China Now Is Knocking Off Fine Wines

Well, I guess it was just a matter of time until the resourceful knock off artists targeted high end wines.  Given that China's upwardly mobile citizens are quick to show off their new wealth and supposed sophistication.  The Chinese are apparently using their new wealth to consume imported wine and other luxuries.  This, in turn, has led foreign producers into looking to unlock the lucrative Chinese market.  According to the Wine Institute, China is the fifth largest foreign market for wines.  Even Yao Ming, the former NBA basketball star, is getting into the wine business by importing a Napa Valley Cabernet that retails for almost $ 300 a bottle. 

All of this opens the way for knock off artists.  The Chinese market is particularly vulnerable to the knock offs because the allure is more about the label and less about the way the wine pairs with the meal.  As relatively newcomers to the higher end wines, the Chinese in general have a less well developed palate.  Also helping the counterfeiters is China's inconsistent enforcement (that is no surprise). 

You have to give it to the counterfeiters.  They found a weakness in the consuming public, in enforcement, and an easy way to knock off high end wines.  The two primary ways that the counterfeiters do their work is to purchase or obtain emptied bottles of high end wines and refilling them or tweaking the label slightly.  Not much different than the way they counterfeit almost anything else.  So, when in China, be careful when ordering that imported wine.  

Update on Chinese Apple Store Counterfeiters

            Well, apparently, Apple was able to convince the government to shut down several of the counterfeit stores in China.  As I mentioned in my earlier post, the counterfeiters were very thorough--they even copied the employees' uniforms and name badges.  That is detail-oriented at its finest!  In the city of Kunming (southwest), there were around 24 fake stores.  Incredible.  What is even more incredible is that a company like Apple waited until 2008 to put together an anti-counterfeiting team and plan.  Apple did not even register its trademarks in China until this new anti-counterfeiting team was put together. 

            China, which manufactures many (if not most) of Apple's products, produces enough fake Apple products to supply the entire world.  China is also one of the biggest markets for Apple's products.  Given this rampant counterfeiting, it is incredible that Apple would wait so long to protect their rights and try to stem the tide of fake products and stores in China.  Remember, this is the same Apple company that has relentlessly pursued Samsung over its tablet patents all over the world. 

            It simply does not make sense for a company like Apple or one which has products made in China (a known piracy and counterfeiting hub) to take precautions to protect its brand or intellectual property.  A glutton of poorly made knock-offs could irreparably harm a company's reputation.  Even a small business should look to protect its intellectual property at home.  You don't have to be a huge, multinational corporation before you start thinking about protecting your property. As part of any business plan, you should think about any potential intellectual property rights which your business may own or develop and devise a plan to protect that property.  You should regularly revisit and revise the plan as your business grows or changes.