The Hoverboard craze was so intense that new factories were popping up in China almost daily, offering manufacturing rates that weren’t truly competitive. These factories operated 24/7 yet STILL struggled to meet the soaring demand.

This rush for Hoverboards introduced significant risks. Small to medium-sized factories often function more as assembly plants, easily transitioning between different types of products. While this flexibility keeps costs low by increasing the number of producers, it also introduces risks. Products might not be competently produced or adhere to strict standards, unlike those from specialized, dedicated larger factories, which are typically safer and more reliable.

IMEX Advantage:

• Our presence on the ground in China, coupled with a team of skilled bilingual negotiators, allowed us to ensure collaboration with the best factory among the available options in the region.

Initially, Hoverboards sold rapidly, exceeding our expectations and keeping us in a constant rush to fulfill orders and collect revenue.

As time wore on, however, major issues began to crop up within the distribution stage.

The first big problem came when The United Kingdom completely banned the use of Hoverboards in public spaces – legislating that they could only be used on private property.

With the Hoverboard effectively being a “transportation” device, things looked grim… until sales paradoxically increased! Probably because of teenagers, who likely saw the product as edgier and cooler than before.

However, that was before reports of Hoverboards started exploding. And then exploding Hoverboards became a trending media phenomenon. Injuries were reported, kitchens were destroyed from the resulting fires, and soon enough, Hoverboards became synonymous with “fire” and “explosion.”

NONE of our products had exploded, as we had sourced the highest quality parts from known and vetted factories. But we would nonetheless soon be affected by the Hoverboard chaos.

The United Kingdom instituted strict compliance measures by placing Hoverboards under “Trading Standards” scanners, and random inspections were increased on all Hoverboard shipments. Soon after, we learned that one of IMEX’s shipments was among those being inspected.

We were confident in our product but a single issue was detected: the UK standard plugs were non-compliant with UK requirements. The manufacturer was unaware that these cheap, five-cent components were not compliant.

The takeaway is NOT that we had a poor product, as we had placed QC as our biggest priority. Ordinarily, this and other defects – such as fake batteries, non-compliant adapters, non-compliant plugs, irregular labeling, etc. would be ignored while bad products would leave the market owing to market economics.  The takeaway is that this could have happened to anyone! And, it turns out, was happening to not just anyone, but everyone. But for us, it was a problem.

Sadly, trading authorities decided to send a strong message – we were not allowed to replace the plug/fuse, or given the option to send the Hoverboards back to China. Instead, the whole shipment was to be made an example and was destroyed.

We mention this to encourage you to think of what was happening to other manufacturers – especially those without quality control-obsessed teams on the ground in China.

We went back to our factories in China and had the issue immediately addressed, and no further problems happened.

With these challenges behind us, the sales game was on for IMEX.

IMEX Advantage:

• Our Hoverboards never exploded, thanks to sourcing high-quality parts from vetted factories.
• IMEX swiftly responded to portside documentation demands.

The compliance challenges faced by Hoverboard vendors created a significant shakeout in the market, forcing out factories and vendors that didn’t prioritize compliance. Fortunately, our well-vetted and larger factory not only survived but thrived in this environment.

With the market cleared of competition, our client seized the opportunity to strengthen their brand. They were previously selling one 40-foot container per month, which has now increased to 3x40HC containers monthly. Translating to approximately $400,000 in purchases and $1.6 million in sales every month. Remarkably, the product’s evolution has led to a minimal 1.5% return rate, a stark improvement considering its previous reputation for safety issues.

IMEX Advantage:

• Our client has emerged as the largest Hoverboard seller in the UK and is currently in discussions with Amazon to supply their Hoverboards through Amazon’s Vendor Central program, further solidifying their market leadership and growth trajectory.