Tuesday, November 28, 2006

Chinese Preemptive Counterfeiters Force Producers To Synchronous Market Introductions

Alex Zaharov-Reutt wrot a very interesting article for ITWire (H/T to Technology writer Mike Elgan of Raw Feed) about Chinese counterfeiters' preempting the market, before the originals are released in the Chinese market that will trick Chinese buyers into believing the original gadgets are fake.

Zaharov-Reutt links to two articles that give examples of these not so cheap, high quality counterfeit products: LG Electronics' Chocolate Phone and Sony's PlayStation Portable, Read the article in the English Chosun Ilbo here.

In an effort to neutralise the Chinese counterfeiters Samsung even offered the designers a job. The English Chosun Ilbo wrote:
"Samsung Electronics smoked out one such organization recently by tracking down the distribution channel on its own and offered their designers a job with the company. The organization had been able to decode circuit diagrams Samsung made. But the designers turned down the offer, saying they can make W100-200 million (US$1=W930) every time they succeed in producing a perfect fake, so there was no incentive to work for Samsung. "Due to the surge in imitation products, we keep new product design and functions highly confidential before release even within the company,” a Samsung executive said. "

So I think, for companies to avoid that these high quality counterfeiters preempt the market, it is key for them to introduce their products in their home market at the same moment as they enter the Chinese market.

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