Chinese Consumers Are More Inclined To Buy Genuine Clothing.
While foreign companies and the US government are pressing China to solve the problem of counterfeit goods, consumers like Liu Wenzhong have shown that the demand for real goods in the country is becoming stronger and stronger.
Recently, Liu Wenzhong bought a pair of snow boots and fleece hoodies in a North Face sports equipment store in the most popular business district in Beijing. He spends about 700 yuan on each item, or about 110 dollars, which is about five times the price of the imitation on the street.
Liu Wenzhong said that the difference between buying genuine goods and fake goods is the feeling after buying. Liu Wenzhong, 36, runs an optical fiber technology sales company with a steady income of 15000 yuan a month. He said he was proud to wear genuine brand names.
Although the copycat versions of brand-name products are still available in most parts of China, it can be seen from Liu Wenzhong's remarks that the shopping mentality of Chinese consumers who have been keen on buying goods from a non legal channel is changing.
Because Chinese consumers are more inclined to buy genuine products, Nike is also willing to invite big sports stars like James.
A survey conducted by China Market Research Group last year found that 95% of Chinese women aged 28 to 35 felt embarrassed to have a fake brand handbag. Demand for fake brands also declined, according to a survey by McKinsey&Co., a consultancy. In 2010, only 15% of consumers were willing to buy counterfeit clothing or leather goods, which was lower than 31% in 2008.
This change has contributed to the expansion of foreign companies in China. Retail brands such as Nike (Nike Inc.), Columbia Sportswear Co., cosmetics brand Shiseido (Shiseido Co.), and the parent company of North Face (VF Corp.) have opened stores in more remote cities in China. Many retailers attract shoppers to shop through special activities such as in store activities. Some brands have taken measures such as special packaging to distinguish genuine goods from fake ones.
OMeara, President of Aidan O, said that Chinese consumers are more powerful than consumers in the west, and they do not want to be caught in the use of fakes.
In the first few years of the late 1990s and 2000, North Face's products were in flood. Now, the brand has about 500 stores in China and continues to expand. Wei Fu Group plans to add 450 new North Face stores in China in the next three years.
However, counterfeit goods are still a big problem China needs to face. According to China's General Administration of quality supervision, inspection and quarantine, the total value of counterfeit goods fined by the Chinese government last year amounted to 5 billion 330 million yuan (US $847 million). According to US government data, China is still the largest source of counterfeit and pirated products seized in the United States. About 62% of the counterfeit goods valued at US $124 million 700 thousand last year came from China.
Over the past few years, Tod s SpA has established a network of more than 30 stores in Italy, which is a high-end shoe manufacturer in Italy. However, a spokesman for the company said that counterfeit shoes of poor quality were still found in the underground market, and the company is currently working on a strategy to combat counterfeiting.
In addition, with the growing popularity of golf in China, U.S.Golf Manufacturers Anti-Counterfeiting Working Group, the US Golf manufacturer, has been increasing its anti fake efforts in China. In last year's two anti counterfeiting operations, more than 7000 counterfeit clubs and a large number of counterfeit clothing were seized. Jason Rocker, a spokesman for the group, said that anyone who wants to buy fake products will be produced by Rock. Its members include Callaway Golf Co. and other golf players manufacturers.
President Obama said in his state of the Union address last month that the US government will step up efforts to prevent counterfeit products from entering the United States. He mentioned China in particular.
China has been making efforts to crack down on counterfeiting. In 2010, China launched a large-scale action against intellectual property infringement, mainly targeting software, auto parts, mobile phones and food in the southeastern coastal provinces. Columbia said that the Chinese authorities seized 2000 counterfeits of the company's products at the end of the year, with a total price of about 2 million 700 thousand dollars.
A number of garment companies said that a change in consumer attitudes was a reason for their increased investment in China. Nike said last month that the company plans to build a park in Shanghai to expand its business and increase sales to $4 billion by 2015. Nike achieved over $2 billion in revenue last year in Greater China, including Mainland China, Taiwan and Hongkong.
Nike spokesman Jeanne Huang said consumers want to buy authentic products, and they want to get real experience when they shop in stores. Nike China store has run events and has carried out video discussions with world-renowned athletes such as Chris Paul (Chris Paul). Paul plays for the Los Angeles Clippers (NBA) of the United States Professional Basketball League (Los). Consumers can also design shoes and clothing for themselves in the store.
20 years ago, Columbia began to make garments in China. This means that counterfeit raincoats and down garments can be bought in many places. China is now one of the biggest markets of the company as consumers change their attitude towards counterfeit goods and take repeated anti fake activities. In 2004, the company began selling products in China, and now its products are sold in more than 600 Chinese shopping malls and exclusive stores.
William Tung, Columbia's vice president of Latin America and Asia Pacific, said the company is determined to maintain its position as one of the largest outdoor sports brands in China. He said people have realized that there is a difference between the quality of genuine and counterfeit goods. They are disappointed with the feather down clothes that often come out of feathers.
For some companies, as the online retailing industry has started in China, the Internet has become a new source of worrying counterfeit goods.
William Tung said that its products had about 100 thousand counterfeits sold on the Internet every day. Columbia employs software companies to help them detect such products list, so that the company can send a lawyer's letter.
Shiseido began selling a cosmetics series across the Internet in China last year. Its product packaging is very special, so that it can easily distinguish genuine products from fake products and unauthorized products.
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