Hey everybody, it’s December 6th, 2023. In this issue of Product EVO’s 5X5, we cover we cover worries about China, Biden and Xi, how to not lose money on your next product launch, emerging trends in building materials, and asking better questions.
Enjoy :)
TL;DR
China Worries: With the volatility in China, is it time to source a factory somewhere else?
Biden and Xi:Both leaders want to prevent conflict, but China likely remains a complex partner for the foreseeable future.
Don’t Lose Money: Don't fall prey to over-engineering a product no one wants. Validate pain and desire first.
Emerging Trends: “Mass timber” is a great example of new solutions in the sustainable building materials industry.
Ask Better Questions: Life punishes the vague wish and rewards the specific ask.
X1 - TIME TO GET OUT OF CHINA?
Amid the volatility between the US and China's so many founders and product managers I talk to feel like they have to manufacture their products somewhere else. But, they are frustrated with the reality of finding cost-effective manufacturing alternatives.
It helps if you have a few things to make the transition successfully.
First, you need to understand the pros and cons of manufacturing in other regions like the US, Mexico, Vietnam, and India. Global trends, cultural nuances, and legal differences in each country impact the speed of responses, MOQs, product quality, and cost structure. Figure this out to begin to narrow your search.
Next, consider a pivot in your brand strategy. This may include making some significant changes to your business. For example, you might have to eliminate some product lines you can’t manufacture easily outside of China. You should tell the story of why you are moving to the region you chose and build that into your marketing.
Finally, change your expectations. China does better than any other region at offering low MOQs, free engineering work, and as-needed manufacturing. These can be major factors for startups and bootstrapped companies.
Remember, it's not just about immediate costs. Thinking about this can create a stronger brand and more stable supply chain, but it doesn’t happen overnight. Think long-term!
Need help with this? Reach out! We love helping clients source factories outside of China.
The summit between Biden and Xi revealed ongoing political tensions that affect where you manufacture your products. Biden emphasized that the “United States and China are in competition." Not exactly warm fuzzy partnership vibes. He also "reaffirmed the U.S. ironclad commitment to defending our Indo-Pacific allies," signaling continued contention in that region critical for supply chains.
However, there was some progress. The countries are resuming military communication and talks on issues like advanced AI systems, which could reduce the risks of miscalculations.
On trade, Biden "raised continued concerns about China's unfair trade policies" and "punitive actions against U.S. firms" but said the U.S. will "prevent advanced technologies from being used to undermine our national security, without unduly limiting trade and investment." So some cautious optimism there.
The leaders "stressed the importance of responsibly managing competitive aspects of the relationship" and "preventing conflict." But political tensions persist. Weigh manufacturing location decisions carefully. Consider diversifying suppliers across SE Asia. The summit reveals China likely remains a complex partner for the foreseeable future. See the full brief on Whitehouse.gov
X3 - GOT A MINDBLOWING PRODUCT IDEA? DO THIS BEFORE YOU BET THE FARM
"Talk to potential customers" early. Don't just ask "do you have this problem?" Also dig into how much they'd pay to solve it.
Create a "fake door" landing page advertising your (non-existent) product. Drive traffic to it. See if people try to buy. Quantify demand.
Offer paid pre-orders for the product. Put your money where your mouth is on the solution. See if customers do the same on the problem side.
Release an ultra-lean MVP version first instead of a fancy v1.0. Let customer behavior inform evolution.
Don't fall prey to over-engineering something no one wants. Validate pain and desire first. Transfer risk from your gut to the market as soon as possible. Iterate based on what potential customers do, not just say.
Need help with this? Product EVO specializes in validating pain and desire for new potential products. Reply to this email to learn more.
Did you know that new building construction contributes up to 11% of all global greenhouse gas emissions?
Well, proponents of innovative new construction materials – such as wood scraps glued together in a new composite called ‘mass timber’ – are aiming to change that equation. Not only is mass timber more fire-retardant and less carbon-intensive than concrete and steel, but research shows that bringing in principles of ‘biophilic’ design (using elements in nature in architecture to promote a sense of calm, focus, and productivity in humans) can greatly contribute to the overall health and well-being of those who use those built spaces.
The older I get, the more time I spend—as a percentage of each day—on crafting better questions. In my experience, going from 1x to 10x, from 10x to 100x, and from 100x to (when Lady Luck really smiles) 1000x returns in various areas has been a product of better questions. John Dewey’s dictum that “a problem well put is half-solved” applies.
Life punishes the vague wish and rewards the specific ask. After all, conscious thinking is largely asking and answering questions in your own head.
If you want confusion and heartache, ask vague questions. If you want uncommon clarity and results, ask uncommonly clear questions.
Fortunately, this is a skill you can develop. No book can give you all of the answers, but this book can train you to ask better questions. Milan Kundera, author of The Unbearable Lightness of Being, has said that “The stupidity of people comes from having an answer for everything. The wisdom of the novel comes from having a question for everything.”
Substitute “master learner” for “novel,” and you have my philosophy of life.
Often, all that stands between you and what you want is a better set of questions.
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