1. Macau University of Science & Technology, Avenida Wai Long, Macau;2. University of Victoria, PO Box 1700 STN CSC, Victoria V8W2Y2, Canada;3. Stockton University, Galloway, NJ 08205, U.S.A.;4. Vienna University of Business & Economics, Welthandelsplatz 1, Bldg. D2, 1020 Wien, Austria;5. Founder, ACIP Group, Vancouver V6 K 2G8, Canada
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.
