I don't mean to split hairs but your comments here can be kind of confusing.
A $10 US knife does not cost $60 US in China, it costs 60 Yuan, correct?
If so the $10 knockoff of a $60 Native here in the states would be 60 Yuan for SRM vs 360 Yuan for Spyderco in China using the same rate of exchange. While those two scenarios represent the same difference percentage wise, it actually looks worse for you in China than here. Especially considering the SRM would naturally cost less than 60 Yaun there, and yours would cost more than 360 Yuan since the burden of exporting would shift to you.
That being said Sal, I wish you could put them out of business for their obvious theft of Spyderco designs, I really do. You don't have to justify your products in the face of these knock-offs at all. I own 5 of your knives and I carry one almost every day (Caly 3), and even if I could get a copy for $20 I would not be interested in it as I don't believe that even without comparable labor, R&D, insurance and other costs that anyone could build, package, and sell a comparable product for 1/5 of the cost of yours.
My biggest concern is that the Chinese manufacturers will start sourcing identical materials to the established USA manufacturers, and combine that with the much lower actual cost of manufacturing, and their obvious ability to manufacture to pretty tight tolerances to put some real stress on our domestics. Not at 1/5 the price, but maybe 1/2 the price. Do you see that as being a possibility over the next decade or so?
Hi FLymon,
Sorry to cause confusion. Let's say you are a factory worker in a modern Chinese city. You will pay one half to one hour of labor for an inexpensive knife. You will pay 4 hours of labor for a good knife and 6 or more hours of labor for an afi knife. Same as here. The Chinese buy cell phones, cameas and cars for about the same rate of hourly work as we do.
When it goes across the border, there is a conversion. Now the cost changes at about 5 or 6 to one. It's been fluctuating lately and will not likely weaken, but at this time, we can build something in China for about 20% of the cost that you can build in the USA given equal quality in materials and labor.
That's how emerging markets "push" their way into the "Big market".
That's why there are so many products made in China these days and you can a TV for $50. (Of course, there's a downside, but that's another topic).
As far as copies, there were many examples of copies shown on this thread, but they are not all made by SRM. Stopping them is more challenging. Since many are putting our name and logo on the piece, customers think they're getting a real Spyderco. This will make them think poorly of our quality. They also send them to us for repair and are often "heated" when we tell them it's a copy.
The topic is about SRM, and while there ae many copies out thee, I don't know for sure that SanRenMu is making them?
Your "biggest concern" is a real concern. That's why there is so much "discussion" going on worldwide about the value of the Yuan against world currency. In the meanwhile, many are enjoying the value at the current conversion rate. The downside (always + and -) is that manufacturing trends to China. In the future, the Yuan will raise in value and the balance will continue. I understand that Viet Nam will be the next "value" country.
I see a larger problem that doesn't involve the exchange. The Chinese are such capable producers that I believe they are capable of producing more than the world is capable of consuming. Then what?
sal
