Outsourcing and counterfeiting

We have blogged before about fake products being manufactured and sold.  The BBC website has a good article about this, which focuses on the threat from unscrupulous Chinese operators.  Typically they have a contract to manufacture a product and hence access to all the key information about how the product is designed and made.  Using this information, fraudulent manufacturers can either over produce the original and sell it directly to the market for a higher margin – or worse, manufacture a cheaper look-a-like, fake product and sell this – making even higher margins.  The article goes on to explore some of the security measures put in place by outsourcing companies in order to prevent this malpractice.

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This entry was posted in Chap 04 Location and design, Sector: Manufacturing and tagged , , . Bookmark the permalink.

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