If you think counterfeits are BAD for a brand in China… you’re looking at it WRONG
Foreign brands entering China often bring up the concern, “People are selling counterfeit versions of our product online in China at a lower price. How can we compete?”
My answer to them is simple… you’re looking at this the wrong way.
Let me explain…
If you’re a foreign brand that’s entering China, having a gray market for your product is actually a GOOD thing (assuming you’ve registered your trademark properly… a point I’ve by now beleaguered.)
Tmall is structured to FAVOR the brand. He who owns the trademark owns the traffic.
This means that when you register your Tmall store (and register the trademarks successfully to your store) you will be the only entity that can legally sell it on Tmall. AND you will also receive the rights to all of the traffic on your brand.
You essentially get to “take back” all of that gray market traffic and use it to benefit YOUR BRAND.
This is why I’m never scared when faced with counterfeits. They signal that there’s activation for the brand, which is a VERY GOOD sign.