Why aren’t copycat cell phones dead yet?

Around 2008, a wave of "copycat mobile phones" swept China. In this crazy and barbaric era, the entire product, from project establishment to trial production and then to mass production and shipment, often took less than two weeks; the assembly line was also extremely short, only about 10 meters in distance. As for the testing, it was even more crude. Some mobile phones even directly downloaded the software for shipment... However, because they bypassed detailed functional testing and routine inspection items, copycat phones had an overwhelming advantage in cost. A color screen mobile phone was only sold for 200 yuan, which really made domestic consumers excited.

In just two years, not only did it create a large number of millionaires, but it also made a wide range of brands popular, such as Motorcla, Nokia and Phoenix Legend. What's even more terrifying is that the copycat culture derived from copycat mobile phones became popular all over China and was almost "promoted".

Looking back at that era now, there is a very important historical accident. From 2007 to 2009, it was a period of slack in the research and development of European and American giants and a period of promotion of new technologies. It was also during this period when the giants had no time to take care of it that the copycat feature phones became popular overnight. But everyone knows what happened later. The smart army led by iPhone swept everything, including regular manufacturers such as Motorola, Blackberry and Nokia. The elimination of copycat phones became a matter of course. In addition, the relevant departments intensified the crackdown on copyright theft, and an industry was almost extinct. In fact, the author has not seen any news about copycat phones on the portal for a long time. It was not until the news that Xiaomi was going to launch a 399 yuan smartphone that I reminded everyone again: copycat phones may not be dead yet?

The existence is reasonable, why haven’t copycat phones died out?

Now think carefully about the fact that copycat mobile phones were all the rage for a while. Although they suffered a devastating blow due to quality, service and copyright issues, there must be some remnants trying to survive. After all, existence is reasonable, not to mention that this industry can still meet the needs of some special groups.

Shanzhai phones are no longer as sharp as they used to be, but they are still active in corners that are not in the spotlight. Their advantages are still the low prices and the appearance of the rich. The main target groups are people living in urban and rural areas, and those who want to show off but are reluctant to sell their kidneys. In fact, in some remote markets, consumers have just learned about the concept of smart phones. In addition, the advertisements of international giants have not yet been posted there. They usually think that "Apple is a kind of fruit" or "Samsung is a bicycle". In this environment, exquisite appearance is the first choice for this group. What's more, the generally low consumption capacity makes users there more sensitive to prices, which is also the first meaning of the existence of Shanzhai manufacturers!

In addition, the essence of Shanzhai phones is imitation, that is, they can be synchronized with any high-end models. In fact, as early as September 10, Shanzhai manufacturers launched the iPhone 6 with Apple, priced at 999 yuan. Of course, this is just a high-end imitation phone, which can be admired from a distance but not touched. It is suitable for filming TV dramas and giving it as a gift to netizens you just met.

Why do brand owners want to squeeze out copycat manufacturers?

Copycat phones were thought to be able to survive in a corner, but due to fierce competition in the smartphone market, the channels have continued to sink. Based on this, well-known brands such as Xiaomi, Coolpad, Huawei, and ZTE have begun to seize the low-end market, and their pricing is more modest than that of copycat phones. This will create two situations for the copycat industry: either busy transforming or busy dying. What's more, they also have to face problems with chips, displays, patents, copyrights, etc.

From the sales situation in the past few years, 70% of domestic consumers' first choice is the model below 1,500 yuan. This has nothing to do with the brand, but is simply the price temptation. As the mature market becomes increasingly saturated, brands are forced to continuously lower the price range and sales channels. Some fifth- and sixth-tier cities and even remote rural areas are becoming the focus of competition for various brands. They rush in without even noticing the existence of copycat manufacturers, and these theoretical opponents are basically defeated.

If Xiaomi launches a mobile phone for 399 yuan, it will not only have an advantage in price, but also be able to provide relevant differentiated services. More importantly, compared with copycat phones, Xiaomi has a more differentiated user experience, complete after-sales service and quality system. In addition, in order to enrich its low-end product line, Coolpad will also launch ultra-cheap mobile phones in addition to mainstream products. These will cause fatal damage to copycats. We don’t have to worry about whether Samsung will sink to this range when it is desperate one day... Facing these potential opponents, copycat phones seem to have no ability to fight back. In fact, the copycat world built by quick money and hot money is like sand dunes on the beach, which will be flattened by a wave.

In addition, Shanzhai mobile phones will also face the problem of chip supply and patents in the future. As we all know, Qualcomm's monopoly fine is a foregone conclusion. Previously, Shanzhai merchants could always walk on the edge of the law by using the famous "anti-authorization" agreement (an agreement that Qualcomm can use all patents of its suppliers for free), but once Qualcomm admits defeat, this agreement will inevitably be cancelled. At that time, accompanied by a series of rectification movements, the gray area of ​​Shanzhai mobile phones will inevitably be swept away. Moreover, as brand manufacturers expand to the low end, it will not only directly affect the terminal market, but also a major adjustment to the entire supply chain. Some key component manufacturers of low-end mobile phones will definitely prefer brand manufacturers in their shipment choices. For example, chip manufacturers such as Qualcomm, Intel and MediaTek will inevitably reconsider their supply customers. After all, cooperation with Xiaomi and Huawei is more practical and cleaner.

In the Logo Era, How Can Copycat Cell Phones Change Their Way?

I don't know when it started, but China has entered an era of logos. Every item of our daily life is labeled with logos of all sizes. In this cultural atmosphere, domestic consumers are willing to pay more for logos. For example, many domestic iPhone users spent 5,288 yuan to buy a gold iPhone, but only use it to make calls and post on Weibo. Some new technologies developed by Apple engineers have never been activated, but these people don't feel they have lost out, because they bought an Apple logo. This is why the most popular mobile phone cases in China are those that show the Apple logo.

It can be said that the Chinese people’s love for logos has created the counterfeiters, who can provide high-quality imitations of any brand. However, this also dooms the counterfeit phones to eventual tragedy. After all, fake will always be fake.

The branding of knockoff mobile phones, or more precisely, the branding of low-end mobile phones, has become an irresistible trend. The author believes that as the army of brand manufacturers presses into the low-end market, the most likely fate of knockoff manufacturers is not a counterattack by losers, nor is it to be wiped out, but to be recruited by brand manufacturers, bring their own unique advantages, and jointly and accept their own brands to develop the low-end market.

In fact, from a technical point of view, copycat manufacturers are not without merit, and they can even launch their own brands based on this. However, they generally did not have such awareness in the early days. Moreover, brand awareness is a long-term sedimentation and accumulation process. Obviously, copycat manufacturers who have been plagiarizing with their lives have very slim hope of achieving a counterattack in terms of brand.

However, these manufacturers have very novel marketing ideas and cost control methods, as well as the ability to integrate upstream and downstream resources. If they accept the amnesty, they may shine in a formal mobile phone manufacturing environment. After all, the most scarce ability for brand owners to seize the low-end market is cost control ability, and even international giants have to face the problem of rising costs.

For example, Apple was in a lot of debt before the iPhone became a big hit. The first thing Cook did as CEO was to readjust logistics and move factories in the United States to Asia, close to suppliers of chips and displays, which not only improved delivery efficiency, but also reduced logistics costs and quality risks. Admittedly, the most common way for copycat manufacturers to reduce costs is to sacrifice quality, but within the overall framework of cost saving, there are still some ideas worth promoting, such as lean production concepts, such as streamlining inventory, employee waiting, and handling waste. These details are often what large companies and brand owners lack the most.

The idea of ​​recruiting may be a bit cruel to the copycat manufacturers who have always wanted to counterattack, but it is the best way for them to change their ways. Moreover, following the formal brands, learning advanced technology, processes, and brand culture building ideas should be a good thing for any mobile phone practitioner, not to mention that they still have to face the embarrassment of "how to marry themselves off".

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.