoria Harbour around 8PM on the night of 1st July.

In the past china also had a holiday to celebrate the Chinese Communist Parties Founding day (建党节) and formation of 1st National Congress on July 1, 1921.   The Chinese holiday calendar has undergone many changes in the past few years and this year there is no official day off.

For any urgent enquiries on that day, please feel free to contact our China or Singapore office.   www.ODMind.com  / www.ODMsg.com

ODM are proud to announce that Can Do International will be selling our Coolzee Stubby Holder in Australia.  They will be launching to the promotional products industry on 16th July.  The Promo Expo is at the Darling Harbour Exhibition Center in Sydney.  www.promoexpo.com.au / Booth 236

Can Do International is Australia’s largest Trade-Only supplier of Stubby Holders and Associated Products.    They manufacture on premises in Malaga Western Australia and deliver Australia wide. Their customers are Promotional Companies, Printers, (both Screen & General) Embroiderers and other on sellers.   Can Do currently hold the Australian and New Zealand Patent (Distributorship) of a product known as “Slap Wrap & Go”.    www.candoint.com.au

ODM sent some staff down to Retail Asia Expo & Congress at held at Hong Kong Convention & Exhibition Centre on 24-26 June 2009.   This was the first year that the Asia Pacific Congress put on a trade show for manufacturers of  retail design, POS displays and technology solutions.    www.retailasiaexpo.com      At this show it was interesting to see how companies are trying even harder to attract customers, boost productivity, enhance customer service and reduce costs.   

We were looking for for new and innovative retail ideas such as

On-Pack Promotions for drinks.   These booklet labels are an effective and stylish solution for companies looking to communicate an extensive amount of information to their customers.    The makers of soft drinks get to entertain their clients with a free magazine supplement.   In this case a fashion magazine enjoyed extra exposure.   The cost of the operation was more than covered by in magazine advertising.  

This re-sealable booklet labels can accommodate up to 56 pages, making it an ideal medium to expand copy space without adversely altering your product’s image.   Lenticular images and temporary tattoos can also be offered in this same format.

A whole host of designers for in-store Product Displays from China were exhibiting.   On show, various tailor-made techniques such as infra-red activated light box, electronic gadgets and mechanical devices.  Unique displays not only enhance visibility of the product, they are also practical for selling merchandise for FMCG market.  A key factory is also making them very efficient on space and for restocking.

ODM are stationing new staff in Qingdao, North of China,  to be closer to some of our key suppliers.   This enables us to visit key factories on a more regular basis – the flight from Shanghai and associated commutes made it impossible to visit suppliers for just the day.  

The team in Qingdao will focus on….

• Materials:  Steel – Stainless steel – Aluminium – Copper – Cast iron
• Manufacturing processes: Welding, mechanized welding, stamping, hot and cold forging, extrusion, casting, die casting, machining…
• Finishing treatments:  Normal painting, powder coating, hot dipped galvanization, electrical galvanization, sand blasting…

http://www.odmind.com/steelproducts.html

In 1984 the Chinese government named a district of Qingdao a Special Economic and Technology Development Zone (SETDZ). Along with this district, the entire city had gone through amazing development of secondary and tertiary industries. As an important trading port in the province, Qingdao flourishes with foreign investment and international trade. South Korea and Japan in particular made extensive investment in the city. Approximately 80,000 South Korean citizens reside there. Construction proceeds at a relatively fast pace in Qingdao.

In terms of primary industry, Qingdao has an estimated 50,000 acres (200 km²) of arable land. Qingdao has a zigzagging pattern coastline, and thus possesses an invaluable stock of fish, shrimp, and other sea resources.

Qingdao is also home to a variety of mineral resources. Up to thirty different kinds have been mined. Qingdao’s wind power electricity generation performs at among the best levels in the region.  The city has also a number of paper mills.  It is also home to Haier, a large white goods manufacturer, and Hisense, a major electronics company.  

More background on the destination and for tourists to Qingdao.

 Qingdao is a major city (7,579,900 residents) in eastern Shandong province. Qingdao today is a major seaport, naval base, and industrial center. It is also the site of the Tsingtao Brewery. The character 青 (qīng) in Chinese means “green” or “lush”, while the character 岛 (dǎo) means “island”.    The following is a good website for visitors to the city www.thatsqingdao.com

Qingdao people have a strong liking for sports.  As the host for the 29th Olympic sailing events, Qingdao has begun making overall plans in order to improve the ecological environment, highlight “Green Olympics”, “High-tech Olympics” and “Humanistic Olympics”, and build the city into a green Olympic metropolis with the best sailing facilities in Asia.

Internationally, Qingdao is perhaps best known for its Tsingtao Brewery, which German settlers founded in 1903, and which produces Tsingtao beer, now the most famous Chinese beer. The Qingdao International Beer Festival is a yearly festival held in Qingdao. The event is jointly sponsored by national state ministries and the Qingdao Municipal Government.   The festival began in 1991 when the Tsingtao Brewery first applied for permission for a Beer Festival in 1991 and received approval and great support from the Qingdao municipal administration, even to the extent that the city became the main sponsor. The first festival was opened on June 23rd, 1991, and has been held annually ever since. 

For more info on our services and Qingdao operations pls. contact Clemence in ODM Shanghai.   clemence@theODMgroup.com

ODM has developed a range of Stadium Replicas in China to target fans of sports teams and their sponsors  Below are pictures of actual stadiums.

From these pictures our designers are able to work and craft a dream collectors gift for any sports fan: a handcrafted, hand painted resin replica of a favorite professional baseball park, football stadium, hockey or baseball arena.   This ideal polyresin display is an attractive promotional product to mark any sporting event.

The stands can be painted with various colors to differentiate the sections, and the billboards and signs in each stadium are re-created in minute detail.

To promote sponsorship, this distinctive miniature, adds value in terms of branding and marketing.

Not limiting to only stadium designs, ODMasia can manufacture miniatures in any architectural style. It will serve as an excellent corporate gift for any construction-related projects.

Different styles and materials such as wood, matal and plastic can also be used:

The Aevoz Carwasher is a fully portable carwasher with a very effective battery powered pressure spray.  Aevoz comes with a built-in rechargable battery  - powers the washer for up to 60 minutes.   With our spray, a car wash will take merely 6minutes!   The tank capacity is over 20 Liters.  This set also comes with a hose and ajustable nozzle.

With the help of a team of experienced and innovative industrial designers, ODMsg has developed a radically new portable carwasher that is user-friendly, effective and innovatiove.

The Aevoz are being trialled on the Singapore market now and received positive feedback from our customers. Aevoz is also due to be featured in MenHealth magazine in Singapore which we believe will further push up the sales of Aevoz.

Other uses for this washer include outdoor shower for camping and beach use, mobile washer for mountain bikes, watering outdoor plants etc.. 

For more information on the Aevoz please kindly login to the website www.aevoz.com

ODMsg developed an innovative feedback tool for REACH Singapore roadshows – a giant mobile phone style kiosk concept as the feedback channel for the roadshow.   www.reach.gov.sg

ODM worked closely with REACH Singapore to develop the kiosk into a more user-friendly, interactive and manafacturable shape. The REACH mobile phone kiosk highlights the multi-disciplinary engineering work by ODM. 

• Materials used were mainly wood and finished with laminate.  
• The docking station hides the CPU while the screen of the phone is a LCD monitor in portrait position.
• The keypads are fully functional for allow interaction with users.
• Programming of Kiosk done internally by ODM computer engineers.
• Installation and maintenance organised by ODM engineers.

The kiosk served as the feedback channel for REACH Singapore Roadshow. Visitors can key in their feedback manually into the kiosk. The interactive interface of the kiosk also allowed users to answer multiple choice questions as well as answer essay questions using the buttons. The questions are also customizable and interface is changeable and adaptable.   REACH Mobile Phone Kiosk has received positive responses from the client and the users.

Contact us today to help you develop innovative Point of Sales (POS), other displays and information kiosks.

www.ODMsg.com

Following the HK Gifts show our engineers have worked to improve the pen fan mould in China.  This was after great interest and useful comments from key customers.  

Key markets showed interest in the Pen Fan included local Hong Kong market,  Japan, Europe and USA.   The 3 main improvements are pictured below.

For any prototype and mould development in China, contact ODM.