Thursday, April 2, 2009

Shanzhai report from forbes

below article is from Forbes.com just for your refrence and information


China's Black Market Boom
Gady Epstein, 01.29.09, 05:00 PM EST Forbes Magazine dated February 16, 2009
Who needs Nokia? The spirit of shanzhai rules the phone-pirate's cove in Shenzhen.

Something was wrong with Zhao Shengli's order of 200 Nokia phones at a wholesale market in Shenzhen--the phones were missing one of the languages he needed, Thai. The good news, though, was that the phones were fakes, and in China, counterfeits come with enterprising customer service. "We have factories right here," the stall owner, Xie Qiuqing, assured Zhao. "Come back at four this afternoon and the phones will be ready. It's fast."
Regardless of the state of the global economy, one robust sector that adjusts as efficiently as any other in the world is the Chinese black market. Despite years of official rhetoric about cracking down on pirated products, the urge to make a quick buck through imitation remains so entrenched in China that it has matured into a celebrated culture of its own.

That culture now has a name, shanzhai. The phrase literally means "mountain fortress" and figuratively conjures a romantic notion of bandits in a mountain hideaway taking potshots at the established giants.

"Shanzhai culture is a rebellion against the monopoly sectors," Li Zonggui, a philosophy professor with Zhongshan University in Guangzhou, wrote in a pro-shanzhai manifesto. Shanzhai, he explained, "shows the desire by poor people for a better life and fashionable things."
Shanzhai has undoubtedly broadened the availability of modern technology to many in Asia who previously might not have been able to afford "the real thing." Mobile phones in particular represent the far-reaching influence of shanzhai. Stroll through either of Shenzhen's two sprawling multilevel wholesale phone markets and it is quickly apparent why shanzhai phones appeal both to Chinese consumers--who buy 150 million mobile phones a year--and to retailers planning to resell their hauls in places like India, Thailand or, in middleman Zhao's case, Laos.
Bandits supply these markets with phones that come with the superficial look and feel of brand-name handsets but at a fraction of the price. The posters for iPhone look-alikes invariably superimpose their product name on a screen shot of an actual iPhone, without bothering to change the cell signal in the upper left of the screen that reads "AT&T 3G." These smart phones sell for as little as $100, where a real name-brand version might sell for three to six times that much.

Is it a recession-proof business model? Not quite. Sellers say business is down 30% from a year ago, and Chinese media reports say that slowdown has been reflected recently in factory shutdowns on a similar scale. But shanzhai will survive, because in a global market racing to the bottom, shanzhai products--unencumbered by taxes and all sorts of legal registrations--rate as fastest and cheapest.

Shanzhai mobile phones, please check
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Wednesday, December 10, 2008

A nice article in another blog

The future is "Shanzhai", faking it for real


A recent article in the People's Daily Online reminded me of a recent experience in China. On numerous occasions I was offered a fake iphone. Given the technical quality of this product it amazed me that such an item could be faked in the sense that it actually worked and how it could be done so cheaply. Whilst this shows up the profit margins that Apple must make on these products it also shows the skills that are inherent in Chinese firms. Even replication takes considerable effort.It turns out that the market for fakes has a name - "Shanzhai". This article is interesting on many levels but does suggest that Western brands are fighting a losing battle in China.I am still left a little confused.

Take this quote from the article below:
Xiang said compared with real ones, there was still some way to go in terms of functions, quality and after-sale services, but these "Shanzhai" items were still worth buying."They were usable and cheap. They look exactly like real ones and make me cool. That's enough for me," Xiang said.

Now I understand the "coolness" bit but this suggests that a fake iphone will look like an iphone but not work like an iphone. However, at least some elements must work even if it is just the phone bit. It is not hard to see why demand would be so high it such a status driven country that is just discovering the joys of capitalism and conspicuous consumption.The Hiphone maker is also refreshingly honest stating that he accepts that Apple might sue him. I expect by then the profits will have been safely stashed away and the company will disappear - IF Apple are ever able to find him. The costs are small and the gains are huge.It looks like the word "Shanzhai" has gone mainstream.More importantly, China is only going though the stage of development that was followed by Japan in the 1980s. Japan imitated and then realised it that it could do better than the West. China is merely following this well trodden path to development. The West innovates and provides the creative spark, the East copies, improves and takes the products mainstream at a cheaper price.The only solution for the West is to keep running to stand still and maintain high levels of R&D spending as China is catching up very fast.

for details about Shanzhai mobile phones, check www.babikenshop.com and www.babiken.com

Sunday, December 7, 2008

something good for you to understand Shan Zhai Products

The Phenomenon of Shan Zhai Products and Culture

No matter whether you have heard the word "Shan Zhai" or not, you can't deny the fact that "Shan Zhai" is everywhere.
"Shan Zhai" is a popular word that can be used as a noun, adjective or verb. Basically, it means "cloned." It can be a cell phone, TV series, laptop computer or celebrity. Some people support this concept, but others hold a different view.
Our reporter brings us more.Reporter: Oh, my God! It's loud! When you hear an obnoxiously loud ring tone, you know it comes from a Shan Zhai cell phone. But it's just a tip of the iceberg of Shan Zhai cell phone's powerful functions.
Big LCD screens, mobile TV, high definition cameras, Bluetooth, Java support, double cards, double durations and double modes: Shan Zhai cell phone designers try their best to copy the functions of big brand phones while charging about one-third of the price of those made by authorized manufacturers.

Ma Shuai has an online store that sells cell phones, some of which are Shan Zhai made. He thinks the current Shan Zhai cell phone market is maturing."Honestly, the quality and technology of current Shan Zhai cell phones is much better than a year or two ago. After a few years of competition, some Shan Zhai technologies are mature. They have become capable manufacturers and have a registered trademark.

Their biggest markets are African and southeast Asian countries, where their products are famous for their reliability and low price."But Li Xinyan thinks this is unfair for big brand manufacturers."It's actually piracy. Successful brands may have spent a lot of time and money on technology and marketing. Shan Zhai just copies them for free. But it's hard to say: demand drives their deeds.

"The trend of Zhan Zhai is not confined in copying hardwares. Many famous TV programs and other video products are also target of conterfeiting. Wang Zhe is a TV program editor. She thinks that many Shan Zhai vedio products reveal the secret behind the prosperity of counterfeit culture products."The original TV versions of 'Dream of Red Mansion' are often not as funny as the Shan Zhai version. Easy access to modern technology have made it easy for average people to express themselves through these vedio products.

"Although people hold different views toward Shan Zhai products and culture, people like Li Xinyan believe that manufacturers can't sustain by simply copying the hard work of others."For Shan Zhai dealers, if they only clone other people's products or image, it may give them limited short-term benefits like increased attention or profits. But it's not a good thing for long-term development. Creating your own identity is key."

The above article is just for your information. We do not intend to infringe any copyright.

www.babikenshop.com www.babiken.com

Saturday, December 6, 2008

This is true but it has markets

The below article is from China Daily just for information purpose and I do not intend to infringe copyright.

This is no way to be creative

When more low-level imitated dramas borrowed from the US hit the screens, people give them a name - shanzhai, the same one they have always given to those coarsely imitated cell phones and MP3s. These shanzhai products, however, seriously hinder creativity, says an article in Shenzhen Economic Daily. The following is an excerpt:
In China, shanzhai is an ironic modifier, usually put before electronic products such as mobile phones and MP3s, to indicate that these products, though bearing similar brand names or similar outward appearances and functions with famous-brand products such as Nokia and IPod, are actually manufactured in village workshops without independent technology. This word is also used to refer to some people who strongly resemble certain celebrities and thus are invited by advertisers to serve as spokesmen for their products.
Shanzhai mobile phones, MP3s and stars are quite common for Chinese netizens now. But recently, some netizens found that the newly broadcast comedy drama Ugly Wudi is adapted from the US counterpart Ugly Betty. On a closer check, they found that China has adapted so many overseas dramas in the past, so they also called them shanzhai dramas.
China's film and television circle has entered an era of extreme lack of creativity. For one thing, reproduced dramas are prevailing. Classic kungfu novels have been repeatedly adapted into scripts to shoot films or TV dramas, with one novel being reproduced once in two or three years. For the other, dramas that only follow others are also plaguing this circle. As dramas featuring Qing Dynasty (1644-1911) won the favor of audiences years ago, men wearing pigtails and Qing-styled costumes have begun to sweep across nearly every TV channel.
Under such circumstances, shanzhai dramas based on US originals become a better choice than the previous two. But most of them have not yet solved the property right issues with their overseas counterparts and thus they have illegally seized the fruits of others. Worse still, rampant low-level imitations kill creativity.
(China Daily 10/08/2008)

This is an article about Shanzai culture in China. Yes, Shanzai "products" to be blame but I see a huge market that embrace these Shanzai "products".
FOR Shanzai mobile phones, check www.babiken.com or www.babikenshop.com

Tuesday, December 2, 2008

Collections of What Chinese "Shanzai Ji" (Shanzhai Ji) )is

When you buy China mobile phones and hear a Chinese say this is "Shanzhai Ji" (Shanzhai Mobile Phone), you might feel it weird. You can hear the word of Shanzai everywhere and the news about it everywhere recently. Originally it came from China mobile phone industry but now it expands to a wide range of our lives, and even to the entertainment industry. The name of "Shanzai" will surely be the most popular vogue-word of this year of 2008 in China. but what exactly does it mean?

To help you to understand what "Shanzai" or "Shan zai Ji" is, I start this blog to give you the details and news about it and also I will also introduce all types of Chinese or China "Shanzai Ji" mobile phones as the word is from mobile phone industry and I am the owner of Babiken.com and sell mobile phones.