Angie found that her Chinese manufacturers offered very good prices compared to those she was quoted by American producers. In fact, her China experience gave her confidence that she could keep her prices fairly low in the U.S. market and still make a good margin that would help her meet her profit goals. Her “masstige” product strategy seemed feasible.

However, she had not yet sailed into calm waters. Manufacturing overseas exposed YOYO Lip Gloss to a new set of issues, such as communication and quality. Instead of dealing directly with China, Angie could have opted for a broker or a full-service U.S. outsourcing firm to assist her with product manufacturing. Many companies decide to use outsourcing firms to minimize their issues in dealing with Chinese organizations, but Angie never thought about using a broker. Yet, in dealing with her Chinese manufacturers, she understands why many companies decide to hire a broker or an outsourcing firm for assistance.

Communicating directly with Chinese manufacturers can be a task in itself. There are considerations of cultural, language, and time differences. Angie found out firsthand just how difficult it can be to deal directly with a company overseas. She learned it is imperative to understand every aspect of the company with which you are dealing. It is not as simple as picking a firm and hoping for the best. Chinese manufacturers are making Angie’s product from scratch. They are not modifying an existing product. Angie needed to be involved in every aspect of the manufacturing process to ensure that her product was being made with the high quality she demands.

Learning about manufacturing techniques presented quite a challenge. Since she had no experience in manufacturing products like her reel or her lip gloss container, Angie was not aware of the mold-making process or what materials were needed to mold her product. Working closely with her manufacturers in China, she now understands the process of making a mold and is quite knowledgeable about 2-Ethylhexyl Palmitate, a skin conditioning agent used in cosmetic formulations. Angie found it necessary to stay in constant communication with her manufacturers because she discovered the conception of quality can be quite different in China. She needed to be assured that her manufacturers were abiding by U.S. laws and meeting the stringent demands of U.S. consumers.

For example, Angie ran into a quality issue with the tube for her lip gloss. When she received her first samples, she noticed that the lip gloss tube was not top quality. Her manufacturers in China used a low gauge plastic, which made the lip gloss tube feel thin and look cheap. Angie did not want to pass these impressions onto her customers. She contacted the manufacturers and new samples were made with better quality plastic.

Angie also ran into quality issues with her reel. The original samples included a clip that was not sturdy enough for its intended use. And because Angie’s idea required durability (so that the product can be worn while engaging in the strenuous activities of her characters, like dancing and skateboarding) Angie knew that she could not approve the sample. Additionally, the yoyo retraction was not working as she had intended. This required her to go back to her manufacturers as well. These quality issues ultimately delayed the manufacturing and release of her first batch of products.

After the manufacturers fixed the retractable reel and the lip gloss tube, Angie thought production could finally get underway. Unfortunately, she ran into another hurdle. She noticed that her sample lip glosses were unstable. That is, the original taste of the formulation changed over time. Angie contacted her manufacturer to discuss her finding. She was informed that the lip gloss needed to set for one month. Angie very well could have continued with production, but she decided against that. She wanted to make sure the lip gloss flavor and texture retained its quality after the one month period. This further delayed Angie’s release of her first production batch. This delay is part of Angie’s learning curve. She was not aware that the lip gloss would change over time and that it required time to set. Had Angie known, she would have taken this time into consideration when planning her production process.

Angie was also especially concerned with her lip gloss formula due to the strict FDA guidelines. She did not want to release a product to the market that was in violation of these rules. This presented another significant challenge. The names of ingredients in English and Chinese are different. She had to constantly monitor the ingredients of her lip gloss, making sure her manufacturer in China was following the formula developed by her U.S. chemist.

Even though Angie encountered many hurdles in her production process, she was fortunate to have manufacturers who understood the importance of communication. Some communication barriers did exist because of the global environment, but both Angie and her manufacturers worked to minimize them and stay in constant communication. Angie would email her manufacturers at night and by the next morning she had her answers. Angie and the manufacturers worked to keep the lines of communication open and both remained focused on the goal, to make YOYO Lip Gloss a success. In summary, Angie explains:

Hiring a broker to conduct my business in China may have been less hassle than directly working with my manufacturers. However, since I completed the tasks myself, I now understand every aspect of my business. No one cares more about YOYO Lip Gloss than I do; I know that all tasks have been performed to my standards and all safety and quality precautions have been implemented.

I have full control over my entire business and manufacturing processes; I do not have to depend on a broker to make my next move because I am aware of each production step and have close relationships with my suppliers.

Manufacturing in China has kept YOYO Lip Gloss’s costs low. Thus, I will be able to pass these savings onto the consumer, retailer, and salespersons so that all can benefit from this product. In addition, low manufacturing costs will enable YOYO Lip Gloss to fulfill a company goal – to establish the YOYO Foundation, which will use a portion of the profits to assist children in need, in the U.S., as well as abroad.

As I look back, the only thing I would want to change is the knowledge that I have gained through this journey. I have learned so much. But that is part of the thrill - learning, growing, and changing. I enjoy figuring out how to complete new tasks and making old tasks easier to perform. If I had the knowledge I now have, it would have made life easier and the process much faster, but it is all part of the learning experience – it’s part of life.

Now that Angie’s idea has taken form and YOYO Lip Gloss is in production, how will she get her product into the hands of her target market?