It doesn't matter who makes what. If you put your logo on it, people will think you make it, and that's what matters in terms of reputation.
This is true, but if you look at the big picture, the companies that make the most monies within our industry are the ones making knives in the "lower" quality range. For some reason, I don't think they're losing too much sleep over their industry reputation.
Do you think Kershaw owns the factory in China?
We own many factories in China.
Point 1: The given possibilities to solve the problem at hand have not been fully explored, and there remain conventional solutions to the low sales of some existing products. These techniques are low risk and should be attempted before moving production to China because we have good reason to believe that the price is not the reason it's not selling well, given that similar or more expensive priced alternatives, from roughly equally respected brands, that are inferior in design, materials and appearance, are still selling well and are seemingly quite profitable. Therefore, perhaps the existing product can go unchanged and these other solutions can be attempted.
This point is rather interesting, as maybe we should look at different ways to present the product so to put more of a spotlight on a specific pattern. Good idea.
Point 2: Chinese knife production undermines the average consumer's confidence in the product. The rate of sales should increase, given the 50% reduction in price, compensating and then some for the reduced appeal of the knife. But ultimately, moving production to China, for this knife and inevitably many others, quite possibly all others (over the course of 5-10 years), will lower Kershaw's standing in the minds of consumers, ultimately leading to less willingness to spend the money on high end models.
Kind of a stretch here IMO.
Heck, even a recent Knives Made in China poll here on BF's, (you know the place where all the "knife guys" hang out), had shockingly positive things to say about knives produced in China. I believe it's being more accepted everyday, even within our community.
As far as moving everything to China, I guess it is possible over the next decade, but as of today, our focus with the line, is a Made in the USA.
You have to understand though that there are limitations here, and the factory works to capacity every month. To not make any knives other than here would be, well seriously stupid.
This isn't necessarily bad, if Kershaw decides to step down a notch to compete with Gerber, CRKT, Buck and the like overall, but while that can be a very good company, it's not really a company that interests me. I'm active in the market Kershaw currently occupies. I'm not sure it's the market Kershaw wants to occupy anyway.
We want it all on a stake AM, but we're content at where we are today, which is one of the industry leaders in high end products, and a pusher when it comes to value based volume moving, Made in the USA knives.
There will probably be a time, within the next ten years, where Chinese production is perceived to be like Japanese, i.e., comparable to US quality. And then we can pursue that possibility--but, of course, as Chinese products become more desirable, it'll probably cost more to manufacture there, making Chinese production less financially advantageous than it is today.
For now, we can get most of the price drop advantage that the Chinese would bring using conventional methods and less expensive materials, while increasing consumer visibility of the models in question.
This sounds like a subject for another thread.
...but when the smoke clears, we're going to have the big three with only one remaining that never tarnished its image with wide scale production in places with less-than-reputable quality. And I'm betting that the last man standing with its reputation fully intact can demand, and receive, more money for a given knife than its competitor can.
AM, we've always produced knives overseas, this is not new business for us.
As I have mentioned, Kershaw Knives, Kai USA is not a specialty manufacturer like Spyderco and Benchmade. We cater to the masses, and do not fully concentrate on $100+ pocket cutlery. It is not our desire to do so. Although we do use and have brought the latest greatest steels to the market, and have advanced the industry in terms of technology (MIM, Composite Blades), it more just supplement business for us.
Let's not get confused of our identity, focus, and plan. I've pretty much laid it out over the last few years. To date it is working well: Volume manufacturing with a real emphasis on USA production, and high end as our supplemental business.
To finish up on topic, I really don't feel a RAM II made overseas is gonna change too much, and still feel it is what is best for the pattern.
So here it is, laid bare. We're not doing politics here. And we're not doing ethics either. This is business. This is money.
If anyone tells you it's not about the money...well you know.
Though if we're talking about actually moving US tooling to China, that is something else. I doubt that's the case, though.
