My View on Shanzhai Phenomenon
When new models of cell phones with a brand nameare desirable for many customers who can notafford them,smart business men began to producethe latest models through imitation but charge onlyone third or half of the price of the real model. Thiskind of cell phones, or labeled Shanzhai phones,undoubtedly, satisfies customers’ desire and rewardsproducers’ talents. Gradually, people label any commodities produced byimitation as Shanzhaiproducts.
Those products include cell phones, digital cameras, laptop computers etc. Some companieseven invite people who have similar appearance to popular stars to endorse on theirproducts in Shanzhai advertisements. Though those who produce Shanzhai products can reapimmediate profits, their products will gradually be eliminated from the market.
Firstly, indicative of the Shanzhai phenomenon is producers’ myopia. When a new model ofcertain product is in large demand, those speculative factory owners will seize theopportunity to manufacture similar products. Without investment in product research andadvertisements, what Shanzhai producers need to do is copy and then reap immediate profits.Obviously, as those companies do not lay their emphasis on product research and marketing,they do not have the chance to reap profits in the long run. For those speculators, whatmatters is whether they can make money as soon and much as possible. When a new modelbecomes outdatedand customers show less interest, inevitably, odds are against thoseShanzhai companies.
Secondly, as part of Shanzhai products would be exported to overseas markets, its low qualitywill do damage to the reputation of “Made in China”. In the market, Shanzhai products areusually charged less than the real ones. But why would those salespeople like to sell theirproducts at such a low price? Any rational customers can hence conclude that their quality isnot guaranteed. In the long run, foreign customers would realize that products made in Chinaare cheap and of low-quality. The moment they encounter products made in China whenshopping, they would pause for a second and then decide to choose products made in othercountries. This is not an exaggeration. In Russia, due to the import of fake Chinese productsin 1990s, Russian people have lost trust in Chinese products.
In sum, though those speculative producers can make short-term profits, customers willgradually lose confidence in Shanzhai products, which is to the detriment of reputation of“Made in China”. As a result, Shanzhai phenomenon should be discouraged.