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Not long after the new product hit the market, Mr. Wang, who was responsible for market supervision, discovered someone imitating the company's latest offerings during one of his routine inspections. He promptly informed the company, but General Manager Liu just chuckled and dismissed the issue, saying, “Let them copy it. They might mimic our style, but they can't replicate our charm! This is just another example of a small player trying to mimic a bigger one. But tell me, what should a company do when faced with imitation after launching a new product? How should we handle such situations?â€
One good case study comes from a local brand called Menghu. It’s estimated that 85% of healthcare product marketers and agencies began their journey in 2004 with marketing planning and related products. Over the years, this agency evolved into a comprehensive marketing firm specializing in planning, sales, and real estate. Since 2004, more than ten of Menghu's products, including the Bright White Nano Magnetic Toothbrush, electric underwear, Thai Hudi, CTKSB Life Light Energy Comb, and Volcanic Element Energy Slimming Earrings, have been sold nationwide. During this period, they’ve faced plenty of imitation, counterfeiting, and follow-ups, but Menghu didn’t pay much attention. Instead, they stayed focused and kept moving forward step by step. Menghu believed that competition is inevitable in any market, and a potentially lucrative market is something everyone would naturally covet. Imitators are like mosquitoes—they may nibble at profits, but they won’t last long.
I remember back in 2006, when the Bright White Nano Diluted Toothbrush launched, a company in Shaanxi also released a nano-toothbrush and embarked on a nationwide promotion. Their promotional materials were virtually identical to Menghu's. Naturally, the sales team was furious, eager to confront the competition head-on. However, I advised them not to worry too much about it, as imitators rarely achieve significant success. Sure enough, within a few months, the market showed no signs of growth, and the company reportedly lost over 30,000 yuan.
In 2008, Menghu introduced the CTKSB Life Light Energy Comb. Three months after its release, a counterfeit version emerged, almost identical in product name and packaging, even mimicking the advertisement as the "CTKSB Life Light Wave Energy Comb." Despite this, Menghu paid no attention. By the time the counterfeit reached Lanzhou, they had only sold nine units and lost more than 20,000 yuan. We found this amusing—how could the boss be so laid-back?
In April 2009, Menghu launched the domestic Volcanic Element Energy Slimming Earrings. With their extensive distribution network, the product quickly made its way to pharmacies in major cities across the country. Within a week of launch, the sales figures were impressive, averaging around 300 boxes daily. The production staff worked overtime to keep up with demand. Two months after the launch, a friend informed us of another slimming Earring on the market. We dispatched someone to investigate and found it to be an ordinary craft earring labeled as a slimming product. Its advertisements copied Menghu's design, yet it garnered little attention, with almost no sales.
We didn’t bother addressing this imitation product. Instead, we continued focusing on improving our product quality and boosting sales. So, how should a company respond when its new product is imitated?
First, anticipate competition. In a market economy, competition is essential for growth. A heated market attracts consumer attention, much like how the freezer and air conditioner wars drove sales. Even when rivals advertise heavily, established brands like Haier continue to dominate and remain consumer favorites. The key lies in maintaining your position and subtly influencing consumer perceptions. Don’t panic when competitors imitate or follow your products—just stay ahead and focus on doing your own thing better.
Second, embrace constant innovation. One well-known company’s motto reflects this philosophy: “Always being imitated, always surpassing.†Their own products are frequently copied, but they persistently innovate, staying ahead of the curve. This company inspires admiration because imitation and following trends are unavoidable in a market economy. Focus on product development and market leadership. No matter how others imitate or follow, true leaders will always stay ahead.
Third, recognize that jealousy indicates inferiority. A successful boss once told me that those who envy you are usually not as capable. Consider figures like Li Ka-shing, Shi Yuzhu, and Wang Shi—none of them are easily surpassed. Envy stems from insecurity, so don’t let it affect you. Learn to detach yourself from criticism and focus on your goals.
Fourth, the more you’re imitated, the more famous you become. A successful entrepreneur once remarked that in the early stages of entrepreneurship, new products attract immediate attention from competitors. Imitation and following trends boost your reputation and increase brand awareness. Through continuous innovation and effort, companies like this have risen to the top five in their industries, while most followers have failed. Remember, imitators are often left behind.
Fifth, embrace imitation as a path to maturity. The Menghu team is renowned in the marketing and planning industry. Unlike other agencies, they combine practical experience with theoretical planning. Most of their products are unique and innovative. While others stuck to traditional medications, Menghu introduced a nano-diluted toothbrush that became a hit. When others focused on weight-loss stickers and clothing, Menghu launched slimming earrings that became a national sensation.
When faced with imitation, Menghu remained calm and used it as motivation to innovate further. This approach allowed them to grow steadily and mature.
Sixth, adopt a differentiated strategy. Market research shows that being first is better than being better. Establishing a new product category in consumers’ minds is easier than convincing them you offer superior products. Competitive strategy expert Michael Porter highlighted three winning strategies: “Cost Leadership,†“Differentiation,†and “Focus.†The “Blue Ocean Strategy†takes this further—winning isn’t just about defeating competitors but creating entirely new markets.
Even risky ventures can pay off if you create a new category and pioneer innovation. For instance, Coca-Cola’s formula is easy to replicate, yet it dominates the cola market due to its brand perception. Master Kong established itself as the leading instant noodle brand in mainland China, making it difficult for competitors to surpass it.
Creating a new category avoids intense competition. If you’re the first in a product category, you’ll likely become the leading brand. Competitors joining later will only reinforce your presence.
In conclusion, don’t panic when faced with imitation. Instead, use it as an opportunity to innovate and strengthen your brand. Strategic resource integration ensures continued leadership. Opportunities abound in the Chinese market—seize them wisely and you’ll reap greater rewards.