- 10 percent said they are increasing quality control spending by more than 20 percent;
- 26 percent indicated spending will increase by 10 to 20 percent; and,
- 26 percent of respondents said they'll increase spending by up to 10 percent.
The survey, which was conducted over a one-week period beginning September 10, covered suppliers in 11 provinces across China, with 53 percent of respondents coming from Guangdong province, where the recalled products were manufactured. Global Sources initiated the survey to see how suppliers are addressing product quality issues since the story broke.
Global Sources' Chairman and CEO, Merle A. Hinrichs, said: "While overall responsibility for product quality rests with the importer, who is legally responsible for ensuring that his products meet the standards of the country where it is being sold, mainland China suppliers, as this survey shows, are investing heavily to help their buyers meet these requirements."
The majority of spending on quality control is directed toward implementing total quality management procedures in factories, with more than 70 percent of suppliers saying it's the best way to improve overall quality.
The survey also shows:
- 20 percent of suppliers feel working closely with quality-focused buyers leads to overall product quality improvement
- 63 percent of mainland China suppliers say most quality issues are addressed by working with buyers well before production begins, during the design and sampling stages
- 34 percent of respondents said quality issues are actually addressed during production line inspection either by the buyer, inspection agency, or factory quality control staff
Vice President & General Manager of Circuit City in China, Jeric Ma, said: "We fully understand that the safety of the products we sell is vital and we work closely with all our suppliers in China and elsewhere to ensure they meet the appropriate regulatory approval standards.
"This is to the mutual benefit of the consumers, the suppliers and, naturally, to our company and our brand.
"We invest heavily in quality control and quality assurance processes and are confident that the suppliers we choose to work with make high-quality products that are safe as we responsible to our customers."
Even with the recent news coverage on product recalls, 66 percent of survey respondents still expect that their export sales to increase over the next 12 months.
Suppliers surveyed for the report come mainly from consumer product manufacturing industries across China, including electronics (27%), home products (12%), telecommunications products (11%), and hardware and do-it-yourself products (8%).
