vonsteimel
Mechanical
- Oct 19, 2010
- 132
I work for a small company (approx 20 employees) manufacturing unique recreational vehicles.
Recently we've had multiple Chinese companies/individuals purchase our products. They all want to be dealers, by where they buy a certain amount of products & receive a pre-neg discount which will allow them to resell at a higher cost for make profit. Some have been given dealership agreements.
We thought they were probably going to counterfeit. Being a small company, there is not much we can do stop counterfeiters in other countries despite what some may say or think. It would not be the first time we have been counterfeited. So we decided to sell them to get some money out of it regardless of what happened.
Most of the Chinese companies/individuals are re-selling them to various branches/outlets of the the Chinese government. It seems that they offer "under the table" bribes/kick-backs" to the officer/manager of the given government branch that it interested in buying the product. And which ever dealer offers the most rewarding kick-back will often get the sale even though they may be selling the product at the highest price (obviously the kick-back just gets tagged on to the end-price of the product).... Anyway.....
Each of these companies/individuals are currently manufacturing and/or selling other quasi-similar products, as the sale qty from our products alone are too small to support a decent sized business.
However, to our knowledge they have not copied or counterfeited the products. We've went to China and visited their factories & businesses.etc They have our products and are capable of reverse engineering, copying and manufacturing them. However, they seem bent on setting up some type of deal where we "endorse" them to manufacture our these products in China for sale in China. This involves us giving drawings & technical support.etc However our product is not all that complex (probably about as complex as your average motorcycle) so it is not as if they cannot reverse engineer it themselves.
They are willing to export I think but seem to be interested in Mfg for sale in China. They don't seem too interested in manufacturing specific components and exporting to us. They tend to want to manufacture the whole/final product.
I was wondering if anyone had any experience with business in China. Is the government offering a reward or subsidy for bringing outside/foreign & "endorsed" manufacturing into China?
Something worth noting; We do not offer protection to the dealers, thus 2 or more dealers may open in the same area/country and compete with each other as is the case here. Perhaps if a dealer can become a manufacturer of the product they will win the monopoly of selling our product?
Recently we've had multiple Chinese companies/individuals purchase our products. They all want to be dealers, by where they buy a certain amount of products & receive a pre-neg discount which will allow them to resell at a higher cost for make profit. Some have been given dealership agreements.
We thought they were probably going to counterfeit. Being a small company, there is not much we can do stop counterfeiters in other countries despite what some may say or think. It would not be the first time we have been counterfeited. So we decided to sell them to get some money out of it regardless of what happened.
Most of the Chinese companies/individuals are re-selling them to various branches/outlets of the the Chinese government. It seems that they offer "under the table" bribes/kick-backs" to the officer/manager of the given government branch that it interested in buying the product. And which ever dealer offers the most rewarding kick-back will often get the sale even though they may be selling the product at the highest price (obviously the kick-back just gets tagged on to the end-price of the product).... Anyway.....
Each of these companies/individuals are currently manufacturing and/or selling other quasi-similar products, as the sale qty from our products alone are too small to support a decent sized business.
However, to our knowledge they have not copied or counterfeited the products. We've went to China and visited their factories & businesses.etc They have our products and are capable of reverse engineering, copying and manufacturing them. However, they seem bent on setting up some type of deal where we "endorse" them to manufacture our these products in China for sale in China. This involves us giving drawings & technical support.etc However our product is not all that complex (probably about as complex as your average motorcycle) so it is not as if they cannot reverse engineer it themselves.
They are willing to export I think but seem to be interested in Mfg for sale in China. They don't seem too interested in manufacturing specific components and exporting to us. They tend to want to manufacture the whole/final product.
I was wondering if anyone had any experience with business in China. Is the government offering a reward or subsidy for bringing outside/foreign & "endorsed" manufacturing into China?
Something worth noting; We do not offer protection to the dealers, thus 2 or more dealers may open in the same area/country and compete with each other as is the case here. Perhaps if a dealer can become a manufacturer of the product they will win the monopoly of selling our product?
