Total Cost Leadership in Product Development and industrial design.

Our team in Shenzhen recently had meeting with a group of product development professionals from Jiangsu, China.

This encounter, offered a rich tapestry of insights into our field.

a product development by Suzhou Ninxian

Here, I wish to share some reflections that resonate profoundly with the essence of industrial design and product development, distilled from our conversations.

Total Cost Leadership in Product Development

One standout strategy involves achieving a cost leadership position.

This was accomplished through various strategies, including establishing family-run processing factories to supply goods, making significant improvements in packaging, ensuring compliance with export tax rebates (thereby boosting ROI), and controlling factory labor costs.

The concept of leveraging China product export tax rebates to gain a cost advantage was particularly enlightening.

It underscores the nuanced approaches East Asian product developers employ to serve clients in the Americas and Europe, offering superior experiences and insights post-establishment of manufacturing facilities.

Keep Training New Product Talent

The atmosphere for cross-border commerce in the region appears challenging, making talent acquisition a steep hill to climb.

To counteract this, companies start by hiring fresh university graduates and invest in their training from day one.

This practice, somewhat unique due to the lower frequency of cross-border companies and consequently, a lower turnover rate in Suzhou compared to Shenzhen, results in higher employee retention rates. It highlights a robust training system coupled with lower human resource costs.

Market Testing Insights in the US

In their experience with assisting American clients on platforms like Amazon in the US, success often boiled down to what might seem like luck. By deploying multiple similar product listings for testing, they found that this strategy significantly increases the likelihood of a product’s success, moving beyond operational expertise to the realms of probability in achieving profitability for American and European clients.

Product Launch Strategy An intriguing revelation was their approach to selecting products with low unit costs, high market capacity, and a potential for repeat purchases for rapid industrial design deployment and market introduction. A single listing could result in thousands of orders, with the production-to-market strategy yielding higher profits than anticipated. Surprisingly, they noted that successful products often required minimal advertising expenditure, challenging my preconceptions about market penetration strategies.

These reflections offer a glimpse into the intricate landscape of industrial design and product development in East Asia(particularly in China’s colder regions).

It’s a testament to the evolving nature of manafacture field, where cross-cultural exchanges and shared learnings can lead to groundbreaking approaches and strategies.

I hope to foster continued dialogue with product development professionals worldwide. am happy to facilitate introductions to factories in Jiangsu for those interested.