Product Development in China – Everything You Need to Know

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.

1. Have a prototype developed by a company of a designer in China that specializes in making prototypes.
2. 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.
3. 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.

1. 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.