China Going Global - From imitation to innovation. The Shanzhai story

London, 13 April 2023 | | 1

China Going GlobalFrom imitation to innovation

The story of Shanzhai

China Going Global

• How it started - Going global china conference

• What we learnt..

Chinese global brands

420 Million Netizens

• 70% are under 30 years old

• 70% engaged in social media

• 30% manage a social network profile

Current state of web design

What next?•E-commerce is on the rise

•Evolving social media platforms

•Blending of Chinese with mainstream western design

•Towards a more user-centered product

•Moving from a manufacturing to an innovation hub

Shanzhai

山寨

“Mountain Stronghold” :

Old mountain forts of regional bandits

In other words..

Illegal family run businesses that produce cheap imitation goods

iOrgane

•Avoid taxes, regulation and copyright

•Do not use branding as a marketing strategy

•Known for their flexibility of design to meet specific market needs

•Meet a product demand (250 million mobiles sold/year)

The Shanzhai business

•Cheap – sell for a 10th of the original price

•Similar aesthetic value as original (mobiles have become status symbols in China)

•Multifunctional design adapted to local market needs (dual SIM capability)

•A fun parody of mainstream culture?

Why are people buying Shanzhai?

Rolex A699 Mobile phone

Sophone4

Shanzhai Culture山寨

Cars

Shoes

Fast Food

Olympics

Architecture

Architecture

Steve Jobs

Search engines

Panda dog

Shanzhai innovation

山寨

•Low margins and vicious competition force companies to innovate

•Lighter and faster development

•Insights into user needs (razor phone)

•Success stories like Tianyu a now licensed and popular a shanzhaiji maker

What is causing it?

Obama BlockBerry

Bird Nest

Big Cannon Paparatzo

SPEC•6X ZOOM•1.3 megapixel•3-inch touch-screen•Double SIM slots,• Additional MicroSD•Bluetooth, •MP3 player

•Money authentication reader able to distinguish real banknotes from fakes.

Golden Buddha PhoneComes with a certificate to prove it has been blessed by monks.

Cool 758 Razorphonedesigned for on-the-go hygiene

Converse 2 in 1

Food for thought

•Are they being cheated?

•Are they getting more bang for their buck?

•Is the copycat culture stifling creativity?

What do consumers think?

•Are they being cheated?

•Promoting their brand or devaluing it?

•Are Shanzhai companies pushing the boundaries?

What do businesses think?

Lessons from Japan & Korea

•Imitation as origin of global brands

•By enhancing experience, functionality and quality built successful global brands

•SONY, LG, Samsung

Is imitation a bad thing?

Is imitation a bad thing?

•Can you say you haven’t imitated?

What about patterns?

You are a Shanzhai company based in

London

山寨

Shanzhai company exercise

•Choose a product to imitate

•Replicate it as well as you can

•Change/Enhance/Add functionality

•Present back to the group

Shanzhai company exercise

•Why did you choose the product?

•What makes it different from the original one?

•Would you buy it, why?

谢谢 !