ShanZhai-Crossing the Line from Copying to Innovation 山寨——跨越抄袭与创新间的界限

Shan Zhai (http://en.wikipedia.org/wiki/Shanzhai) is a very unique cultural and widespread phenomenon in China, especially in the consumer electronics market. Shan Zhai refers to Chinese knockoffs and no-name brands and goods.  People are impressed to see the Shan Zhai iphone before they can find the real iphone on the market.  Shan zhai products from mobile phones to cars and net books to shampoo are also easily found.

Examining the market segmentation in China reveals that the international brand dominates the market in 1st tier cities. However, in  rural area and non-1st tier cities, for example, Tian Yu is the top 10 mobile phone seller in China, ranking just after Lenovo in the latest Baidu Mobile Phone Market Survey 2009. At one time, Shan Zhai net books accounted for 20% of the netbook market.

Some Shan Zhai mobile phones are made of “Chinese” materials such as bamboo in their industrial design, setting the trend for other major brands to follow.  The market success of Shan Zhai products is due to their fast-to-market response, strong local distribution network, flexibility, low cost and localization of product, and ultimately, their risk-taking.
 
So, is it fair to say that Shan Zhai is purely a copycat? The Shan Zhai phenomenon is not about low-cost, imitation products anymore.  Rather, a successful Shan Zhai company is one that has a competitive advantage due its innovative approaches and ability to break through traditional wisdom. After their first success from copying, a successful Shan Zhai company will establish their own brand.  
 
frog design and CCPIT Shenzhen Sub-Council will co-host a panel discussion during the 2009 IODFCN design event.

Date: September 18, 2009
Time: 14:30-15:30
Venue: Shenzhen Convention & Exhibition Center Hall No.2

Confirmed speakers:
Michael Young, Industrial Designer
Brandon Edwards, Associate Creative Director, frog design Shanghai office
Charles Ng, Principle Brand Consultant, Maxi Communications Ltd
Alan Yip, Director, Yip Design Ltd

Moderator:
Prof. Hui Ming Dong, Dean of College of Design , Guangzhou Academy of Fine Arts
 
Topic for discussion
-         What are the key characteristics of Shan Zhai Companies?
-         What are the innovative approaches Shan Zhai Companies adopt to break through the market ?
-         Why Shan Zhai products dominate the low end market? What are their successes ?
-         What kind of “Shan Zhai” Companies will emerge as disruptors with sustainable business while  the majority will fade away? how long will shan zhai companies not only survive but grow in the Chinese market, and what will they do to maintain long-term health?
-         What are the lessons to be learned for companies that compete with “Shan Zhai” businesses, especially those from MNC or other large local corporations?

--Chloe Ng, Program Manager, Shanghai Office

在中国，山寨正成为一个普遍的现象，它也成为了消费电子市场的一个人们话题。人们惊讶的发现，在真正的iPhone登陆市场前，他们就已经能找到山寨的iPhone了。我们可以很容易的在手机，上网本， 笔记本电脑，汽车，洗发水，鞋类等市场中找到山寨产品。

关注中国的细分市场可以发现，国际品牌主导了一线城市市场，而农村地区和非一线城市被本土品牌和山寨产品所占据。举例来说，天语就是一家关注三线和四线城市的、国内第一的手机公司。他们超过了像诺基亚这样的跨国手机制造商。而山寨的上网本则一度占领了市场20%的份额。山寨产品由于其灵活性，低成本，对市场的反应快，敢于冒险以及对产品进行本土化设计在市场上取得了成功。

我们能说山寨产品只是仿冒产品吗？山寨现象已经不再是低成本的仿冒品了，而是关于中国公司如何抛弃习惯性思维并通过创新来建立起竞争优势以获得成功。

青蛙设计与中国国际贸易促进委员会深圳分会将在2009创意设计博览会期间联合举办专家小组讨论。

日期：2009年9月18日
时间：14：30——15：30
地点：深圳会展中心2号馆

演讲嘉宾：
Michael Young,工业设计师
Brandon Edwards,青蛙设计上海办公室创意副总监
吴秋全，MCL品牌顾问有限公司首席品牌顾问
叶智荣，Yip Design Ltd董事

主持人：
童慧明教授，广州美术学院设计学院院长

讨论题目：
- 山寨企业的主要特征有哪些？
- 山寨企业用了哪一些创新手段来突破市场？
- 为什么山寨产品能主导低端市场？他们获得了那些成功？
- 在大多数山寨企业昙花一现的情况下，哪种类型的山寨企业能够打破现有市场并维持自己的商业运作？
- 与山寨进行竞争的企业，尤其是那些跨国企业或本土的大企业应该从中学到什么？

--伍翠群，项目经理，上海办公室