Choosing to work with a Chinese manufacturing company means that you need to be involved at every step. Here are a few important things that should be kept in mind for product development in China.
- Have a prototype developed by a company of a designer in China that specializes in making prototypes.
- It is advisable for product development in China, to understand that when it comes to intellectual property rights for the development of a new product, Chinese manufacturers often think that they have the rights on the designs, the files, the molds – everything. This is one crucial aspect that potential buyers need to thoroughly ensure and have the same mentioned in writing to protect their ideas and designs. A Non-Disclosure Agreement or NDA is the best way to safeguard your brilliant product-related ideas from the competition. The NDA typically needs to be signed by the buyer, the manufacturer, and the agent, if there is one in between.
- While the IP rights are being decided, it is also vital that the buyer and the seller agree on other critical issues like –
- Pricing – Negotiation is an important aspect of this. Buyers need to be aware of not falling for the lowest offers because it does not certainly mean the best offer.
- Sample – insist on sample approval before the bulk production starts.
- Minimum order quantity or MOQ – This needs to be tactfully done as the seller will always try for higher MOQs while you, as the buyer would be happy with lower MOQ.
- An agreement needs to be drawn up on the ownership of the mold, the refund of the mold cost and the time estimated time for finishing preparing the mold.
- Check and authenticate the qualification of the supplier. It is always advisable to cross-check and verify the certifications of the suppliers before signing on any contractual documents. ISO 9001, ISO 14001, BSCI, etc. are some of the mandatory certifications that a good quality supplier should have. Working with such manufacturers is a guarantee. Because the products will be standardized and processes will be audited thoroughly during production.