China drives down prices & lead-times at dizzying speed

China drives down prices & lead-times at dizzying speed

As Ben Joffe shows in his presentation below, prices of quite a number of consumer products have come down very rapidly. The XiaoMi Yi camera for example equals or bests the GoPro Hero on virtually all specs, while selling for just $65. Mind that the prices listed in the graph are China retail prices, in the US it sells on Amazon for $97.

Another important aspect is the increasing speed at which products come out. As Chris Anderson, CEO of 3D Robotics, is quoted: “Before you had six years, now you have six months“.

Exciting and scary at the same time, China’s supply chain is clearly still unparalleled, especially for anything custom: housings, LCD displays, batteries, PCB’s, packaging…

The first samples and production batches of custom parts often have issues. To avoid being crippled by shipping costs and delays, final assembly needs to be done close to the factories making the components. And when you’re having most of the parts made and assembled in China, nothing makes more sense than having the design done there as well.

The trick of course is to harness the power of this supply chain beast to reap the benefits while avoiding IP infringements and other China manufacturing pitfalls.



INSIGHTS

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Phil Baker - US Representative for Titoma Product Development in China

Phil Baker
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+1 323 886 9446
546 Canyon Drive, Solana Beach, CA 92075 USA
author of “From Concept to Consumer: How to Turn Ideas Into Money”

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Ronald Hartmann - Swiss Representative for Titoma Product Development in China

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Allain Traverso - Case Engelen - French Representative for Titoma Product Development

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Markus Olson - Swedish Representative for Titoma Product Development in China

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Soleyda Manrique - Colombian Representative for Titoma Product Development in China

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Howell Wang - Chinese Representative for Titoma Product Development

Howell Wang
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1571, 1002 Keyuan Road, 518054 Shenzhen,China