Author: ewb_admin

Product development is a multi-step process that starts with a single idea. Conceptualizing the type of product you want to make typically comes from meeting a need in a given market. Once you determine what type of product you want to create, the next step is to actually put it into production. Creating a product isn’t as simple as 1,2,3. It requires product design, engineering, sourcing, acquiring suppliers, partnering with the right manufacturing teams, aligning with the right factories, and so much more. Read on to learn how to create a product that will capture market attention and bring you the ROI you’re looking for.

7 Steps of Creating a Product

Before creating a product, the first step is to assess the market and determine if there is demand for it. This requires doing market research and involves getting to know your target audience. Once you identify what their wants, needs, and priorities are, you’ll be better able to meet them with your product creation.

1. List Out Your Prospect’s Needs

It’s imperative that everyone on our team understands your business from the ground up. Creating a bestselling product requires knowing how the product itself works but also why it is being created in the first place. Never forget the “why” with product development. Get specific with this and write it out. This will help guide your marketing strategy and overall business plan. Afterwards, update the product specifications as you progress through product development and manufacturing.

2.  Conduct Market Research for Your Product

Understanding your target audience is key to product development. Conducting market research will help you, your product designers, and your engineers design a product that gives the people what they actually want. Research and development (R&D) involves doing a deep dive into the market, your competition, and historical accomplishments early in the product creation process.

3. Design Your Product

The product design stage of product creation is where the “how” comes into play. This is where you’ll illustrate how your product works, what it looks like, and what it does. The design stage could start with simple drawings and progress to 3D renderings. Conceptual, preliminary, product, and industrial design are all involved in the design stage.

Creating a product is a collaborative process that often requires the involvement of several parties, product designers and engineers included. Partnering with a full-service product design and manufacturing firm like East West Basics is one of the most reliable ways to ensure that this process starts off on the right foot and that the aesthetics match the functionality.

Designing a functional product requires meticulous planning and specificity. Every product creation process is different based on the industry and type of product being manufactured. Some things to keep in mind include:

• Shape
• Size
• Components
• Materials
• Colors
• Surface finishes
• Software
• User interface
• …and more

4. Find the Right Manufacturers to Create Your Product

Sourcing the right manufacturers will make all the difference in how sellable your final product is. The right manufacturer and factory can make or break  the creation of a product and may impact its long term success. To find the right manufacturer, you’ll need to explore capabilities, cost, working conditions, and several other factors. Not having experience in this field can result in costly mistakes. This is why many first-time product manufacturers partner with experienced sourcing and manufacturing agencies like EWB.

5. Prototype, Test, and Iterate

After defining your concept, your team will need to start constructing prototypes. A physical model of your product will address design questions and enhance market research. You can see it, test it, obtain client feedback, and try other solutions with the prototype.

6. Plan for Production

Production planners, manufacturing engineers, quality engineers, and supply chain experts turn the whole product specification into a supply chain map, production plan, and quality system. All off-the-shelf components are sourced, unique tools like injection molds are designed and ordered, each manufacturing step is detailed, and a quality inspection and tracking system is set up.

7. Manufacture Your Product

Once the aforementioned stages are complete, manufacturing can finally begin! Still, just because the initial design stages are complete, that doesn’t mean the product development team’s work is done. Proper production is iterative and interactive. Lean manufacturing may enhance and eliminate waste from every link in your supply chain and production plan. Measure and track quality to improve your product. Your major responsibility as the person at the wheel of this operation is to ensure that you achieve the set targets for budget, time, and quality.

Developers use prototypes to visualize products before mass manufacturing. Prototyping is a great way to determine whether your idea is technically possible and if customers want to buy it.

Designers and manufacturers develop successful products through thorough research, testing, critiques, feedback, and revision. Revising product design is par for the course with prototype product development. Making tweaks and changes to your product can take it from good to a bestseller.  Starting with high quality prototype product development is crucial to the long term success of any product. Finding out more about how prototyping works with manufacturing will help you make more educated decisions about the future initiatives for your product development.

Why Use a Prototype?

Designers build prototypes to save time and money as well as to test the market. Before large production can go into effect, prototypes will give you an idea about several things for your product.

First, a prototype will show you what works well. Second, it’ll also show you what you need to change or modify. Third, if you roll out your prototype to a test market, it may offer valuable insight into how potential customers interact with your product.  This is instrumental in the early days of production. The worst thing you can do is mass produce a product with errors or with features that customers don’t want.

Prototype product development allows you to achieve four crucial things:

1. Validate your product idea by solving consumer problems.
2. Test functionality—the design must produce a working product.
3. Iterate until the prototype passes all tests.
4. Prepare for manufacturing using design specifications.

Steps in Prototype Development

Developing a prototype goes through the five stages of a feasibility study, research, drafts, detailed designs, and final designs. Here’s what occurs during these stages:

• Stage 1: Feasibility Study

Before proceeding, you must determine if a new product idea is practical. This proof of concept step involves extensive research and your initial set of drawings.

• Stage 2: In-Depth Research

Researching the market, products, and customer data is critical in determining if your idea is really worth something. Even if you’ve already developed your product idea, the jury is still out on whether the final product will be profitable.

Qualitative and quantitative research  that looks into customer appeal, manufacturability, marketability, competition, price sweet spots, margin potential, and other factors are all important. If possible, engage in objective, third-party research to avoid justifying findings to fit your conclusions.

• Stage 3: Drafts and Specifications

After your study, write out your product idea. You can draw anything, but quality prototype product development is best reserved for experienced product designers, as they will be able to conceptualize your vision as specifically and accurately as possible. Utilizing their best practices and experiences from previous projects will only support your initiatives. Additionally, expert product designers will be able to advise you on materials and supplies (i.e., suggesting one vs. another for functionality, price, etc.).

• Stage 4: Detailed Designs

After developing the early designs, the next step is to hire engineers and product designers for well-executed product designs. In this stage, product designers will deliver precise drawings and may also provide 2D and 3D renderings, depending on your needs. It may also be necessary to hire a dedicated engineering department to help determine manufacturability.

Alpha and beta testing can help produce a variety of prototypes for evaluation in this stage. Essentially, alpha testing is the simplest prototype of your product and often prioritizes utility over aesthetics. This testing stage also focuses on your product’s appearance. The prototype may not be functional but it will accurately display the product’s appearance.

By contrast, beta testing lets you see a working product prototype that you can test with your sample target market.

• Stage 5: Final Design

At this stage, the prototype’s final design is ready for manufacturing. This comprises a pre-production prototype and manufacturer-specifications. After finding a manufacturer,  the next step will be to define quality standards off of which you can evaluate your manufacturer.

Outsource Prototype Development

A renowned sourcing, manufacturing, and procurement firm can help investigate and design prototypes for you. Work with a firm like East West Basics that provides research tools, helps with your research, and teaches you how to utilize a network of designers, engineers, and manufacturers to your advantage.

Manufacturing a new product can be an exciting endeavor, but figuring out the most cost-effective way to get it done is a challenge in and of itself. Many people turn to manufacturing overseas as the obvious choice. Whether or not there’s truth to that depends on a variety of factors, some of which include the type of product you’re manufacturing, the quantity, MOQs, the teams you align yourself with at home and aboard, and more.

Manufacturing overseas can be beneficial in a number of ways; that said, there are always going to be things you need to look out for, regardless of where you choose to do your manufacturing. To help you determine whether or not overseas manufacturing is right for your business, we’ve put together some insight. Learn from our experience and use it to make a qualified, educated decision for yourself.

Advantages of Manufacturing Overseas

• Availability of Inexpensive Labor Force

Foreign countries, particularly those in Asia, are desirable locations to outsource overseas manufacturing because of their large workforce. China’s labor costs are 25%–30% lower than those in the US.^[1] Vietnam’s workforce can be acquired for an estimated one-tenth of the cost of what it would be in the US.^[2] Inexpensive labor costs can make a huge impact on production costs and may drastically improve profit margins.

• Access to A Wide Network of Manufacturers

Product developers have many overseas manufacturer options. Before the pandemic, China did 28.7% of world manufacturing. Having access to a wide network of manufacturers is beneficial for variety as well as quality when manufacturing overseas.

• High Capacity of Output

Manufacturing your products overseas increases production capacity. The large workforce means capacity can be at an all time high. This allows overseas producers to rapidly scale up and manufacture large volumes, which can result in cheaper raw materials provided customers meet the minimum order size requirements.

• Proximity to Raw Material and Component Suppliers

US factories simply don’t have the same kind of access to raw materials and components as factories overseas because of their proximity. That doesn’t mean they can’t get these supplies, but being closer to the source always expedites things, especially when it comes to time-to-market. Overseas contract manufacturers have mature supply chains and are more readily accessible to all raw materials.

• Increased Number of Skilled Workers

In addition to having an inexpensive labor force, manufacturing overseas in Asia also provides an increased number of skilled workers. This can make all the difference if time and manpower are of concern. Countries such as China and Vietnam are amongst the leaders in expanding the volume of skilled workers in their countries.

The Challenges of Manufacturing Your Product Overseas

While there are numerous reasons to take manufacturing overseas, there are some potential drawbacks that could occur as well. Before sourcing internationally, product development teams should consider the following factors:

• Increased Shipping Rates and Lead Times

Manufacturing overseas will always come with the cost of paying shippers, customs, and handling other expenses. These expenditures are par for the course and are to be expected, but they need to be factored into the overall budget.

• Cultural Barriers

Partnering with an international manufacturer may present language and cultural challenges. Negotiating contracts, prices, procedures, ethics, and cultural differences can be tricky if you’re not familiar with the customs and the traditions. The great thing about partnering with an international sourcing and manufacturing company like East West Basics is that we are perfectly primed to handle that for you. Our team members are multilingual and experienced in the everyday trading practices for which China and the greater parts of Asia are known.

• The Possibility of Service Issues

Manufacturing of any kind, whether at home or overseas, comes with the risk of quality issues and standards not being met. This challenge is not unique to manufacturing overseas; that said, not having boots on the ground in the country in which your goods are being made can exacerbate these issues. Another reason to consider partnering with an international team like EWB is because we have personnel onsite. With a board of directors based out of the US and an independent quality control team on the ground in Asia, you can be sure that nothing will slip through the cracks.

Make an informed decision about overseas manufacturing by equipping yourself with the right team. Start sourcing the right way when you partner with East West Basics today.

The boom of e-commerce and manufacturing overhauls in recent years have been a catalyst for companies around the world to reassess their manufacturing strategies. Buying online was already popular prior to the COVID-19 pandemic, but the change in world regulations caused the e-commerce space and internet purchasing to just about explode. With that came supply chain interruptions, and to some degree, a reinvention of small scale manufacturing.

When manufacturing a new product, it’s common for most companies to look overseas. Many explore China and other parts of Asia for its high product output and low production costs. Some companies already have products on the market and may have a reliable manufacturing partner. That said, given the change in market dynamics, it may be time to examine more cost-effective and secure alternatives. That’s where small scale manufacturing comes in. 

China and various parts of Asia are known for being premier manufacturing hubs. Whether large or small, the right sourcing and manufacturing partner will be able to connect you with the proper suppliers and factories to support your initiatives.

What Is Small-Scale Manufacturing?

If you’re looking to test the market, do a limited run of a brand new product, or manufacture just a few products at a time, small-scale manufacturing may be right for you. This method of manufacturing is just as it sounds. It scales down what would otherwise be mass production into something more niche and low-volume.

Small-scale manufacturing can involve any industry and any type of product line. The quantities may vary depending on what the business owner considers to be “small” or limited. Additionally, production methods may also vary. There are small scale manufacturing plants in China and Asia that can test out products for a limited run as well as mom-and-pop type of shops that conduct their own small-scale manufacturing in-house.

There are several reasons to explore small-scale manufacturing, some of which we touched on above.

Market Testing with Small Scale Manufacturing

A great way to test the market and see if there is demand for the product you’re looking to make is to start with small scale manufacturing. Smart business owners and entrepreneurs know that it’s not wise to go from 0-60 right out of the gate. Finding a manufacturing partner in China that offers small scale manufacturing, and may be able to transition to large scale manufacturing, is the best way to safely test the market while securing production as your company grows.

Small Scale Manufacturing Maximizes Quality

It’s no secret that the larger entities become, the harder it is to stay on top of every single good and product that gets shipped out from a factory. East West Basics is adamant about ensuring that quality standards never get sacrificed regardless of how large the production order is. That said, it’s infinitely easier to catch even the slightest hiccup before it becomes problematic when you’re operating on a smaller scale.

Flexibility to Scale Production

Leading small scale manufacturing facilities in China, like the ones we partner with at EWB, know the benefits of batch manufacturing. Batch production is a standard manufacturing method that produces 1,000 final assemblies in a week instead of something like 100 over 10 weeks. This strategy lets you acquire material in bulk, focus on employees, and shift resources to other things. Small scale manufacturing may not start this way, but having the option to grow to batch manufacturing is a benefit offered by many small scale production plants. This may not be the case with facilities that want to start big immediately.

Gear Up with Small Scale Manufacturing with EWB

Global manufacturing is constantly evolving. Small scale manufacturing can be a cost-effective, timely solution to learning about your target audience, demand for a given product, and may help you gain valuable insight before you transition to mass production. Whatever scale of manufacturing you need, it’s imperative that you work with a reliable sourcing company. Find exactly what you’ve been looking for in product design and manufacturing with East West Basics. For more information, contact us today!

Negotiating a short-run manufacturing arrangement or simplifying a design to reduce production costs can be stressful for entrepreneurs. If you’re one of the many who struggles in this area, know that you’re not alone. A useful solution to these challenges is contract manufacturing, which can be instrumental in streamlining production.

Working with contract manufacturers has numerous benefits for both small and large organizations. Outsourcing certain services and hiring externally may allow you to make high-quality products quickly, all for a cost that both you and your customers will love.

What Is Contract Manufacturing?

Contract manufacturing involves outsourcing production to a manufacturing business. Contract manufacturers offer many services to enterprises, some of which include:

• Creating detailed computer models of products to facilitate the manufacture
• Manufacturing things utilizing skilled labor or 3D printers, CNC machines, and other instruments
• Finishing products
• Packaging
• Supplying inventory warehouses
• Quality Control
• …and more

Contract manufacturers benefit most industries and businesses due to the broad scope by which they operate. Smaller companies outsource manufacturing to cut expenses, while larger companies employ it to streamline production. Contract manufacturing can benefit a business regardless of the industry or product complexity. Delegating tasks in this manner allows entrepreneurs to dream big and create innovative products.

Benefits of Contract Manufacturers

There are multiple reasons every business should consider working with a skilled and experienced contract manufacturer rather than staying in-house. Some of these include:

1. The Opportunity for Better Products

Contract manufacturers can make great products, sometimes of better quality than you might get with your own internal resources. Having access to a contract manufacturer’s team means you will get to work with qualified engineers and innovative production gear, including CNC machines, 3D printers, and accurate cutting, drilling, and milling tools. Many of these resources may not be accessible to you otherwise and could result in a finished product that is better than what you thought was possible.

2. Lower Costs with Contract Manufacturing

The cost of keeping everything in-house may be more than what your company can handle at any given time. Manufacturing instruments, operators, product designers, and plant/warehouse upkeep can all add up. Unless it’s absolutely necessary, consider moving these to a contractor and you will likely see a reduction in overhead and an increased ROI.

3. Resource Conservation

Contract manufacturers save significant resources in multiple ways. Lean manufacturing reduces waste, which reduces costs and carbon emissions. Additionally, working with a contract manufacturer frees up time so your employees can focus their efforts on branding, marketing, and other vital duties instead of production details.

4. Labor Savings

Scaling a business to the level of mass manufacturing requires a massive crew of plant managers, engineers, operators, and experienced materials workers. Contract manufacturers manage their employees efficiently; their sole purpose is to provide the benefits of a large staff without the hassle of hiring, wages, or scheduling.

5. Faster Market Entry with Innovative Technology

Contract manufacturers can help you quickly build your products using the latest manufacturing tools and knowledge base. CNC and rapid prototyping are techniques and tools that accelerate these processes, enabling businesses to go to market exponentially faster.

6. Scalability

Even as output rises, contract manufacturers negotiate low bulk raw material prices. If you start small (say, 1,000 components), you can immediately scale up production without significantly higher costs. Contract manufacturers record your manufacturing preferences and product models to increase production swiftly.

7. Contract Manufacturing is Perfect for Startups

Startups and small enterprises in particular can greatly benefit from contract manufacturing. These enterprises generally lack the budget, people, and resources for in-house manufacturing. Outsourcing initiatives allows them to compete with larger firms at a lower cost.

8. End-to-End Options

End-to-end contract manufacturers handle the full process from start to finish. They design, buy, manufacture, assemble, package, and ship products. Keeping everything under one roof minimizes your business’s expenses and complexity. This is something you would ideally do if operations were in-house but taking it to another team eliminates the hassle and maximizes productivity.

9. Industrial Solutions

The experience contract manufacturers bring may help you identify niche, innovative, and improvised design solutions in your sector. For instance, suppose you wish to make a particular surgical device. You can find a medical contract manufacturer with specific industry expertise to create your product, sometimes at a higher quality than you would be able to if you did it all yourself.

10. Accurate Cost Estimates and Deadlines

Quality contract manufacturers should give you a clear budget for the entire process. The manufacturer will provide a thorough cost estimate upfront. Their experience with the process means you’re less likely to encounter unexpected costs or delays.

Contract manufacturers offer many benefits, but they must be skilled and experienced. Find a reliable contract manufacturer with industry knowledge to maximize your benefits when you partner with East West Basics today.

Overseas manufacturing may involve several different types of suppliers, some of which include traders, importers, buying agents, wholesalers, and factories. Knowing the difference between the types of suppliers is crucial for choosing and engaging with the right fit for your line of business. Choosing a supplier can be challenging, especially if it’s your first time sourcing and manufacturing from Asia. The key is to find a reliable supplier with whom you can establish a long-lasting relationship. Let’s examine the different types of suppliers and their key differences.

1. Traders & Trading Companies

As the middleman between a manufacturer and a customer, traders and trading companies work directly with manufacturers to supply the products. Traders typically make it easier for customers to acquire products from factories because of their previously-established relationships with factories, existing network, and understanding of the local Chinese market.

Traders and trading companies can be split up into several different types of suppliers, each of which offers a set of benefits and possible disadvantages. Working with a trading company facilitates remote business and communication while offering customers low-cost purchasing solutions. What’s more, trading companies can also be instrumental for identifying hard-to-find suppliers.

The type of trading company you work with makes all the difference. Low-value trading companies may not have the same level of project management and accountability as high-value trading companies. With high-value trading companies, however, you’ll likely be subject to higher markups on the products they supply.

East West Basics has access to a host of different types of suppliers, which gives our customers plenty of options when it comes to navigating the sourcing and manufacturing space. We’re always adamant about presenting the highest quality solutions to our clients, but we know that there may be times in which that comes at too hefty a price point.

High-value trading companies are typically better suited for larger product design and manufacturing enterprises that need support with supply chain management, logistics, quality control, intellectual property protection, economies of scale valuable to buyers and sellers, financing solutions, distribution channels, and domain expertise.

2. Importers

People and/or companies that bring goods into countries from abroad are considered importers. Whether US or based somewhere else, importers have the home-base advantage. Importers purchase raw materials and partially-completed goods from foreign suppliers. Companies partner with importers for their local presence, cultural awareness, strong understanding of the market, and business acumen. The downsides to working with an importer as your chosen type of supplier may be their proximity from manufacturing facilities, which could result in higher overhead should extensive changes be required.  What’s great about working with East West Basics is our international reach. We make it easy for clients  to acquire the goods they need wherever they are in the world.

3. Buying Agents

While not necessarily a type of supplier in their own right, a buying agent acts on behalf of suppliers to tender negotiations and execute contracts. Buying agents or representatives may supply some of the services above and usually work on a contract or exclusive basis based on cost plus, so they have less financial exposure. Their benefits include transparency, consolidation, and risk reduction for all parties, which can be instrumental when searching for a supplier partner.

4.  Wholesalers as Suppliers

The most common type of supplier may be a wholesaler, which acquires in bulk and sells in smaller quantities. Wholesalers generally work with western companies with warehousing in America, Europe, or Australia. Using a wholesaler as your supplier may reduce lead times, risk, and order amounts, making it the perfect solution for manufacturing smaller quantities. The downside to working with wholesalers as suppliers is that doing so often incurs an increased cost.

5. Factories as Suppliers

Working directly with factories to make a product is the most cost-effective way to go about securing the goods you’re looking for. That said, it may not be the easiest option. Going straight to a factory means you have to screen several possible suppliers to find qualified factories at low prices. In addition to plant inspections, this process takes time and manufacturing expertise. The best thing to do in this situation is to work with a sourcing and manufacturing expert company like East West Basics.

Choosing asourcing, manufacturing, and procurement firm that offers timely product development support, intellectual property secrecy, and reduced manufacturing risks and costs without compromising quality can be a challenge. That’s why East West Basics exists. We’re here to help you choose the right type of supplier in China and beyond.

Diving into the world of sourcing? You might have seen the acronym ‘MOQ’ pop up every now and then. MOQ refers to Minimum Order Quantity, and it is what most manufacturers will institute so that you will commit to buying enough of a type of product to make it worth their while to manufacture it. Think of the eggs you’ll pick up at supermarkets – it is simply not efficient to sell eggs individually when you think about transporting the product, packaging costs, and so on. The same logic applies to the MOQ. Here, we take a closer look at MOQ and what you should know about it.

Types of MOQs

Simply put, the MOQ is the least number of units that a supplier is willing to accept an order of at a single time. Factories can institute different MOQs for different order types. For example, a supplier might have an MOQ of 1000 units. You will be unable to buy less than 1000 units of inventory at a time, no matter what, because of this MOQ defined by the supplier.

Coming up with an MOQ

There is no standard MOQ amount, given the large variance in products and markets. The steps below can help you with calculating an appropriate MOQ for your product.

• Determine the demand of your product. What is its competition, what seasons does it sell the best in, and how well does it sell in general?
• Calculate your break-even point. What is the lowest dollar-amount you are willing to charge per unit in exchange for a higher order value?
• What are your holding costs? Certain products might be more expensive to store than others. You will need to figure out how much space you need to store your products and how long you can expect them to be in storage before you can sell through them. You will then need to determine if the MOQ your merchant is offering is feasible and cost-effective to hold.
• Track your past trends. If you are negotiating your own MOQ with your supplier, track your past trends to estimate how much you can sell. Perhaps you need to sell at least 150 units to make a profit? Are you able to sell 200 units of your product easily? Take a look at your past performance to inform your next steps.

Pros and Cons

The pro of an MOQ is that it provides both you and your supplier with a very clear standard to work with. An MOQ should be the most cost- and labor-effective option for both of you. A con is that if you are unable to sell through the units you purchase (or sell enough to make a profit), you will be at a loss, and your products may sit idle in holding spaces that will cost you more money. If negotiating an MOQ for private labels and branded products sounds daunting, you can contact East West Basics to help you navigate the process.

Are you an eCommerce seller? If so, it is recommended that you secure products to sell at a healthy profit margin. Some sellers may prefer to source their products from the United States, but the US is still unable to compete with China due to their highly competitive prices. Sourcing products from China typically allows for greater margins and higher profit. Below is a guide to sourcing products from China.

Finding a Supplier from China

Sourcing your products from China is cost-effective but the process itself is not straightforward. You will need to find manufacturers (of which there are plenty) and understand how factory pricing affects your own ability to make a profit.

After this comes the negotiation process, where you and the manufacturer will have to settle on an inventory at a price that suits you both. Before you even get to that stage, your manufacturers will want to know that you will order the products at a volume that will make their labor worth their while. The environment is highly competitive, and you’ll want to be able to stand out from the competition.

Before you order the product, it’s also vital to assess a sample. Asking for product samples allows you to conduct quality inspections to ensure that these items meet your expectations. In some cases, this step can be challenging if communication errors occur. If you want to avoid such issues and potential delays, it is better to work with a China sourcing expert.

Does all this sound laborious? You will also have to confront the barriers of language, customs, and all things that come with being physically across the world from your supplier. While this can feel daunting, the good news is that China sourcing does not have to be a process you undertake on your own.

At East West Basics, we have 24 years of experience when it comes to developing and sourcing products in Asia. We have a strong global network of clients as well as relationships with 500+ factories to ensure that we can match you with the most appropriate one for your products.

If you’re ready to step into the world of eCommerce, contact us today to get started.