Why do hardware startups run into problems when launching new products?

China offers creators, entrepreneurs, and hardware startups the manufacturing infrastructure to handle new product manufacturing, but it’s the preparation and management of mass production that often leaves hardware startups & SMEs over-budget and running behind on delivery.

One only needs to visit Kickstarter or Indiegogo to see the abysmal proportion of projects that are not delivered on time due to unexpected problems and extra costs.

Inexperienced founders are overly optimistic about the capabilities of Chinese manufacturers and about the ‘readiness for production’ of their new product design.

99% of Chinese manufacturers want to go to mass production as soon as possible, even if this has relatively high-quality risks. They are consistently over-enthusiastic and tend to under-deliver on their promises.

Subsequently, hardware startups don’t see all the risks, don’t challenge predictions and reassurances, and don’t enlist the assistance of people who have done it before. They also have pressure to get first to market and increase the product ROI (Return on Investment) by an early introduction.

We’ve seen people in this position in our home city of Shenzhen and the rest of China get burnt too often, so this is why Sofeast’s production engineers and project managers specialize in new product introduction (NPI) and design for manufacturing (DFM).

What happens if some of the design work Sofeast’s team does leads to production problems?

Our liability is limited to the amount of fees you paid to us for the particular job that led to that issue.

The most important thing to focus on is to find ways to avoid such issues or to detect them through reviews and reliability testing. As a general rule, all design changes have to be approved by your side and their impact has to be evaluated with a proper testing plan.

You understand that, if we provide services for 1,000 USD, we can’t accept liability for 1 million USD. We are not aware of any company that accepts this level of risk. However, naturally, we will do the design work to correct any mistake for free.

Who owns all the intellectual property generated when Sofeast does design/engineering work for us?

You pay for that work and you own all the resulting deliverables.

The only exception is the templates we have developed over the years — you do not have the right to re-use them.

We have a product idea and we might have to make it in China. What next?

First, you will need more than an idea. At the very least, get a first version of the design, as well as a general description (intended use, etc.) on paper.

Second, before sharing the design with anybody, make sure to have a solid agreement in place that targets all the usual risks (not your standard non-disclosure agreement).

Third, you might go in the wrong direction and spend many months working with the wrong type of suppliers and, in the end, get nowhere. Talk with a company like ours. We have worked with a number of people who were in your situation.

You may also like our guide to manufacturing a new product in China.

Can Sofeast help us with the certification of our new product?

Yes. And this should be planned from the design stage. Many projects have gone very far into prototyping and even production, only to be dropped because they had to get back to square 1… a new iteration of the design that takes certification constraints into account.

We have experience with the most common types of certification for the US and Europe.

Learn more about certifications and compliance here: Compliance Testing Consulting

Can we send Sofeast our new product design before we send it to a Chinese manufacturer?

Yes, for several reasons.

Because you might need to make changes to your design to make it easy to manufacture in China or to have a chance at hitting your budget & timing targets.

👉 Our product engineers are ready to help if you need assistance with product design and development.

And because you need to know what type of supplier you should work with even before starting the search:

  • OEM? ODM, already making a very similar product? Contract manufacturer?
  • Small, midsize, large?
  • Past experience in a certain critical process or technology? In your country’s compliance standards?

👉 Listen to this episode of our podcast about supplier selection.

 

Can Sofeast help develop and source our packaging?

Yes, we can!

Our in-house R&D team has experience in designing and testing packaging.

We will either source the designed packaging from local manufacturers or may be able to manufacture it ourselves, too.

Packaging actually shouldn’t be an afterthought – it’s an important part of the new product launch project, as it both protects and advertises your product. With this in mind, we created this guide to common packaging types to help you decide what’s best for your products.

 

Does Sofeast develop new products in return for equity shares in the business?

No. We work on a purely on-demand basis.

You select which of our solutions you want to purchase, pay, and we do the work. We don’t do work in return for equity shares in hardware startups’ businesses.

Please note, any product IP generated belongs solely to you as you have paid for that. We do not retain your product IP after you have finished working with us.

If you need support to move your hardware startup and product idea forward in return for equity shares, finding an incubator or hardware accelerator could be the right move for you.

Can you help us register patents or trademarks in China?

Not directly, however, we do have a list of partners including law firms and companies who specialize in Chinese business matters such as trademark registration whom we can put you in touch with.

Roughly how long will it take to produce our new hardware product?

This is a really difficult question to answer as every new product launch project is different, however, we’ll try to give you some ballpark figures.

  • Engineering design: 15 days to 6 months
  • Accelerated life testing on prototypes and iterations until a final approved prototype: 1 to 3 months
  • Tooling fabrication: often around 6 weeks
  • Pre-production preparation, including pilot run(s): 1 to 3 months
  • Mass production (first batch): 1 to 3 months

Note: we typically help clients after the industrial design has been completed.