How Much Will It Cost to Develop a New Product in Asia?

How Much Will It Cost to Develop a New Product in Asia?

This is another question we get rather frequently. The short answer? It depends.

Some clients require the full range of our services, while others may have already had some of these done in their own country, like for instance the industrial design work. Regardless of what stage you’re project is at, one thing is certain: you can expect significant savings having your device not only manufactured in China or Taiwan, but also developed here.

Costs will of course heavily depend on the complexity and size of the product. Some products may incur $120,000 of Non-Recurring Expenses (NRE), which includes engineering, mold making (for the housing of the device), prototyping, and certifications. More complex products with a lot of programming can run in excess of $500,000. And, if you haven’t already heard, volume is king in China, and few factories in China are willing to take orders below 5,000 pieces. At Titoma we realize that especially on shorter run products the NRE investment weighs heaviest, so we also help our clients do lower quantity projects, as long as the first order is worth at least US$150,000.

But, despite the savings of having development and manufacturing done in Asia, the capital needed to develop a new product can still be significant considering it may involve most or all the following:

  • Industrial Design
  • Mechanical Engineering
  • Electronics Engineering
  • Firmware Programming
  • Software Programming
  • Prototyping
  • Certifications
  • Tooling/Mold Making
  • Manufacturing
  • Packaging

 

And of course aside from development and manufacturing costs you also must take in consideration the cost of shipping the goods (generally about 5% of value), VAT tax in your home country, trade shows and marketing, etc. With all these costs, it’s a wonder why anyone would want to develop their own product!

But they do. (Another articles you may also enjoy reading:

1: 10 Ways to Lower the Cost of Your Electronic Product
2: Kickstarting electronic products: How Crowdfunding Works

The Silver Lining

We’ve been in this business long enough to know that the success of a product doesn’t depend fully on a single good idea. Product development is about fitting all the pieces of a puzzle in just right way. If one piece doesn’t quite fit, the whole project fails. But once everything fits into place–and at just the right time, mind you, especially since the market window in electronics can close quickly–then the rewards are frequently considerable.

<ahref=”http://www.titoma.com/contact/”>Please contact a Titoma representative for more information, a quote, or other inquiries.



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GET IN TOUCH

United States of America

Phil Baker - US Representative for Titoma Product Development in China

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

Taiwan (Headquarters)

Case Engelen - Taiwanese Representative for Titoma Product Development

Case Engelen, CEO
rfq@titoma.com
+886 2 8698 1249
18F, No.75, Xintai 5th Rd.,Section1, XiZhi 22101 Taiwan
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The Netherlands

Stef Traa - Your Dutch Representative for Titoma Product Development in China

Stef Traa
stef.traa@titoma.com
+31 6 2939 8629
Kapelstraat 9, 5298 CT Liempde, Netherlands

Switzerland

Ronald Hartmann - Swiss Representative for Titoma Product Development in China

Ronald Hartmann
ronald.hartmann@titoma.com
+41 21 801 63 70
Route de la Gare 9, 1131 Tolochenaz, Switzerland

France

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

Alain Traverso
alain.traverso@titoma.com
+33 954252001
Ter Rue du President Wilson 57, 78230 Le Pecq, France

United Kingdom

Tim Pepper - UK Representative for Titoma Product Development in China

Tim Pepper
tim.pepper@titoma.com
+44 7776 142228
Ash House Business Centre, TW2 5RF Twickenham, UK

Italy

Daniele Fulingo - Italian Representative for Titoma Product Development in China

Daniele Fuligno
daniele.fuligno@titoma.com
+39 335 307 196
via Carnevali 6, PU 61100 Pesaro, Italy

Sweden

Markus Olson - Swedish Representative for Titoma Product Development in China

Markus Olsson
markus.olsson@titoma.com
+46 763187952
Sofierogatan 1, SE-21217 Malmö, Sweden

Colombia

Soleyda Manrique - Colombian Representative for Titoma Product Development in China

Soleyda Manrique Naranjo
soleyda.manrique@titoma.com
+57 312 774 9772
75A-33 Carrera 21, Manizales, Colombia

China

Howell Wang - Chinese Representative for Titoma Product Development

Howell Wang
howell.wang@titoma.com
+86 755 2876 5963
1571, 1002 Keyuan Road, 518054 Shenzhen,China