The Sales Strategist's Blog

Tuesday, August 7, 2007

Was Lead Paint China's Only Choice for Fisher Price?

The Chinese Manufacturer that was contracted by Fisher Price to manufacturer its product had no choice but to take short cuts and use product processes that were eliminated in the United States in the mid to late 70's.

Chinese manufacturers understand economics and also understand how to make money. As a result, they have no choice but to cut corners and work around specific quality systems such as ISO or TS. That's exactly why Made in the USA means something. Lead paint was just the most recent in a line of corners that Chinese Manufacturers are cutting to make sure that they are, above all else, profitable. With their decision to outsource to China, driven by their own need to remain profitable, Fisher Price put one of the most recognized brands in toys at terminal risk.

It's likely that very few people will ever know the name of the Chinese Manufacturer that was responsible for the lead paint on toys and yet the name and brand of Fisher Price will bear the responsibility, accountability and damage for their decision. China had no choice but to use lead paint. When you manufacture goods at 40% to 60% the cost of domestic manufacturers and you're paying workers pennies on the dollar, it's likely that quality systems and processes aren't the top priority of your manufacturing operation.

Labels: , , , , ,

Monday, July 23, 2007

China as Top Innovator is Off the Mark

In the Monday, July 23, 2007 edition of the USA Today (Money Section) a sidebar said the following: "One in four Americans think China will beat the United States in the next decade as the world leader in innovation, according to a survey released Sunday by Zogby International. Seventy percent said the government is not doing enough, and nearly two-thirds of the 8,046 respondents said American business isn't promoting innovation enough, either."

China's degree and depth of TRUE innovation is suspect. Let's not forget the numerous manufacturing snafus (from toothpaste to tires) that China has experienced in recent months. What China is is a leader in pirating and patent infringement. China should be recognized less for their manufacturing innovation and more for their repeated bastardizing and commoditizing of American Innovation and markets.

While certain markets and manufacturers may have grown stale, TRUE innovation and ingenuity are alive and well in companies throughout the United States. As we move forward in manufacturing, it's important that American companies direct their sales emphasis less on the low cost provision of Chinese Sourcing and more on the TRUE innovation and value that American companies provide.

Labels: ,