Ask the Experts: Prototypes, importing to India, due diligence

by Mike Bellamy

Question: I need a supplier and manufacturer to provide my product. If I make a prototype of it , could Global Sources make it? Just trying to understand the dynamics. Launching my product will sell large quantities and I can not make it all myself. I have contacted some suppliers however I need something cohesive. So customers can purchase on my site without hassle. Any info is appreciated. Thank you.

MB: Thanks for your question.  Global Sources, at its most basic level, is a platform where buyers and sellers can meet up. So Global Sources can’t make the product, but there is most likely a supplier on the platform that can help. When you say “I need something cohesive” I interpret that to mean that you need a physical prototype or perhaps a small test batch in hand that you can use for marketing.  I wrote an entire book (https://www.amazon.com/Essential-Reference-Guide-China-Sourcing-ebook/dp/B00ICE0KHY) on that very process but here are two important things to think hard about before you rush to have a supplier make a finished product:

1. Who owns the intellectual property?  The moment you start asking suppliers to help you design something, is the moment you may loose control of your own idea and that supplier quickly becomes your competitor!  Luckily it’s fairly easy to register IP and/or set up NNN agreements with potential vendors.
2. Know your pricing and nail down your QC before you start taking orders for your customers.  If you mess up the first order, it will be hard to get those customers back. So spend time on a small test order and/or prototypes and make sure you have all your costs from production to logistics to project management nailed down tight in advance of taking any orders.

Based on your question, I think you would be an ideal candidate to benefit from taking 15 minutes to watch this tutorial I put together:

If you are interested, reach out to me via https://www.asiabridgelaw.com/resources/  and I’ll hook you up with the free access codes to watch this tutorial.

Question: Can I import LED bulbs from China to India? What are the processes? Can I import without a BIS certificate – if yes, then what is the process for it? 

MB: China is a major producer and exporter of LED bulbs. I assume many of them go to India. But as you would be the importer of record in India, rather than the Chinese seller, it is up to you to confirm if you need the BIS cert and what other standards are applicable in your particular market. Do not take the seller’s word for it, as the local laws in India can change on short notice.  Consult a customs broker in your home market.

Question: I have purchased some goods from a supplier on your web site. They have communicated with me through message center on https://message.globalsources.com and then they started to communicate directly over email, the order was changed to more items, additional payment was requested, which I have not paid. The shipping company with tracking was provided  – https://www.expertlogserves.com with the tracking number. That shipping company does not feel legit since I could not find out anything about it. My question how should proceed forward with this supplier to review goods? They are listed as ‘verified supplier’ on your site.

MB: “Verified Supplier” means that they passed a certain set of standards at a specific time.  But particularly in this post-Covid mess of a supply chain, good suppliers can “go bad” overnight.  So it’s up to the buyer to do their own due diligence on the supplier as well as other key parties such as quality auditors and logistics providers.   Don’t forget your contracts and structure the payments so you are not exposed.  Here are some tutorials I made about how to do that exactly:   https://www.asiabridgelaw.com/resources/

Ask the Experts is curated by Mike Bellamy

Originally from upstate New York, Mike moved to Asia in 1993. Mike studied Chinese in Harbin & Beijing in the 1990s and spent over 20 years living and working in Japan, China and Thailand.

At AsiaBridge Law, Mike serves as the Senior China Business Advisor to both Fortune 500 companies and small businesses. Recognized as an expert on China sourcing, he has been interviewed by the Wall Street Journal, CNBC, Financial Times & Bloomberg. Mike is also the author of The Essential Reference Guide to China Sourcing.

Every month, our panel of sourcing experts will be getting together to answer the toughest sourcing questions you send in. Visit our Ask the Experts page to submit your questions for Mike and the panel. The most challenging and most vital questions will be covered in a subsequent edition of Ask the Experts.