It is super frustrating that it’s basically impossible to find good tech (in some categories). How is the author surprised about this though? Surely they knew about white-label alibaba tech, right? It is almost impossible to avoid it. It’s been this way for at least 5 years. I can pick a ‘white-label’ product by sight now. I suggest everyone develops the same intuition and avoids these disappointments.
I am doing these Type-C hubs, and other small stuff peripherals for a living.
My suggestion, don't look stuff retail, and don't look big brands, even Dell.
Pretty much any "brand business" had zero RnD. Their only feedback channel is the RMA rate. If it gets too bad, they just change the supplier.
Instead, I really suggest going the other way. Smaller makers have no money for big marketing, nor buying ready designs, so they hire people, and let them work until they make something sellable.
House brands often have better QC, because they are already very constrained by their pricing, and RMA will kill them. Thus, they have incentive to spend few extra thousand dollars in engineer work hours than to deal with $100k in returns themselves.
Can you please suggest some examples for brand business, and small makers? I'd like to compare them for contrast bit I don't know where to start. Particularly I don't seem to be able to distinguish rebranded whitelabels and actual small makers.
But the white-label stuff is so popular because it’s a ready-made product. Benefits (compared to DIY) include:
+ No RnD costs (staff and space, failed designs, prototyping)
+ No plant and equipment required
+ Smaller number of units required initially (no other outlays, so the number you have to sell is smaller)
+ Smaller time between investment and return
Negatives:
+ No innovation in the product
+ No control over manufacturing (quality, methods & materials used)
+ Higher risk of returns from customers (can’t control quality)
+ Higher risk of hurting or killing customers (product malfunction)
+ Loss of reputation due to the above three points (well deserved)
+ Inability to update design based on feedback
+ No control over price. You are at the mercy of your people in China after you’re established.
+ more. It’s a shitty practice if I’m brutally honest.
My point is: those upsides are appealing to both big and small players. No big upfront costs? I can just whack a label on a shiny piece of shit and make 2x ROI? Sweet! Reputation? Couldn’t care less, I’m small-time and can switch up if anything hits the fan.
What is an example house brand? Amazon? I understand your reasoning and it makes sense, but I'm not sure what brands that actually means, or how to find them.
