How do high SKU Chinese Carbon Manufacturers work?

[dumbmachine]

Sorry for the off topic thread. I will delete the post, or post it another section, if it isn't valid here.

How do super cheap carbon manufacturers like RXL, work and survive? They have high SKU, low price( and quality too sometimes ) while selling very niche products which don't seem to have a scale where do would be making big cash. Are the companies like a public RnD section of bigger workshops?

Even some of the better brands, Toseek, selling ~1000 bars ( rough estimate from sold numbers on ali search for road handlebars ) doesn't seem like it might be enough. Across multiple product lines it might be 5-10x that order. Is taobao where the real selling happens, where the real numbers are visible and thus aliexpress numbers seem low.

Or Is this just a function of competition in xiamen carbon scene and factories just work with lower margins?

( I could be that I'm missing on how big their internal china market might be, if anyone has any reading material for this; please share  )

[Tijoe]

I don't believe that Chinese companies operate the same way western companies do.   As I understand it, many Chinese manufacturing companies really don't "own" their manufacturing facilities. Larger holding companies, that have all of the equipment and resources often make a small companies products.   They pool resources with other parallel/compatible products.  Carbon bike parts could be made in the same facilities as carbon fishing poles, or other recreation parts.   I understand that they often get funding from the government to develop their products.  If they require more tooling /molds like frames and rims, there are a pool of "experts" that help them create what is needed to manufacture their part.   They don't operate under a cutthroat open system where competition rules and the big companies chew up the small or purchase them if they become a threat.  They help each other out for the good of all.   (But there is a lot of pressure for them to be successful in their field of business.)

It has been a few years since I read up on how their manufacturing businesses work. You have to shift your perspective in that a "small/medium business operator" there don't have to make "big cash" to stay in business.  As long as they contribute to China's success, they are considered a value to their system.  They still have to earn enough to feed their family and make sure their employees do well too.

[amacal1]

I've never heard it explained like this, and I guess that makes some sense. I always thought when you saw the same product branded 5 different ways and sold by 5 different companies that there was really some single company that made the one item and 5 different companies slapped a logo on it and sold it. But then it got confusing to see some company sell a slight variation or improvement on that one product only under a single brand and then maybe see a different company sell a slightly different version. Confusing!

I guess it makes sense if there really are 5 different companies pooling resources and acting almost like 1 company, and then they each might make a different version or maybe not.