TechBurner Fiasco: What It Reveals About the State of Manufacturing iN India

Date: 13 Dec 2024

For startups, agility is survival. Rapid prototyping, experimentation, and iterative design are essential, but these are exactly where the Indian manufacturing ecosystem struggles, especially when compared to the highly adaptive and startup-friendly ecosystem in China. As someone overseeing the sourcing for DreamSleep, I’ve experienced firsthand how these challenges can hinder progress and make it difficult to experiment and innovate effectively. China has long been the go-to destination, and for good reason. Their ecosystem is built for rapid prototyping and iteration, with vendors willing to work with you even on "half-baked" ideas.

Lessons from the Tech Burner Smartwatch

The recent Tech Burner smartwatch controversy highlights this issue. While initially touted as "Made in India," the watch turned out to be sourced from China. This isn't surprising, given the challenges of electronics manufacturing in India, especially for startups. Even creating your own PCBs can be difficult, with complex designs often requiring Chinese manufacturers. Importing components adds another layer of complexity, with numerous certifications and clearances needed.

Why China Excels for Startups

China's manufacturing ecosystem is a powerhouse of efficiency and adaptability. Vendors there are not only professional and prompt but are also eager to collaborate, even with minimal information or small order quantities. Platforms like Alibaba play a pivotal role in this. They offer startups a gateway to a vast network of manufacturers who treat even small companies professionally and respectfully.

For instance, when we needed specific tubes for our product, Indian vendors quoted INR 350 per meter. Even for a bulk order of 2,000 meters, the price reduced only marginally to INR 280 per meter, excluding GST. In contrast, Chinese vendors on Alibaba quoted INR 4 per meter for a small sample batch of 150 meters. Their willingness to accommodate small orders and experiment without exhaustive details is a game-changer for startups.

Challenges in Indian Manufacturing

In India, the manufacturing landscape is different. High minimum order quantities (MOQs) and the expectation of detailed specifications upfront make experimentation costly and challenging for startups.

The Indian manufacturing ecosystem needs to adapt to better support startups. Lower MOQs, greater flexibility, and a willingness to collaborate on prototyping are essential. Until then, startups must carefully weigh the pros and cons of each option, remembering that while speed is important, building a brand on transparency and authenticity is equally crucial.