Imports Oriental Blog

International apparel manufacturing and sourcing. If we don't make it, we can find it.

Posts Tagged ‘textile manufacturing’

Don’t try to compete on cost alone – add value!

Tanya Crossman

Tanya Crossman

The following story comes from an old post on China Law Blog. I re-read the post recently and wanted to share the story – it’s a China classic.

There’s a story I often tell clients regarding China pricing. Co-blogger, Steve Dickinson, is a long time friend of a very successful Chinese factory owner in Shandong Province. Steve visited his friend at his factory one day and his friend complained about how his fans were so noisy and were always breaking down. Steve commented on their incredibly poor quality and the owner noted that they cost about USD$10. A few months later, Steve returned to the factory with a gift: a $250 top of the line American fan. A few more months later, the factory owner told Steve that the fan had increased worker productivity because they could now hear their music. And every few months for years, this factory owner brags to Steve about how well the fan is working and how long it has lasted. It is not an exaggeration to say this one fan taught this factory owner the benefit of not buying strictly on cost.

Reading the description of workers enjoying their music while working reminds me of a visit I made to one of our suppliers’ factories. He showed us around a newly renovated sewing room, where 20+ seamstresses worked on different parts of children’s pajamas for export to South Korea. A radio played the ladies’ favorite station, entertaining them as they worked. Then I spotted a sole young man in the sewing room. He sat at his machine, in a room full of women – listening to his own music through headphones. I wonder how many weeks he spent listening to music he couldn’t stand before coming up with that solution!

Back to the subject, though; the post talks about how foreign companies cannot compete with local operations on cost alone – very true. In fact, one of the reasons that IP theft is such a problem is that once a local factory has learned how to make your product, they can offer it directly for a much lower price. To compete, you must offer something that is of greater value than a cost saving.

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Posted in : Business in China, International Business, Manufacturing

Washing Care Icons – do YOU know what they mean?

Tanya Crossman

Tanya Crossman

Today I want to share something a little different with you. The Telegraph (a UK newspaper) published an article online last month about care labels on clothing. It turns out that very few people can decipher the detailed instructions conveyed by care icons.

Care icons are supposed to simplify instructions – to allow consumers to understand how to care for their clothes properly, regardless of language. If no one can read the language of care symbols, however, they aren’t doing their job.

Nine in 10 people are unable to decipher common symbols used on clothes labels. . . A third of people surveyed said that they recognised none of the six symbols shown. . . Just 10 per cent sign knew the sign for “do not dry clean”, while only 12 per cent were familiar with “drip dry only”.

The statistics are based on a survey of 2,000 people in the UK, who were shown 6 care symbols and asked what each meant. I must admit, I did a terrible job myself.

It makes me wonder why awareness is so low. Is the system of symbols too complicated? Do a large percentage of people simply not care about the best way to care for their clothes?

Awareness was highest among 18- to 29-year-old women – for whom taking care of clothes is clearly important.

I think the conclusion that these women are more careful with their clothes is a logical assumption, but we don’t know that for sure. At any rate, it’s interesting to me that younger women are more familiar with care symbols than those who have been doing laundry for decades.

It would be helpful to find out HOW they know what the symbols mean. Are they working in clothing retail and have been trained to know? Are they researching what the care icons on their own clothing means, so they can care for them in the best manner? It’s even possible they know which items will be difficult to care for before making a purchase.

Personally, I try to select clothes that are easy to care for; I have in the past rejected items I liked because I knew I wasn’t willing to iron them every time I wore them, or to always dry clean them. Even if I understood perfectly how an item should be cared for, chances are I wouldn’t change my laundry routine for it.

What about you? Do you understand the washing care icons on your clothing? Do you care?
Why do you think younger women are more aware of care icons?

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Posted in : Textile Industry

Does Negotiating Low Prices lead to Lower Product Quality?

Danny Coyle

Danny Coyle

Renaud at Quality Inspection Blog ran a post last month discussing how price negotiations can sometimes have a negative impact on production quality. The basic idea is this: if you negotiate a very low price, a supplier may get the margin he needs by skimping on the quality of the end product.

“A Chinese factory has intense pressure to grow up fast. Every day they hear stories of other manufacturers that achieved impressive growth with aggressive tactics. The temptation to do the same is very strong…  importers should not count on a supplier’s ethical standards.” (read the article here)

Recently we ran into a similar situation when we negotiated the price for a new product with a supplier we’ve been using for 5 years.  He’s developed a lot of his processes and quality control measures because we have sent our own people to his factory to help him do it.

The new product is expected to sell hundreds of thousands of pieces.  So we asked him to give us his best price and continued to put pressure on him to give us a rock-bottom price.

He began to manufacture the product (after sampling) and gave us the first samples off the line.  We received them and they were sub-standard.  Basically, they were falling apart at the seams (literally).

I called him and asked what was going on.  He complained that we had driven the cost so low that this is what we get for that price.  I told him that after 5 years of training him on our quality standard he decided to abandon it.  He knows we don’t accept product like that.  He gave me the ultimatum (take it or cancel it) and I hung up on him.  A few hours later, our staff found a way to solve the problem, communicated it to him, and he’s back on board.

So it’s not always a price issue, sometimes it’s just a China issue!

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Posted in : Business Ethics, Business Relationships, Business in China, Entrepreneurs, Export, International Business, Manufacturing, Textile Industry

Knitwear: It’s all about Details and Service

Danny Coyle

Danny Coyle

Our business focuses on Textiles and Garments.  We started in jewelry, but now we only specialize garments and textiles. For about 5 years we focused on woven garments, but in the last year we’ve shifted to knitwear items.  The difference between our two lines of business is much greater than I expected.

Our woven apparel business is product-based.  We have a few core products with item codes; a customer can tell us the code # they want, and buy that product with minimal customized adaptations.

Knit apparel is a totally different story. It’s all about service and details. The customer’s need to get a long list of details exactly correct makes it hard for overseas buyers to source knitwear from China without going to a large, established, expensive factory with large minimum requirements..

A long list of details

A typical knitwear order with 5-10 styles could have as many as 1,000 individual details to receive from the buyer and then execute and monitor.  These details include:

  • garment measurements (20-30 per style)
  • garment style and construction details (yarn tension, knitting style, design elements)
  • manufacturing details (requirements for washing, drying, and ironing)
  • yarn details (color, composition, handfeel)
  • accessories

Then there are all the other details involved in international trade deals, such as:

  • Documents required by the customer
  • Labeling
  • Packaging
  • Payment terms
  • Shipping

Every one of these details has the potential to destroy an entire project.  While this may also be the case in many other industries, knitwear manufacturing includes a variety of subjective criteria that that cannot be quantified – suitability is up to the opinion of the buyer.  Handfeel variations, color variations, and even measurement tolerances can be acceptable to one buyer, and unacceptable to another.

Managing the varied and subtle details is a very complex undertaking. It is impossible to cover all your bases from a distance. This is where we come in, with a blend of foreign expertise and hometown advantage.

Where service comes in

Our job is to fully understand all aspects of the project, effectively communicate all requirements to the relevant parties, then monitor each stage of the process to return finished products in line with customer expectations. In short, we oversee and manage the entire project, from start to finish.

We take the detailed instructions we receive from our customers and explain them to all the suppliers involved – dyeing factories, knitting factories, after care providers, etc. We frequently work with smaller factories as they give the time and attention to detail that is required for smaller orders, without the higher costs associated with large factories.

The communication hub we provide creates benefit on all sides. Our foreign staff walk customers through the details of each style with greater effectiveness than a small factory owner could. Our local staff communicate with small factories more clearly than a foreign buyer could.

By using our services, our customers leverage the benefits of boutique factories while keeping their costs down.

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Posted in : Business in China, Knitwear, Manufacturing, Textile Industry

Should you choose to partner with Big Factories or Small Factories?

Danny Coyle

Danny Coyle

There are big differences in the way large, established factories operate, as opposed to smaller boutique-style factories. To choose the best manufacturer for your products, you must weigh the pros and cons.

From our experiences with manufacturing in China, we almost always choose to use small factories rather than big ones.

Here are a few reasons why:

  • Lower minimums
  • Usually cheaper
  • More flexible
  • Unaccustomed to working with Chinese-speaking foreigners (find it interesting)
  • More readily adjusted to our way of doing things

Flexibility

When choosing a factory, you must consider his attitude to project changes. A big factory requires its customers to be very precise and orderly. These factories do not like to take on a project unless all details are clearly confirmed up front. This sort of factory is uncomfortable proceeding on verbal instructions, especially when the orders are large  – they won’t just trust a foreign buyer’s word that this new method will work, or this new idea is going to sell big.

Of course, the smaller factories have their own set of headaches. Very few have English-speaking staff. Not all have adequate quality control systems in place. In manufacturing the types of products we sell, however, flexibility and responding to unknowns on the fly is important. Our bigger factories have a harder time with this. The flexibility we gain in working with smaller factories is worth the losses in other areas.

Guanxi

The most significant gain in doing business with smaller factories is guanxi. Guanxi, or relationship, is more easily built with smaller factories, as usually there is one factory owner you will deal with. All the accommodations made on both sides are carried forward with the same working relationship. When that one owner likes you, you have it made (although the converse is also true).

This is because the owner of a small factory is usually directly involved in production, overseeing all steps involved. Rather than an aloof observer waiting for information to be passed to his huge corner office, the small factory owner will hopefully be on the factory floor working with your order hands-on.

Communication is clearer and progress made faster, too, as you always talk with the decision-maker, not a salesperson who isn’t involved with production. Messages don’t have to be passed along the line, chewing up time and delaying progress.

If you experience headaches working with big companies, try a small one.  They have worked out for us.

Do you prefer working with big factories or small factories?
What other pros/cons have you noticed?

7 Comments

Posted in : Business in China, Manufacturing, Textile Industry

1 Country, 2 Systems: Compensation for Errors in the Chinese Manufacturing Industry

Danny Coyle

Danny Coyle

Chinese manufacturers know that foreigners do business differently. Some suppliers will try to use the Chinese method, but switch to the foreign method when that gives them a better deal.  Don’t get suckered into a 1 country, 2 systems business relationship.

The Chinese Way vs. the Western Way

As foreigners, we are so quick to think the western way is better, without really understanding the Chinese way.  Understanding the Chinese way helps you manage expectations and smoothes dealings with suppliers.

Delays are part of the game of manufacturing in whatever industry you are in.  Problems happen.  How we (foreigners) deal with those problems is what makes us different.  Not better, just different.

When a mistake is made, westerners generally expect immediate payback. When a problem happens in a Chinese factory, the payback rarely happens immediately. Compensation is not directly related to the problem itself.  The payback usually happens in the long term. While you may expect a discount on the order your factory made a mistake on, that does not always fit the Chinese model and may not happen.

I learned this more than ever last week.  We’ve had a few minor hiccups with one of our factories.  These problems were more annoying inconveniences than setbacks and deal breakers. If I was dealing with a foreign company, I’d probably ask for a discount on the invoice value.  I understood, however, that asking for monetary discounts or compensation on this order was not going to get the point across.  I realized that my payback was going to come on the next order.

Asking for an immediate response in the form of a discount would probably just insult the factory manager, and do more long term harm than good. So I’ll be content for the time being knowing that my return is coming on future orders.

BUT.

A Chinese factory may want to cheat the savvy foreigner over by combining the western and Chinese methods.   What we are talking about here is relationship (guanxi), so on my next order, I should experience an increase in ‘guanxi’.  That means he pushes my order to the front of the queue, or puts a few more laborers on our products and gives my order a little bit more time and attention.

If you are still getting a lack of attention, a high price, or further delays from the factory on the second order, then something’s wrong with the relationship. He took all the benefits of the Chinese way on the first order, and all the benefits of the western way on the second order.

The Conclusion

When the minor annoyances happened, I explained to my staff that we will pick only one way to deal with this problem. We will either do the Chinese way, or the Western way, but not both.  If he wants to give us a discount, great!  And if he wants to give us better service on the second order, fantastic.  But we must have one of those options (and preferably both) on future orders.

For China-savvy manufacturers: don’t let the “1 country, 2 systems” strategy infect your manufacturing processes!

Have you ever encountered a supplier trying to get the best of both worlds, at your expense?
What strategies do you employ when a mistake is made on your order?

Disclaimer:
I read an article that had a few sentences discussing the Chinese way of ‘payback on later orders’ idea on another blog; I think it was on Chinese Negotiation.  After my experience last week with our factory, I decided to write this article but can’t find the exact post I’d like to refer to.

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Posted in : Business Ethics, Business Relationships, Business in China, Manufacturing, Textile Industry

Creating and Enforcing Quality Standards

Tanya Crossman

Tanya Crossman

A quality standard is essential, no matter what you are manufacturing, or where you are manufacturing. Creating a quality standard that accurately reflects your requirements for the finished product is a very important step. Creating that standard is not enough, however. It must be communicated and then, most importantly, enforced.

Renaud at Quality Inspection Blog posted an article last week that is a great rundown on creating and enforcing quality standard for manufacturing, specifically in China.

He gives four steps to help in the process:

1)  Insist on getting a “perfect” sample

2) Define tolerances wherever applicable

3. Set a limit on the proportion of defects

4. A quality standard suffers no exception

The first three steps all happen before production begins. This is important to note. Doing your homework and putting quality systems in place must happen BEFORE you pay a deposit and production begins. Once you have built rapport with a factory over time, this may be less important, but for a new factory or a new product it is essential.

The “golden sample” is much talked about. Manufacturers in China will often produce a very good initial sample in order to clinch an order, knowing that final production will be of a different quality. It is hard to hold the factory to the original sample when final production is half done. Factories know it costs time and money to go back and correct the standard.

In China, and in South-East Asia in General, factories know that sending very nice samples is what helps them get orders. These perfect samples (prepared by experimented technicians who take their time) are usually better that what can be made in mass production.

Renaud’s call to obtain a perfect sample works, however, because of his suggestion for what to do AFTER getting that perfect sample:

You should write a note about what has to be EXACTLY similar to the perfect sample (e.g. the overall outlook, the color, the function, etc.) and get your supplier to sign it.

This technique might not guarantee the factory sticks to the quality of the initial sample, but it is certainly better than nothing, and gives you leverage in any negotiations later on.
Renaud’s fourth and final point happens after production has begun, and quality inspections start. Having a quality standard meticulously outlined is of no use unless it is also enforced. Renaud starts with a hypothetical situation that is all too common in real life:
Let’s say a supplier is late, you negotiate a delay with your customers, and before shipment you notice that quality is less than desirable. You still prefer delivering the products, rather than cancelling the order. So you tell your supplier that he can ship out and that next time should be better. The problem is, the “exceptional tolerance” will become the de facto standard for the factory. Count on them to remember that you can accept less-than-perfect products.
The phrase “count on them to remember” really strikes me. By accepting products below your stated quality standard, you set a new standard. While sometimes the importance of shipping on time while outweigh the desire for top quality, make sure you take into consideration the possible implications on your long term relationship with the factory. Will accepting short term hassles save you problems in the future?
Chinese manufacturers tend to have a “can’t do” attitude after an order production has started. Two of their favorite expressions are “cha bu duo” (it’s off, but not by much, so you should accept it as is) and “mei ban fa” (there is nothing we can do about it now, no need to keep pressing this issue). You should fight their natural inclination. Ask for re-work and re-inspections, even if it costs you 10 days. This type of efforts pay off handsomely in the long term, as long as the factory can reasonable achieve your quality standard.

It’s important to note that final point: “as long as the factory can reasonably achieve your quality standard”. Creating and enforcing a quality standard only works as long as you check out the manufacturer before you begin, to make sure that they are capable of the standard to which you wish to hold them.

Read the full article here.

What tips do you have for creating quality standards?
How have you enforced your quality standard with manufacturers?

2 Comments

Posted in : Business in China, Export, International Business, Knitwear, Manufacturing, Textile Industry

A Beginners Guide to Manufacturing Knitwear in China – Peak Season: Part 2

Danny Coyle

Danny Coyle

Steven Weng

Steven Weng

In part 1 we looked at the three main areas of knitwear production (sampling, yarn dyeing, and knitting) and the delays often encountered during peak season. Now let’s take a look at some other ways that knitwear orders are commonly delayed, and some ways to keep your order on track.

(For points 1-3, please see part 1)

4.  After Service

After care includes a range of services such as washing, ironing, inspection, labeling, and packaging. Each of these after care processes is important for adjusting the hand-feel, size measurements, and minimizing defects. For small factories, these steps will be done at a different location to the knitting process.

Many of these after-service factories are linked with the output of the knitting factories. They can usually scale their production up and down quite easily since the processes are less technical and less time-consuming. This means you are less likely to get stuck in a queue behind other orders being processed.

The main reason delays occur at this point in the process is when accessory suppliers nominated by the customer are slow to deliver. After-service accessories for knitwear products include care labels, hang tags, polybags, and outer cartons. If the accessory supplier does not deliver the pieces in a timely fashion, the entire order will be delayed. For this reason it is extremely important to think ahead when planning your order.

These minor pieces can easily be left to the last minute since they are such a small part of the order.  However, entire shipments can be rejected because of minor problems with these accessories.

5. Small Quantities

The dyeing factories are so busy during the peak season that they are often unwilling to waste time on small jobs. For dyeing yarn, you may need to accept a color from the factory’s range of stock yarn colors, or face being shunted to the back of the queue.   For knitting, it may be best to wait until the busy season has finished.  The factory will be more likely to process your order quickly, and he will be happy to get an order when there aren’t many orders in the market at that time.

6. Customer Approval

If a customer falls behind schedule on his approvals, so will production.  This is common sense, but something to plan for when schedules are put together. Make sure to allow enough time for samples to be sent wherever they need to go and add a few days extra since the customer may want to send you something back that is closer to the handfeel, color, or style that they are looking for.   It is rare that the samples will be totally confirmed on the first try.

7. Chinese Holidays

The busy season for knitwear is not during the major Chinese New Year holiday, so you won’t have to compete with other orders and a difficult holiday schedule at the same time. If you are doing production during the slow season, however, this is a consideration to keep in mind.

The Solution

1.  Get in early

The most important thing is to place your order well in advance. This will put you toward the front of each queue and lower the risk of significant delays. The downside, of course, is that it requires you to be well prepared well in advance.

Negotiate the details of the order long before production needs to begin. Three things should be sorted out right at the beginning: approval of the prototype samples, price negotiations, and quality specifications. (The lab-dips, PP samples and accessories can be approved later, when production is ready to commence.) When these three things are settled you need to confirm the order. A deposit payment will usually be required at this early stage to guarantee your place at the front of the queue.

Manage the process

When it comes to scheduling during the busy season, pay close attention to each phase of production (see part 1 for more details on these processes).  After-service still requires attention to the scheduling, but not nearly as much as knitting and yarn dyeing.

Plan for delays

Some of these delays are inevitable and unforeseeable.  The best way to solve them is to plan them into your production schedule from the very beginning or hire someone who is familiar with the problems you are facing. Understanding that you will face delays – where in the process they will come and how long they will be – will help you to create a production schedule that can stay on time.

Planning ahead gives you the luxury of time. If you expect and plan for delays they won’t be so stressful when they (inevitably) happen.

Imports Oriental has great contacts, good guanxi, and a wealth of experience in dealing with these delays.  If you need assistance navigating your orders through these murky waters, please feel free to contact us.

4 Comments

Posted in : Business in China, Knitwear, Manufacturing, Textile Industry

A Beginners Guide to Manufacturing Knitwear in China – Peak Season: Part 1

Danny Coyle

Danny Coyle

Steven Weng

Steven Weng

Most knitwear is manufactured from April to August in time for the Fall/Winter seasons in the northern hemisphere. (Late production continues through to October). The push to get large volumes produced in this short period puts pressure on every aspect of production. It can be difficult to get knitwear orders completed in a timely fashion if orders are not placed before May of each year.

Many of these principles hold true for manufacturing other products as well.

I’ve listed some of the potential areas for delays here and in Part 2 of this article.

1. Sampling

Most sampling should be done in advance of the busy period, however, the Pre-Production (PP) samples must be done immediately before production. Usually the PP samples that are given to the customer are not done on the same looms (or even in the same factory) as the actual production. These sampling looms are often operated by technicians who are superior to those that operate the production looms.  This means that they can push the samples out faster, but the quality is not indicative of the quality on the actual production line.  Furthermore, these looms used for sampling are also making samples for other orders at the same time, so you may have to wait for those samples to be done first, before they make your samples. Normally the samples will take 7-10 days to do. Delays here can add 2-3 days to the sampling stage of the project.

2. Yarn Dyeing

When dyeing lab-dips and dyeing the production yarn, there will be delays. Most delays at this stage are due to queuing up behind all the orders that were placed before yours.  The dyeing factory may promise you a delivery date for your lab-dips, but this delivery date is never fixed. Most factories will tell you that dyeing will be complete 30-45 days after the color is approved.  Remember that a top dye yarn will always take longer. Upon receiving your lab-dips, the factory may give you a timetable for the yarn dyeing, but this is not a reliable timeline, especially during the busy season.

To be frank, the whole dyeing process during the busy season is a crap-shoot. You never know how many people are ahead of you in the queue, and you never know how good your guanxi is compared to the guys in front or behind you.  So delays are inevitable. In extreme circumstances the delays can push production back 2-4 weeks.

3. Knitting

Again, during the busy season, your knitting factory may have other orders in production at the same time as your order. Production on your order will not begin until the orders ahead of yours are complete. Delays at this stage can go from a few days to a few weeks. If you allow 45-60 days for this stage of production your order should stay on time. Our production period is normally 30-45 days after the PP sample is approved.

During the busy season production is going as fast as possible on every order the factory is working on.  They are trying to make as much money as possible by processing as many pieces as possible. Factories have no spare time on the looms, and workers are working 10-12 hour shifts at their looms. Once they start knitting your order, you must make sure that the factory is concentrating on your order.  Sometimes they will only use half the looms to process your order.  This will also cause delays because the factory originally calculated the delivery time based on full production capacity.  It is important that you physically travel to the factory to make sure they are working on your order.  If they are not, you will face delays.

In the next installment of this piece, we will look at other factors that can delay your knitwear order and some ways to keep your order on schedule. Click here for Part 2.

3 Comments

Posted in : Business in China, Knitwear, Manufacturing, Textile Industry

Textile Product Inspections and Testing

Tanya Crossman

Tanya Crossman

Renaud posted a good checklist of tests for textile products. When you are arranging QC for your products it’s important to know what exactly will be tested!

Of course, some products are more complex than others. For our simplest products, the following checklist is enough for our internal QC:

  • fabric has no defects
  • custom dye color matches previous orders/agreed upon swatches
  • measurements are within tolerances
  • seams are sewn straight

For more complicated items (such as intricate sweaters with accessories), the list is far longer!

The important thing is to have an exact list of what makes a product acceptable – any item falling outside the specific limits is therefore demonstratively defective.

What is on your QC list?
How do you get suppliers/customers to agree upon the standards to be enforced?

1 Comment

Posted in : Manufacturing, Textile Industry

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