Knockoff mobile phones such as Apple (hi-phone), Nokia (Nckia), Samsung (Sumsang), that sometimes explode or have high radiation, are immensely popular in China, 20 percent of this biggest market in the world! The phones are also exported to Russia, India, Middle East, Europe and US. David Barboza wrote an article about it: 'In China, Knockoff Cellphones Are a Hit' for the NYT, read here.
Mr Barboza explains why it is easy to produce a knockoff mobile phone in China for about 20 US dollar:
Since 2005 came Mediatek, a Taiwanese semiconductor design company with a turnkey solution that can be used as a platform to produce low cost mobile phones;
Since 2007 no license is needed to manufacture a cellphone;
If you are a manufacturer of these so called Shan Zhai Ji (Mountain Bandit Machines), you are not going to pay value-added tax of 17 percent of the revenues;
Tapping in the supply chains is not difficult, because there are manufacturers that cannot resist a request to run a night shift.
New Chinese brands emerge, such as Meizu, that aspire to emulate Apple. More information about Shan Zhai Ji, read here.
Sky Canaves and Juliet Ye of the Wall Street Journal's China Journal Blog dealt with the top ten lists of Google.cn 2008. Although most Chinese use Baidu, and Google is used by some of the higher educated Chinese, the most searched terms can give an indication of what is hot and what is not in China. Read the China Journal article here.
In the category "Most asked questions": Number 1. , unsurprisingly, given the enormous impact on China's society, was: What is melamine?Interestingly also on number 8 another question had also to do with substandard, counterfeit products: What is Shan Zhai Ji?
Ok, everything that shows up in a Google top ten is a trend. But what does this trend mean? So what means Shan Zhai Ji 山寨机? This is literally: Mountain Bandit Machine, and is a a knickname for cell/mobile phones with copied design and functions of branded cell/mobile phones offered for a much lower price, without permission of the brand owners.
According to Candy Yang and Lisa Li of China Youthology, which is "catching the pulse of Chinese youth", Shan Zhai Ji has developed into a subculture which can be defined as:
Enjoying technology for a low price;
Satisfaction with the level of technology and innovation of small bandit factories, which meets Chinese youth need to experience new technology and new functions and some humour;
Pride for unpretentious, low quality low price products.
Shan Zhai Ji might look vulgar and ‘out-dated’, but are considered cool and interesting by some youth.
Ms Yang and Ms Li did an informal survey about who is buying these Shan Zhai Ji products. The outcome is: creative youth, technology geeks and guys. In marketing terms the important group of early adopters. In other words: the opposite of brand chasing as the title of the article rightly put is, read the China Youthology article here. Conclusion: counterfeit trademarks and pirated copyright in China is not only caused by supply but also by demand. Brand holders need to work on both sides.
An example of a Shan Zhai Ji, you can see below a video of the iOrange, oops iOrgane. It has some extra functions compared to those of the iPhone.
Knockoff mobile phones such as Apple (hi-phone), Nokia (Nckia), Samsung (Sumsang), that sometimes explode or have high radiation, are immensely popular in China, 20 percent of this biggest market in the world! The phones are also exported to Russia, India, Middle East, Europe and US. David Barboza wrote an article about it: 'In China, Knockoff Cellphones Are a Hit' for the NYT, read here.