Is Imitation Flattery or Fraud?
Do these Chinese brands sound like any names you know? A car dubbed Hongda? A retail store called Wumart? A Redberry wireless e-mail device? Some non-Chinese companies think so. And they are not happy with what appear to be attempts to capitalize on their good names.
The imitation of well known brands is probably not really an effort to defraud. Many Chinese companies are just beginning to venture into the international market, and they are not used to the branding competition there. With little effort or originality, they simply choose names they hope will allow consumers to recognize the type of product or service they offer.
So a Chinese automobile manufacturer produces a car that looks like a Land Rover and calls it “Roewe.” Another car maker builds a vehicle very similar to the Chevy Spark and names it “Chery.” The Chinese Internet company Baidu.com features BaiduSpace and Baidupedia. A coffee retailer uses the name “Xingbake,” which is “Starbucks” in Chinese.
Whether innocent marketing choices or deliberate attempts to cash in on someone else’s success, these names are angering the companies they imitate. Those companies are expressing that anger in complaints and lawsuits.
As Chinese firms expand their international business, they will need to learn how that market works. Consumers, especially Western consumers, want brands they know and trust. To sell to them, Chinese companies will need to develop and promote their own brands. They will need the sophistication, expertise, and experience of brand-consulting services.
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Posted: November 9th, 2006 under Danger, Companies, China.
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