Tactics
Divide the world into first and second tier. The first tier has strict copyright laws, the second don’t care. The First want low prices, the Second are willing to pay higher.
Take orders from the First at cost, learn the process, copy. Overproduce and sell the Second for double or triple the profit. The First becomes a much smaller percentage of the business, so that you can now raise the price to approach the Second.
The First brings to you products and design to copy, as well as reputation that you can use to impress the Second. Once you have worked long enough for the First they need you more than you need them. Squeeze for higher prices. Display the designs so that others can see what you can produce.
Quote low to start the First, then substitute to increase margins. Control the process until caught. When caught plead that the change is small. If the First wishes to improve the change the price increases.
Build the business. Expand the factory. Have it evaluated at double the cost to build, take the difference and invest elsewhere.
Results
The World gets overall better design, though not better quality. The First get initially lower prices but only if they have unique designs. In time prices will increase.
Designs will flow around the world faster, to the Second. They are willing to pay more than First.
Design in the home country is not necessary and not encouraged.
Relationship with the First starts great and then degrades, until you need not the First. Prices increase or new designs arrive. Quality will never increase and stabilize as you are constantly looking to substitute. Years mean no guarantee of relationship or quality. Volume to reduce price is irrelevant as raw material prices are set, irregardless of volume purchased.
Paul Midler, Poorly made in China.