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Integrating consumers’ motives with suppliers’ solutions to combat Shanzhai: A phenomenon beyond counterfeit

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  • Qin, Yao
  • Shi, Linda Hui
  • Song, Lei
  • Stöttinger, Barbara
  • Tan, Kang (Frank)

Abstract

Imitation goods are widely spread throughout the global business world. Shanzhai imitation (▪) represents a type of imitation that mimics the original brand through surface or functional similarities but often provides enhanced or innovative features adapted to local market needs. Although both practitioners and academics have studied and provided solutions to combat counterfeits, solutions for original brand manufacturers to address threats from Shanzhai products are lacking. In this article, we first differentiate Shanzhai products from counterfeits. Using a mixed-method approach that combines interviews and laboratory experiment results, we then identify social, individual, functional, and financial (SIFF) factors as driving forces behind consumers’ purchasing of Shanzhai products. Shanzhai buyers place more weight on functional value and price/quality ratio than do counterfeit buyers, who in turn favor social value and materialism more than Shanzhai buyers. Finally, we provide several recommendations to original manufacturers from both the demand and supply sides.

Suggested Citation

  • Qin, Yao & Shi, Linda Hui & Song, Lei & Stöttinger, Barbara & Tan, Kang (Frank), 2018. "Integrating consumers’ motives with suppliers’ solutions to combat Shanzhai: A phenomenon beyond counterfeit," Business Horizons, Elsevier, vol. 61(2), pages 229-237.
    • Handle: RePEc:eee:bushor:v:61:y:2018:i:2:p:229-237
    DOI: 10.1016/j.bushor.2017.11.009
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    References listed on IDEAS

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    1. Xu, Xiaoping & Choi, Tsan-Ming, 2021. "Supply chain operations with online platforms under the cap-and-trade regulation: Impacts of using blockchain technology," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    2. Liangyan Wang & Brian Wu & Cornelia Pechmann & Yitong Wang, 2023. "The performance effects of creative imitation on original products: Evidence from lab and field experiments," Strategic Management Journal, Wiley Blackwell, vol. 44(1), pages 171-196, January.

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