The way it works is a lot of these large [U.S.] brands have almost no engineers on the inside… office consists of some product managers and maybe a couple of product engineers. And what they do is they just write kind of a Word document that’s 10 pages long.
They ship it off to China to a factory. And the factory actually does all of the work of taking that sort of sketch and that Word document and turning it into a real product, right? And they’re really good at doing that. And they’re very fast. And they’re very efficient at it.
So the thing that sort of the Chinese lack is sort of like market vision. If you ever see a product made by a local Chinese entrepreneur, they’re often times these very nichey sort of almost quirky strange products. You get this kind of Chinglish thing going on where I could see where this could be useful, but it’s just not the right product. So what really is lacking and the reason why China’s sort of viewed as not innovative is they sort of lack the understanding of the American market. And I think they are a little heads down in terms of taking risks in terms of dramatic product design.
…But they actually do — like a surprisingly large amount of design for very little money.