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    Copycat Brand "Bump Shirt" Refraction Market Management Malpractice

    2012/3/20 12:08:00 31

    Cottage Footwear Market

    For many years, true and false " Electrolux Finally, the court decided that Electrolux from Europe (Electrolux) won the Qingdao Electrolux Limited (Elekes) and its authorized producers and distributors. Qingdao Electrolux Limited has been renamed and compensated for 280 thousand yuan.


    Although the true and false "Electrolux" case has settled down, the case is not the first case of "Shanzhai enterprise" in China, nor is it the last one. Shanzhai Electrolux is actually a microcosm of many Chinese enterprises. The controversy about "Shanzhai enterprises" is not over yet.


    The cause of Shanzhai phenomenon


    The quality of Electrolux's products reported in the media is verified and verified. The product is actually produced and sold by Electrolux Electric Co., Ltd. of Qingdao and its authorized manufacturers and distributors. It is marked as "Elekes" or "Ellacks", which is different from the trademark Electrolux of authentic Electrolux.


    In addition to the Chinese name, Electrolux Qingdao limited imitated Electrolux products completely in products, product packaging, product manuals and product functions, and in the actual sales, promotion and promotion process, it also claimed that it was "Electrolux" brand, which caused consumers to be misled.


    The word "Shanzhai" began in 2003 with the rapid imitation of brand-name products. The earliest "Shanzhai" has been widely spread in some unlicensed electronic factories and small workshops in Guangdong, involving mobile phones, digital products, game machines and other different product areas. This product looks like brand name products, powerful, but the price is low, known as Shanzhai machine. Local people call these factories built by plagiarism and produce inferior, fake and fake electronic products as "Shanzhai factories".


    As the "Shanzhai" wind blows, the "Shanzhai enterprises" mushroomed in China. There are more and more "Shanzhai products": "Shanzhai clothing", "Shanzhai floor", and even "Shanzhai car" and so on. So that "you Shanzhai" became a fashionable greeting.


    Zhang Jian, a brand management expert, said that the "cottage products" of Shanzhai enterprises were popular in China for many reasons.


    "In essence, it is due to economic reasons. Some small enterprises and processing factories in China are limited by the lack of funds for development and the conditions of scientific research. They can only follow the path of imitation and improvement. In view of this, as the forefront of China's reform and opening up, the southeast coastal area has many advantageous manufacturing advantages. Some "Shanzhai Wang" has a smart mind and management mind, and also knows the huge profits and broad market behind the cottage products. In view of the psychological characteristics of big brands with high prices and ordinary consumers, especially young people, who have difficulty in buying, they have the love of famous brands. Some imitate the banner of famous brand enterprises, "build another mountain", imitate and improve their low price products on the market. Zhang Jian said.


    "Specifically, a hot selling genuine brand product requires a lot of investment from enterprises, such as the cost of pre development, the promotion of advertising, the cost of taxes and the cost of after-sale support, so that the price of goods is high, especially for electronic products, which are often more than three thousand or even more expensive, and many consumers can hardly afford it." According to Zhang Jian analysis, on the contrary, copycat products imitate the originality of genuine products entirely or most of them, eliminating the cost of development, channel sales and after sale service, replacing the non mainstream sales channels such as private booth sales, and the prices are naturally low. While there is no obvious difference between the quality and function of the two kinds of products, the consumers, especially the middle and low end consumers, prefer the latter.


    In addition to the above reasons, Zhang Jian believes that because China is not as advanced as European and American countries, it has advanced management experience and sound legal system. Some enterprises do not pay enough attention to intellectual property protection. For example, many products are not protected by patent application. Once copycat products come out, safeguarding rights becomes a big problem. In addition, the relevant departments are not strong enough to supervise the market. Therefore, many factors make " Shanzhai enterprise "And" cottage products ", like wild weeds growing up in stone crevices, are full of wild mountains and plains.


       The pros and cons of Shanzhai


    The data show that the "cottage goods" produced by "Shanzhai enterprises" occupy an increasingly important position in the consumer goods market in China, especially in some two or three line cities and rural markets.


    In the birthplace of Jordan sports, China's sports shoes and clothing city, Jinjiang, Fujian, as well as "Kobe sports", "Yao Ming", "Yi Jianlian" and other brands, and these brands are also not related to these stars. This "free riding" brand strategy is popular in Jinjiang, and Jinjiang is only a prominent representative of China's huge "Shanzhai" business group.


    There is no consensus on the products produced by Shanzhai enterprises, whether they are industry experts or ordinary consumers. Is "Shanzhai" the embodiment of grassroots spirit or the "killer" of innovation? There is no final conclusion.


    Those who support "cottage" believe that foreign capital monopolize brand and technology, and impose great price on many electronic and technological products. Prices are far above value. This is the only way to create a "Shanzhai" phenomenon for the Shanzhai machine. If the brand machine and the "copycat machine" are the same price, who is willing to use "Shanzhai machine"? In fact, the appearance of Shanzhai products is a resistance to the profiteering of the industry. Cottage products quickly occupied a large number of markets and launched a favorable competition with mainstream brands. In the long run, it will inevitably lead to a decline in market prices, which is beneficial to improving the phenomenon of monopoly and profiteering.


    From the perspective of Shanzhai products, it also has positive significance. In fact, cottage behavior is the only way for economic transformation in many countries. Many big innovation powers start from imitation. Japan is the world's leading innovation power, but Japan also has a similar "Shanzhai" transition period in China. Since the 50s of last century, Japan has carried out a lot of dismantling the mechanical devices of American computers and other products, and carried out reverse engineering, so as to quickly learn and catch up with the advanced technology of the United States.


    Those who oppose the "Shanzhai" phenomenon believe that. The disadvantages of cottage products are numerous. On the one hand, under the strong impact of the products of Shanzhai enterprises, the mainstream brand manufacturers have to cut costs, shorten the R & D cycle and reduce R & D funds in order to cope with the fierce market competition. This will inevitably damage the independent innovation of scientific research, which is unfair to the regular Corps. On the other hand, although the "Shanzhai" product is not a fake, it is nothing more than an imitation. The so-called "innovation" is merely the design and function of the exterior. It is technically not innovative. It is essentially a fraud, and stealing other people's intellectual property rights is an offence and tort.


    Some commentaries say that the "cottage enterprises" believe in the doctrine of taking advantage of others, blindly opportunistic, long time playing other people's signs, swindling and deceive others by means of others' channels, and making no effort to do their own brand, are actually shortsighted performance, which has laid a great hidden danger for the future development of enterprises, which will cause great risks for enterprises to expand in the future. If "Shanzhai" is wantonly and rampant, the "Shanzhai" products will be overrun, which is no good for China's manufacturing industry, which urgently needs to be stronger and bigger. If the enterprise has the cost of imitation, it is better to develop a new brand independently.


    Liu Buchen said that the infringement should not be too merciful, and that kindness is not conducive to the long-term development of enterprises.


       The future of Shanzhai


    The responsible person of Shenzhen branch of Hewitt consulting limited said that the rapid development of cottage products is related to the demand of market oriented cottage. The more immature market, the more demand for cottage products.


    However, in the " Shanzhai enterprise At the same time, some "congenital problems" are coming. First of all, the weakness of "Shanzhai enterprises" is also the most important technical problem of products, which restricts the development of Shanzhai enterprises. Taking mobile phones as an example, smart phones and 3G phones are popular trends. However, the patents of smart phone operating systems and the patents of 3G mobile chips are in the hands of a few manufacturers. Shanzhai enterprises are not only unable to pay the high authorized use fees, but also make "Shanzhai enterprises" have to camp in ordinary mobile phones and other fields.


    In addition, with the continuous improvement of people's income level, the low-end consumer groups of original Shanzhai products began to focus on brand effect. This makes the "price performance" weapon of the Shanzhai enterprises without their own brands greatly reduced.


    Experts suggest that "Shanzhai products" are not completely pirated and plagiarized. As long as there is no obvious infringement, we should classify the "Shanzhai enterprises" and encourage the powerful "Shanzhai enterprises" to join the "regular army". The concept of intellectual property system is to protect originality and encourage creation. "Shanzhai enterprises" should respect others' intellectual property rights, strive to carry forward the spirit of innovation, take the road of independent research and development, create their own brands, and develop themselves. Managers should not crack down on Shanzhai behavior, properly guide and support China's "Shanzhai enterprises" to use intellectual property law system to successfully promote the development and transformation of Shanzhai industry.


    In recent years, more and more "Shanzhai enterprises" have embarked on the road of transformation. In the field of mobile phones, Tianyu represents a successful development process of domestic mobile phones. It is precisely because of the importance and persistence of R & D design that it has earned the hard power needed for transformation. The mobile phone with the reputation of "mobile Shanzhai Wang" has been at the forefront of the transformation team. It has not only established R & D centers, but also entered the 3G high-end mobile phone industry, and has been recognized by top companies such as Huaping, Qualcomm and Microsoft.


    After having experienced the initial stage of imitation, the "Shanzhai enterprises" must have the courage to break through in order to achieve long-term development, move towards a comprehensive and independent innovation road, and realize the magnificent turn, otherwise they will not escape the fate of being eliminated by the market.

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