June 17, 2015 by ...
China is known for quality fade. Quality fade is when your Chinese supplier does everything possible to ensure that your first order is perfect. They know that to you this means that they are capable of maintaining that level of service, and perhaps they are. But even if they can produce at that level, they frequently do not.
Once you are hooked like a Flint crack head, they begin to cut corners. For you it starts out as mildly irritating, until they substitute poison for milk powder and children die. Then you’re left explaining how your ISO certified partner managed to send customers to their graves.
Of course this is a dramatic example, but proves my point. After all. In the book Poorly Made in China, Paul Midler says that PRC firms produce shampoo with no active ingredient. It’s only suds and perfume.
Leo Jun and Xiaomi are doing something similar. At each turn they pull a fast one. In Singapore they allegedly sold user data to retailers and those users then harassed with sales calls. They then supposedly built sloppy and data of over 5milion users was stolen. Of course they deny this.
Now Lei Jun is harping about shipping phones sans power cords. He says they already have one so why bother? If they don’t then they can pony up and buy one from Xiaomi.
Of course this may sound minor but it’s an indicator of things to come. Xiaomi invents little and as a consequence of this they cannot charge premium prices. They can either buy quality components and live off peanuts or cut cost via quality fade. From the looks of it, quality fade is their choice.