Natural Alexandrite Cut Stone,Faceted Gemstone Alexandrite,Loose Alexandrite Stone for Jewelry Making Guangzhou Qinfa Crafts Company , https://www.qinfastone.com
Not long after the new product hit the market, Mr. Wang, responsible for market supervision, discovered during a routine inspection that someone had begun copying the company's innovative product designs. Upon reporting this to the company, General Manager Liu remained calm and chuckled, saying, “Let them copy it. Imitation is a form of flattery. Besides, it shows that we have something valuable to offer!†This sparked an interesting question: What should a company do when faced with product imitation? How should one approach this situation?
Menghu offers a great case study. Known for its healthcare products, Menghu began operations in 2004, initially focusing on marketing and planning. Over the years, it evolved into a comprehensive agency offering marketing strategies, sales representation, and real estate planning. By 2004, they had successfully marketed over ten products nationwide, including the Bright White Nano Magnetic Toothbrush, electric underwear, Thai Hudi, CTKSB Life Light Energy Comb, and Volcanic Element Energy Slimming Earrings. Throughout this journey, they’ve encountered countless instances of imitation, counterfeiting, and knock-offs. However, instead of panicking, Menghu stayed focused on its core mission, improving its offerings and maintaining its edge.
One notable incident occurred in 2006 when a company in Shaanxi released a nano-toothbrush shortly after Menghu's product launch. Their promotional materials were nearly identical to Menghu’s. Staff members were furious and wanted to confront the imitators, but Menghu’s leadership remained unfazed. They reasoned that such imitators rarely sustain themselves in the long term and are often short-lived. Sure enough, within a few months, the Shaanxi company folded, losing over 30,000 yuan in the process.
In 2008, Menghu introduced the CTKSB Life Light Energy Comb. Within three months, a counterfeit version surfaced, mimicking both the product name and packaging. Despite this, Menghu chose to ignore it. Months later, the counterfeit product flopped in Lanzhou, selling only nine units and resulting in losses exceeding 20,000 yuan. While some might have been frustrated, Menghu saw this as proof that staying true to their vision outweighs immediate setbacks.
Fast forward to April 2009 when Menghu launched the domestic Volcanic Element Energy Slimming Earrings. Thanks to their extensive distribution network, the earrings quickly gained traction across major pharmacies nationwide. Within weeks, sales skyrocketed, with demand consistently high. Just two months later, a competitor emerged with a similar product. After investigating, it became clear that the competitor’s earrings were poorly made, yet they too claimed to be slimming. Observations revealed negligible sales and little consumer interest.
Despite this, Menghu didn’t divert resources to address the counterfeit issue. Instead, they doubled down on enhancing their product’s appeal and addressing its shortcomings. But what should a company do when faced with product imitation?
Firstly, embrace competition as part of the game. In a free-market economy, competition is inevitable. Without it, there would be no growth. Consider the rivalry between air conditioners and freezers—when rivals promote their products aggressively, it often benefits the entire sector. Similarly, despite various brands promoting their wares, consumers still gravitate toward established leaders like Haier. The key lies in reinforcing your brand image and ensuring consistent quality. Don't let imitators shake your confidence—stay ahead by focusing on your strengths.
Secondly, view imitation as an opportunity to innovate. One renowned company's mantra reflects this mindset: "Always being imitated, always surpassing." If your product attracts imitators, it signifies success. Keep pushing boundaries, stay ahead of trends, and maintain your edge. Remember, imitators lack creativity and rarely grow beyond their initial hype. Focus on continuous improvement, staying ahead of the curve, and setting industry standards.
Thirdly, recognize that jealousy reflects inferiority. A successful entrepreneur once shared, "Jealousy is a sign that someone sees you as a threat." Think of billionaires like Li Ka-shing or Wang Shi—they inspire admiration precisely because they’ve achieved greatness. Those who envy you are often those who feel overshadowed. Let their negativity roll off your back—it’s a testament to your achievements.
Fourthly, the more imitated you are, the more recognized you become. As one entrepreneur put it, "Imitation is a compliment." Early on, when a new product gains traction, it naturally draws attention and imitation. This scrutiny strengthens your brand identity and increases visibility. By the end of the year, such companies often emerge as industry leaders, leaving competitors struggling to survive. Remember, imitators rarely succeed—they merely highlight your success.
Fifthly, embrace imitation as a path to maturity. The Menghu team exemplifies resilience. Unlike many agencies, they practice what they preach—doing hands-on marketing for others while representing their products. Their commitment to innovation has led to 95% of their products being unique. When others focused on traditional remedies, Menghu ventured into nano-toothbrushes. When competitors dabbled in weight-loss stickers, they introduced slimming earrings. Such bold moves solidified their position.
When faced with imitation, Menghu didn’t panic. Instead, they transformed challenges into opportunities for growth. Thus, imitation has been a catalyst for their evolution.
Lastly, adopt a differentiated strategy. Market research suggests that "first" trumps "better." Opening a new product category in consumers' minds is far easier than convincing them you’re superior to existing innovators. Renowned strategist Michael Porter outlines three competitive strategies: cost leadership, differentiation, and specialization. Blue Ocean Strategy takes this further—winning isn’t just about defeating rivals but creating entirely new markets.
While innovation carries risks, launching a new product category can yield immense rewards. Avoid entering markets requiring heavy education or support. Enter quickly and dominate consumer consciousness. If competitors or counterfeiters confuse the market, consumers may abandon the entire category. Innovation opens untapped opportunities, reducing direct competition.
Creating a new category avoids saturation. If you pioneer a product type, your brand becomes synonymous with authenticity. Competitors entering later will always be viewed as imitators. White Plus Black’s day-night cold medicine pioneered a segmented pill category. Chengde Lulu dominates its niche. Master Kong established itself as the dominant instant noodle brand in mainland China.
Category innovation is foundational. If you aren’t at the top of a product type, create a new one. Countless examples show that a new category is where a brand’s legacy begins. Discovering a new category is worth more than millions in ad spend.
China’s market offers countless opportunities. Whoever claims a category first reaps greater rewards. So, when faced with imitation, don’t panic. Leverage resources strategically—you’ll remain the leader.