Counterfeit in China
China’s Counterfeit industry and its global effects
Introduction
As global most competitive manufacturing hub, China attracts many global companies set up production bases. However, accompanying with the increasing development of China’s manufacturing industry, more and more fake products made in China rushed into market which concerns almost all industries, the most affected industries among which are electronics, garment, handbags, cosmetics, toys, and shoes which are closely related to consumer’s daily life. Those fake products not only cause huge economic loss to the corresponding companies, but lead to serious consequences to consumers, and eventually heavily hurt the reputation of “Made in China” and the whole manufacturing industry. In the past few years, though Chinese government and some related companies took actions mutually to prevent counterfeit products from flooding market, the bad global effects cannot simply disappear in a couple of years.
The current counterfeiting situation in China
Geographical spread of counterfeit products
China’s counterfeit products are mainly concentrated in South of China for example, factories in Guangdong Province occupy the majority of fake products manufacturing.
Causes
There are a lot processing plants of international brands in Guangdong due to cheaper labor force and preferential policies. Therefore it’s much easier for counterfeiters to obtain the big brands’ design and even production process. In addition, there weren’t very strict regulations to restrict counterfeits ‘production.
Classification of counterfeits * Complete Counterfeits: these fake products look totally same as the real one, no matter the package, the trademarks, accessories or the styles. * Look-alikes: These are made as a similar way as the real products. They may be different in details, but the color, trademark and setup are so similar that may confuse consumers. * Products which misuse trademarks: those use similar
Introduction
As global most competitive manufacturing hub, China attracts many global companies set up production bases. However, accompanying with the increasing development of China’s manufacturing industry, more and more fake products made in China rushed into market which concerns almost all industries, the most affected industries among which are electronics, garment, handbags, cosmetics, toys, and shoes which are closely related to consumer’s daily life. Those fake products not only cause huge economic loss to the corresponding companies, but lead to serious consequences to consumers, and eventually heavily hurt the reputation of “Made in China” and the whole manufacturing industry. In the past few years, though Chinese government and some related companies took actions mutually to prevent counterfeit products from flooding market, the bad global effects cannot simply disappear in a couple of years.
The current counterfeiting situation in China
Geographical spread of counterfeit products
China’s counterfeit products are mainly concentrated in South of China for example, factories in Guangdong Province occupy the majority of fake products manufacturing.
Causes
There are a lot processing plants of international brands in Guangdong due to cheaper labor force and preferential policies. Therefore it’s much easier for counterfeiters to obtain the big brands’ design and even production process. In addition, there weren’t very strict regulations to restrict counterfeits ‘production.
Classification of counterfeits * Complete Counterfeits: these fake products look totally same as the real one, no matter the package, the trademarks, accessories or the styles. * Look-alikes: These are made as a similar way as the real products. They may be different in details, but the color, trademark and setup are so similar that may confuse consumers. * Products which misuse trademarks: those use similar
References: Douglas Clark, L. (n.d.). Fighting Counterfeiting in Asia. Retrieved 04 14, 2013, from Jurisdiction: http://www.jurisdiction.com/lovells.pdf Lutz, A. (2012, 11 20). China 's Counterfeit Market was busted. Retrieved 04 14, 2013, from Business Insider: http://www.businessinsider.com/chinas-counterfeit-market-was-busted-2012-11 Organisation for Economic Co-operation and Development. (1998). The Economic Impact of Counterfeiting. Paris: Head of Publication Service.