A global perspective on combatingShanzhaiproducts: Cross‐cultural solutions

Abstract

AbstractTo compete on the world market, companies from emerging economies often adapt their innovations to satisfy unique cultural needs. They do so, in part, by copying the products of their western counterparts with a degree of modification. This approach is referred to asShanzhai,which is a Chinese neologism meaning “copycat.” In this article, we discuss theShanzhaiphenomenon and explainShanzhai'sdevelopment stages and threats to original brands across the globe. Then, we examine how cultural factors (i.e., power distance belief, face consciousness, and analytic vs. holistic‐thinking style) influence consumers’ perception towardsShanzhaiproducts. We further suggest that original manufacturers should adopt selected strategies to combatShanzhaithreats vis‐à‐vis three cultural drivers. One driver entails launching full product lines and developing new distribution channels in high power distance belief cultures but promoting brand originality in low power distance belief cultures. A second alternative involves embracing a sustainable and green brand image in low face‐sensitive cultures but strengthening brand logo impacts and enhancing intangible brand benefits—such as social value (e.g., brand user profile, prestige)—in high face‐sensitive cultures. The third entails communicating integrated product values in holistic‐thinking cultures but highlighting an offering's most competitive and unique features in analytic‐thinking cultures.