China is putting a competitive squeeze on some of its partners that still use the mainland as a source of low-cost design and manufacturing. Good Will Instrument, a 700-person test and measurement company in Taiwan, is just one of the companies feeling the pinch.
Good Will recorded 2010 revenues of $55 million selling spectrum analyzers, signal generators and other gear as much as 20 percent cheaper than big U.S. rivals such as Agilent and Tektronix.
Now, a growing crowd of China copy cats are going directly to Good Will's global distributors with products that undercut the Taiwan company's prices by as much as 50 percent.
More than 20 China T&M companies now compete with Good Will, up from about six a few years ago. They often copy Good Will and U.S. products slavishly, right down to the look-and-feel of the cases.
"The biggest problem with the China-made products is quality," says Helena Wang, a manager of overseas sales for Good Will. "Some use used LCDs or other components, and the systems are not always well calibrated so they can give inaccurate results," she explains.
But the Chinese companies--under names such as Regal, A10 and Unichem--are getting government backing. The money enables them to send large contingents to big European electronics shows to gain market attention, Wang says.
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I do not see why anyone is surprised that the Chinese are not playing by the rules. For centuries the western nations exploited the Chinese to build thier empires. Now China is just following their example to rebuild their country after its recent exploitation and make it an Asian, if not a World power.
So if you think China is your friend, think again. If you provide them with any intellectual property, they will copy it. If you do not secure your IP, they will find a way to take it any way they can.
Why? Because they can and no one wants to confront or provoke them because they still think China is an open market. It is not! You either play on China's terms or you get out.
Controling the copying fully is not possible. That is the reason big companies like Agilent,Tek continually improve thier product spec and its features. Those who ever update their products will be able to hold their market share. Some of the competeitve china products seems to perform equally good with long term stability.
It is really good that Chnia brings down the cost T and M Instruments. However, it is totally unetical to copy IP. China can and should design their own products from basic specifications. This may not be very expensive for company who can capture good part of world market.
If a product can be re-engineered by just copy and assemble, I strong doubt there are a lot of valuable IP involved. In order to compete, a new company always introduces a similar product with a lower price. Yet, in order to sustain its own business, the company has to continue to improve the product. If it can't stay ahead of the game, it's going to be seen as 2nd tier and will never be able to compete effective with an innovative company.
Still i think chinese have to put in their own
RnD efforts.we have checked equipment from various makers from china.Only rigol seems to
be quality product,may be bcz it is backed by
China.Goodwill of taiwan is really undisputed
Price /quality leader to date.And judging their
active RnD and increasing product portfolio
,they will remain Industry leader.
R&D is still important in T&M field and I believe price is not the only factor that keeps a company in good shape. People who is still innovative can still be the leader, of course margins may be thinner than before but it should still be high and attractive for players.
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