Harmonious Mobile Phone Stores in Changsha, China

To improve the experience of viewing two photos I will share in this post, I highly recommend playing a particular video for some background music to set the mood (video also here on YouTube):

If you are located in a country such as China, Iran, Syria, and Turkmenistan where YouTube is blocked to prevent you from hearing and seeing its nefarious content, then maybe you can play this Youku copy which may include an advertisement at the beginning (the video does not appear in some readers; not sure why, but it is also here on Youku):

If you are not able to play music at the moment, then I recommend simply singing the song "Ebony and Ivory" to yourself. Make sure to try your best to imitate Paul McCartney's and Stevie Wonder's different voices. And ignore any strange looks from people around you. This is really worth it.

Now that an appropriate theme is in the air, here are two mobile phone stores I saw today in downtown Changsha, Hunan province:

The stores complement the "fake" Android store and many "fake" Apple stores I have seen in China. Not surprisingly, both stores sold Apple and Android mobile phones. The second store also had an extensive selection of Nokia phones, including several which run the Windows Phone 7 operating system.

I will avoid delving into any possible deeper points so you can immerse yourself in this touching moment of blissful harmony. You may even want to play the video multiple times.

Mitt Romney and Counterfeit Apple Stores in China

The most recent U.S. presidential debate touched on some China-related issues, and I would like to comment on at least one of them.

No, this post will not be about the single question from a Shanghainese female I know:

Binders of women. What does 'binders' mean here?

Nor will it be about the many creative answers she received from friends.

Instead, I want to focus on this statement by Mitt Romney (copied from a debate transcript here):

We can compete with anyone in the world as long as the playing field is level. China's been cheating over the years. One by holding down the value of their currency. Number two, by stealing our intellectual property; our designs, our patents, our technology. There's even an Apple store in China that's a counterfeit Apple store, selling counterfeit goods. They hack into our computers. We will have to have people play on a fair basis, that's number one.

When listening to the debate live, Romney's reference of the "counterfeit Apple store, selling counterfeit goods" struck me as peculiar. I had assumed he was talking about the widely-reported "fake Apple Store" in Kunming. But that situation has long since been resolved, and I am not aware of any evidence that the Apple products it sold were counterfeits. However, it would be easy for me to believe there exists at least one store somewhere in China that could be reasonably called a "counterfeit" Apple store and that sells counterfeit goods of some sort (even if they aren't Apple products but instead are accessories designed by other companies). Since it is not clear which exact store Romney is referencing and he does not specify which type of goods are being counterfeited, I would not consider Romney's Apple store claim to be necessarily untrue. But whether he was referencing the store in Kunming or another store in China that has somehow caught his attention, I am not convinced the example was relevant in regards to arguing that the playing field is not level in China.

As I have detailed before, what counts as a "fake" Apple store can be fuzzy. And since so many potential offenders can still be found, at least at the moment Apple may only be taking action against those that go to extremes in imitating a real Apple Store. Furthermore there exist many Apple-authorized retail stores in China that are not Apple Stores, and it is not illegal for unauthorized stores to resell genuine Apple merchandise in China (see previous two links for more about these topics and examples of both fake and authorized Apple stores in China). Although I have seen mobile phones for sale in China that appear to inappropriately use Apple's trademarks (see here and here for two of my favorite examples), I have never seen such phones for sale in what I think could reasonably be called a "counterfeit Apple store". Also, I am not aware of any evidence that many fake Apple stores are selling counterfeit products that look and function like genuine Apple products. Instead, most reports and my own experience suggest that the Apple products being sold at such stores are purchased from authorized Apple stores. The Apple Store in Hong Kong has been a particularly popular source due to differences in prices and availability of products, and it plays a role in China's extensive grey market (for other examples of grey market activities see here and here). See here for some examples of stores in Guangzhou who earlier this year openly stated that their iPhones come from Hong Kong (also includes many examples of stores in Hunan province and elsewhere in Guangzhou province). See here for a more recent example in a Reuters report from nearby Shenzhen.

So, although Apple certainly faces challenges in China, I don't think the "counterfeit stores" are effective for the point Romney was making. After all, those stores mostly appear to be selling genuine products purchased from Apple.

If Romney had his heart set on using a tech example to make his case, I think there would have been more suitable options. For example, an online service that is blocked by China's Great Firewall, such as Google's YouTube, could touch on the issue of fairness while also touching on another issue that can stir up American voters. Mentioning YouTube's situation could show Romney is concerned about the restrictions on free speech in China. It is also an example of where China's censorship leads to a playing field that is not level. After all, YouTube cannot expect to make much profit in China if it is blocked. China's Great Firewall is even helping Chinese companies get business from American companies (see here for one example related to YouTube). And if you think services such as YouTube are only blocked due to reasons of censorship, read here about a Chinese woman in Guizhou who thinks there are also economic reasons for Google's "problems" in China. Regardless of the reasons for the blocking, though, I think it is fair to assume that most American voters could be easily convinced (if they aren't already) that YouTube is not on a level playing field with its potential competitors in China.

However, some would largue that all is indeed fair in regards to YouTube and that Google just has to observe China's censorship laws. Well... if Romney is sensitive to such concerns, then he can mention another well known tech company. Microsoft could make a kadzillion* dollars if all the copies of its software in China were used under proper licenses and not pirated versions. The problem is so extreme that Microsoft has reportedly even had to make a formal request in China that several state-owned companies stop using pirated copies of Microsoft software (see here). And although there may be disagreements over the severity of the problem (at least in public statements), the Chinese government has openly stated it wishes to reduce software piracy. So even they appear to acknowledge (at least in their words) that there is a problem. Again, I think American voters would readily view Microsoft's situation as not fair. The only caveat that now comes to mind is any Chinese software company probably also faces issues with piracy in China. So I suppose one could say there is a level playing field in that regards. However, the problem has a much larger financial effect on American companies such as Microsoft, and no Chinese company faces a similar problem succeeding in the US.

So why did Romney mention Apple's situation instead of Google's or Microsoft's? I could speculate about reasons that relate to either Romney's interests (for example, he might think Apple is "sexier" to voters or he might have a very specific definition of "level playing field") or Google's and Microsoft's interests (for example, they may not consider it to be beneficial to resolving their China-related problems for them be publicly stated by a prominent U.S. politician) but... I think it is best to just say I really don't know.

Finally, I don't expect this critique to pose a significant setback for Romney. Although I was puzzled by his statement about a counterfeit Apple store and wanted to comment on it, American voters will likely be far more concerned about many other statements made during the debate.

Even those about binders.


*"Kadzillion" equals whatever amount Microsoft would make under such conditions.

UPDATE: Paul Mozur in the China Real Time Report writes that Jessica Angelson, the blogger who brought attention to the fake Apple Store in Kunming, "didn’t feel her find was being used properly" by Romney. Again, even though it was my first interpretation as well, at the moment I don't think it can be said that Romney's words definitely refer to the Kunming store. But even if they don't, the example would not seem to be highly relevant to his point. Maybe Romney will shed more light on this issue.


Disclosure: I previously worked as a user experience researcher at Microsoft China. All of the information and claims about Microsoft in this post are based solely on public sources (except for my newly-created word "kadzillion") and in no way represent "inside knowledge" on my part. The rampant pirating of Microsoft's products in China is well-known and easy to see.

Android Shirts and Samsung Sales at a Store in Shenzhen

One day at Shenzhen's Dongmen shopping area two young men walked by with shirts I could not help noticing:



Their blue shirts reminded me of the shirts worn by employees at Apple Stores, except the Apple logo was replaced with Android logos. I wondered if it was possible they worked at a store that might rival the Android store I found in nearby Zhuhai. After a brief chat, they happily pointed me in the right direction to find it.

Although the store proved to be ordinary (for China) in most respects and sold a variety of phones, I was mildly surprised to see that not everyone was wearing an Android shirt. Some of the employees wore similar shirts with an Apple logo similar (if not identical) to those seen at Apple Stores -- not the first time I have seen that in China.

I proceeded to have a in-depth conversation with one of the store managers who opened up on a variety of topics. One issue I found notable was that this manager thought some of the Nokia phones they were selling, such as the N9, ran Windows Phone 8. However, the N9 and the other Nokias available at the store ran other operating systems. I suspect his confusion is a sign of deeper issues, but I will refrain from saying more at this point.

I also found it interesting to hear his account of the store's sales and why he thought various models sold better than others. The biggest nugget in it all was that their best seller was Samsung smartphones running Android. Given what I had recently seen elsewhere in China and reports of Samsung's current strength in China, this did not come as a surprise.

So, the store seems to be another sign of good news for Google in China's dynamic mobile phone market. And like the Android store in Zhuhai, maybe the shirts can provide some inspiration as well. Though Google might prefer a different color.

The Fate of the Android Store in Zhuhai, China

Update at end

More than four months have passed since I first posted about the "Android store" I stumbled upon after I took a random bus trip in Zhuhai, Guangdong province. One issue some people raised was whether its days were numbered due to possible actions from Google. But I assumed that the store, like many unauthorized Apple stores in China, would not face any immediate interference.

Last week I happened to be in Zhuhai, so I returned to its Nanping district to checkup on the now semi-famous store. At first glance, it did not appear much had changed:

Still there

The inside of the store was also mostly the same as before. One difference was that there were no Apple computers for sale -- only iPads and iPhones were available (see here for earlier photos from inside the store). Another difference also caught my eye. The staff were wearing store shirts:

She was happy to have her photograph taken.

Sorry, the shirts are not available for purchase.

The Android robot is displayed on the front of the shirt, Apple's logo is on the right sleeve, and Android, Windows Phone, Symbian, and iOS are on the back of the shirt. Given the store's sign, it seems fitting that Android is the most prominently featured brand, even in the shirt's color. It is worth nothing that what appears to be the name of the store on the shirt is the same as the Chinese words which appear underneath the Android logos on the store's main sign.

Although finding that the store still existed did not surprise me, there was something else I was less sure about. Would the store inspire others?

I found the answer at another store just down the street. Here it is as I saw it several months ago:

One of the many stores in the area with a Nokia sign

But the store has since undergone a bit of a makeover:

The large Nokia sign on the outside of the store has been replaced with the Android robot and what is presumably the store's Chinese name (which is similar to the other store's Chinese name and also does not include the Chinese word for "android"). The Nokia sign on the inside of the store has been replaced with a Samsung sign. Another outside face of the store is now partly in the Apple style, but it curiously includes the Android logos on the middle column. However, this mix of Apple and Android may not be so surprising since this same store previously had an ad for the iPhone that included a singing Android robot.

I will refrain from any deep commentary. I simply wanted to share that not only does the original Android store remain, but it appears to have an imitator.

And now I wonder if more will soon appear.



UPDATE: A little over a year later, much had changed. See "The Fate of the Android Store in Zhuhai, China: Part II" for more.

Tibetan Monks, iPhones, and Luxury in China

Yesterday, I visited this mobile phone store in Xining, Qinghai province:

It included a variety of mobile phone brands commonly seen in China, such as Nokia, Oppo, K-Touch, and Apple. It also included some lesser-known brands, some with curious names such as Samzong. The most remarkable experience I had in the store, though, was meeting these three Tibetan Buddhist monks:

In the photo one of the monks can be seen holding an iPhone. In fact, all three had iPhones. To be clear, many Chinese could not afford an iPhone. If monks with iPhones come as a surprise, it is worth noting that some of the store's employees appeared to be surprised as well. The monks were in the store so they could upload new apps to their phones. Behind the monks is a computer where for 60 yuan (about U.S. $10) one can purchase a set of apps for either Apple or Android mobile phones.

In various regions of China I have often seen monks using mobile phones. For example, four years ago in Yangzhou, Jiangsu province, I had an excellent vegetarian dinner with this (non-Tibetan) Buddhist monk:

However his mobile was not an iPhone, and not I do not know for sure whether iPhone usage amongst monks is now widespread (I doubt it).

Although they may not be representative of other Tibetan monks, the three men I met in Xining highlight that more and more people in China have an iPhone. This is obviously a good sign for Apple. But some consumers in China (and elsewhere) are at least partly motivated to buy an iPhone due to a desire for "luxury" items that are fashionable. It will be interesting to see whether the iPhone's more widespread adoption impacts their choices.

Finally, the monks' iPhones were not the only thing that caught my eye:

His newly purchased DVD of Colombiana is probably pirated.

iPhones and DVDs of Western movies -- both part of these modern Tibetan monks' lives in Qinghai, China.

Insights and Headaches for Apple: The iPncne in China

As I mentioned before, unauthorized Apple stores are common in many regions of China. At the moment it appears that Apple will only respond to "fake Apple Stores" that take extreme measures to imitate a genuine Apple Store. A related area of concern for companies such as Apple is protecting not how their trademarks are used in stores but on products being sold.

I previously shared an example of a Chinese mobile phone that appeared to inappropriately use some of Apple's trademarks. I will call it the "Think Different Phone". It certainly is not alone in China. For another example, here is a phone I saw for sale in Yinchuan, Ningxia:

It would be hard to believe that the resemblance of the apple logo and the iPncne name to Apple's trademarks is accidental. In the post about the Think Different Phone I discussed how despite their possible trademark infringements such phones can provide insights about features possibly desired in the local market. As an example, similar to the Think Different Phone the iPncne has a dedicated button for QQ -- a popular social networking service in China:

But what I believe can be an even more important feature is found inside the phone:

The capability of this iPncne to hold dual SIM cards would matter to many Chinese mobile phone users. For an example of why, see my post from last year "Mobile Phones in China: Local Rates, Fashion, and Fakes".

Even for the many Chinese-designed phones not noticeably violating any trademarks, "localizations" such as the above can indicate features desired not only in China but elsewhere as well. But regardless of any insights the iPncne may provide, Apple is probably still concerned about protecting its trademarks. Even if the apple logo and iPncne name do not cross the line for Apple, I think there is something on the back of the phone that would be hard for them to accept:

In small print below the iPncne name is written:

Designed by Apple in California Assembled in China

At least the second half of the line seems true. I have not contacted Apple for comment about the first half. I suspect their private comments would be much more interesting.

More of the Same: "Fake" Apple Stores in Zhuhai, China

I have shared photos of various "fake" Apple stores in Hengyang, Chenzhou, and Guangzhou in China. Most recently I shared photos of an Android store and several Nokia stores in Nanping, Zhuhai. Although I did not see any stores in Nanping appearing to identify themselves as Apple stores, I did see these two stores in another part of Zhuhai -- Gongbei:

Neither appears on Apple's list of authorized stores and both have characteristics of other unauthorized stores I have seen. I would share photos of other similar Apple stores in the area, but I feel the point has already been made. I share these photos simply to emphasize that such stores are not at all atypical in many parts of China.

However Apple may be reacting to unauthorized stores, it appears that they face a daunting task if they plan to swat down every example. And still more such stores are springing up in China. In fact, the first store seen above is one of the newest.

Nokia Stores Selling a Variety of Phones in Nanping, Zhuhai

The Android store I saw in Nanping, Zhuhai was unique in my experiences. However, as I mentioned when sharing photos of the inside of the store, I think it is important to shed more light on what is and is not unusual about the store by providing some additional context.

I will now share some similar examples of stores in the same shopping district highlighting another world-famous brand -- Nokia. Although Nokia may still be the single most popular brand of mobile phones in China, Nokia's strength in China has declined -- in part related to the rise of Android devices. However, Nokia hopes a line of newer phones running Windows Phone 7, including the Lumina 710 and the Lumina 800, re-boost Nokia's prominence in China.

Down the street from the Android store this Nokia store* may not seem striking from afar:

Similar to the Android store, a Chinese name is also on the sign. But its name "诺基亚(名流)专营店", which can be translated as "Nokia (Celebrities) Authorized Store",** is more specific than the Android store's Chinese name. It would seem to further suggest that this store focuses on Nokia products. However, as one approaches the store there are indications it has a more varied selection:

The greenish display is for Oppo, a Chinese brand with Android-based smartphones. Those with keener eyes may also notice displays for Koobee and Xiaomi, also Chinese brands. More is revealed as one gets even closer:

Oppo's "Find Me" media campaign featuring Leonardo DiCaprio can be seen on the left side. Other brands available in the store are also clear such as Apple, BBK, LG, and Samsung. Is this Nokia store unique? Not at all:

Again, these are all within easy walking distance from the Android store and they all sell a variety of Chinese and foreign branded phones despite so prominently displaying "Nokia"on their store signs.

Although Nokia seemed to receive this treatment frequently, it certainly was not alone. For example, here is a Samsung store:

And here is a store combining the spirit of Samsung and Nokia:

They both sold a variety of phones. Amongst other brands, the second store sold Moral phones (also a Chinese brand) and the staff wore shirts with the Android robot logo.

The above provides a taste of the store sign issue. Another feature of the Android store was the variety of phones that could be found in a display case with a specific brand name. This is another area in which the store is not unique. Here is a relevant example from a display case sitting outside one of the many mobile phone stores in the area:

It includes mobile phones of Chinese brands such as Daxian and Telsda. You may now be thinking "Hey, there are iPhones too!" However, those are not iPhones. The remarkably familiar-looking phones are made by Chengji (诚基). Whatever their story, they are not made Nokia.

I saw numerous other examples of display cases with mismatched phones. It appeared to be very common.

There are some further issues I would like to touch upon and other "interesting" photos I would like to share, but I have already shared quite a bit in this post. For now, I just want to say that based on my recent explorations across China what I have shared above is not unique to Nanping, Zhuhai. I do not believe it is highly unusual for a mobile phone store to sell a variety of brands despite prominently displaying a specific brand on its store front and for it to maintain display cases containing phones not matching the name on the display. What was particularly unique (to me) about the Android store was that I had never before seen a mobile phone store in China leveraging the Android brand so prominently and extensively. The store's inclusion of phones not based on Android may seem striking, but as some Nokia store owners in Nanping could quickly tell you it is not unique in that respect.



* I realize there could be a debate as to whether the terms "Android store" and "Nokia store" are appropriate. I am fine with them being interpreted as shorthand for "Store apparently portraying itself with a sign as an Android phone dealer" and "Store apparently portraying itself with a sign as a Nokia phone dealer" respectively. In a later post, I hope to touch on why it is reasonable in China to interpret the signs in this manner.

** I have seen a few people claim that "名流" is best translated in this case as "famous". My understanding is that "名流" is a noun typically specific to people. In that case, using "famous" could lead to unintended interpretations in English. I thank my Chinese friend who does professional translation work for her input on this matter. Regardless of the translation, it is not of much relevance to the main points I have made.

Inside the Android Store in Zhuhai, China

Update below

Since there has been a bit of interest about the Android store I saw in Nanping, Zhuhai, I returned to the same location today to conduct some further explorations:

Pedestrian (mostly) street in Nanping

The friendly staff permitted me to take a few photos, so I will share a few. Here is someone trying out an iPad:

There were a broad variety of smartphones for sale. This HTC case:

included brands such as BBK, Huawei, Motorola, Nokia, Samsung, and Sony Ericsson. Oh, there was one HTC phone too.

This Android display:

The reflection adds a nice touch.

included a similar selection. At least the display cards for the Nokia phones did not indicate they ran Android and did not include the Android logo.

This Android display:

included a ZTE U880 running Android 2.2 on the left and a Lenovo A60 running Android 2.3 on the right.

I did not see any BlackBerry phones so I am not able to top the BlackBerry marketing with Barack Obama I saw at a mobile phone store in Chengdu. Also, all of the phones appeared to be legitimate brands. There were no copycat "creative-but-inspired-by-Apple" phones such as the one I saw which included a portion of the Apple logo and the phrase "I See Things a Little Differently". Regardless, this display of HTC phones especially caught my attention:

Outside of China, the second phone from the left is often described as the HTC Eternity. However, that is based on its code name and its official name is the HTC 凯旋 X310e. If your Chinese is rusty, 凯旋 could be translated as "Triumph" though another translation I have found is "Return Triumphant". But here is the really fun part: although many HTC phones run Android, the X310e is a Windows Phone that was just released for sale two day ago (so, I doubt it was there during my previous visit). In fact, the label mentions that it runs Windows Phone 7.5 just above the image of the Android logo. Between Google and Microsoft, who is now groaning most?

The visit also allowed me to better clarify another issue. The store's business cards list its name as the text "名流智能手机体验店" shown below "Android" on its sign. This is similar in practice to what I noticed for some of the "fake" Apple stores I recently saw in Guangdong province and Hunan province where they did not list "iPhone 4" (or whatever was prominently displayed on their sign) on their business cards but instead a more proper-sounding name. I do not want to share an image of the front of the card since it includes a helpful employee's name, personal mobile phone number, and QQ number (not uncommon in China). However, I am happy to share the backside:

I am not sure if they plan to update it with a Windows Phone logo.

Before commenting further, in an upcoming post (by Monday) I will share photos of some other nearby stores. They provide important context for understanding what is and is not unusual about the above store. The context will also be useful for my responses to some comments and questions I have received or have seen on some of the articles/posts now referencing my earlier post.

Here is just a small taste of what is on the way:

More soon.


UPDATE: See in what ways this Android store is not unique in the post "Nokia Stores Selling a Variety of Phones in Nanping, Zhuhai"


Disclosure: I previously worked as a user experience researcher in Microsoft China's Mobile Services China group. This exploration was not conducted as paid work nor at the request of any company.

Android Store in Zhuhai, China

Updates at end

An earlier post here provided an overview of the "fake" Apple stores, including iPhone stores, I saw in a number of cities in Southeast China. Another post shared photos of a variety of other mobile phone stores in Chengdu, Sichuan province.

Although I have included photos of a variety of stores, at least one company may feel left out. If so, Google can now perk up. I saw this Android Store after I took a random bus to Nanping in Zhuhai, Guangdong province:

Android store in Nanping, Zhuhai

"名流智能手机体验店", which is under the word "Android" on the store's sign, can be literally translated as "Celebrities Smartphone Experience Store". In short, if you want to be like a celebrity (or you are celebrity) this is presumably the place for you. The idea of an Android "experience store" reminded me that several months ago in Melbourne, Australia Google opened its first "Androidland". Mike Isaac on Wired described the store:

Created in collaboration with Android device manufacturers, “Androidland” showcases the many different devices that run Google’s operating system in a fun, Android-themed environment. And rather than merely hawking the devices, special displays and gaming kiosks aim to inform potential buyers about how Android works, and what devices may be best for them.

Perhaps the owner of the store in Nanping was inspired by Androidland. As far as I know, Google has not opened any official stores in China, so this could also be another opportunity for a foreign company to be inspired by local design (in this case "store design") in China. It could also be another opportunity for a trademark dispute. Whatever the case, I doubt Google would be thrilled with all of the choices made by this Android store owner. For example, in addition to a variety of Android-based mobile phones the store also sold Apple products such as iPhones, iPads, and computers (no ifads for sale, though).

Sign for iPhones and an iPhone accessory display case at the Android store

Maybe some celebrities in Zhuhai demand Apple products. However, Apple lists only one authorized retailer in Zhuhai. Of no surprise to me, its address is nowhere near the above store and it does not have "Android" in its name.

After scratching an Android store off my list, I will now keep my eyes open for another brand. After all, Windows Phone 7 officially launched in China today. That could mean some additional interesting stores are on the way.


UPDATE 1: More on this store in the more recent post "Inside the Android Store in Zhuhai, China".

UPDATE 2: See in what ways this Android store is not unique in the more recent post "Nokia Stores Selling a Variety of Phones in Nanping, Zhuhai"

UPDATE 3: See what I discover when I visit the store several months later in the post "The Fate of the Android Store in Zhuhai, China"

UPDATE 4: About a year and half after my first visit, much more had changed—see "The Fate of the Android Store in Zhuhai, China: Part II".



Disclosure: I previously worked as a user experience researcher in Microsoft China's Mobile Services China group. This exploration was not conducted as paid work nor at the request of any company.

From Nail Shop to Factory Life in China

When I was last in Shenyang, Liaoning province, I visited a large underground shopping mall popular with many youth. While there I had the opportunity to speak with this young woman working at a nail shop:

Selling fake nails with a variety of designs

As we talked I got to learn about some of her life. And I tried to understand some of the decisions she had recently made, including the choice of her mobile phone:

However, it was another decision that I found most striking. When I asked about her hopes for the future she said without hesitation that she planned to the leave the nail shop and work at a factory in Yantai, Shandong province -- over 12 hours from Shenyang by road and ferry or longer without the ferry. She had already moved from her home in a village several hours away to work in Shenyang and was prepared to move even further to an unfamiliar city just based on the encouraging words of a friend who had done the same. In the young woman's eyes working in a factory would be an important step up in her life.

Her story in part resembled others I have heard when interviewing youth in China. It also seemed straight out of a book I had recently read - Factory Girls by Leslie T. Chang. If you enjoyed reading my earlier posts about Xiaoxin's first payday or first vegetarian lunch in Shanghai, you may also enjoy Chang's book. The stories she shares help capture the realities for many in China as they strive to improve their own and their family's lives.

Recently, I came across a video excerpt capturing some similar issues regarding factory life in China (H/T to Tricia Wang) . In the excerpt workers' express their hopes and their impressions of life at Foxconn -- the company which is the focus of much Western media attention due to its important role manufacturing goods for Apple, Sony, and many other well-known companies. The video also includes scenes reminiscent of many others I have seen that are more a part of everyday life for many in China than modern architectural marvels or high speed trains. While what is shown in the video is just the surface of some very deep issues and I do not believe all is as clear as it may seem, it helps show a side of China that is often missed or glossed over in typical news reports.

One young man in the video mentions that he chose Foxconn because its conditions are much better than other factories in China. I would not be surprised to discover that Foxconn's conditions are also much better than the factory where the young woman above may now be working.

You can watch the video here:

        Dreamwork China from Cineresie.

Mobile Phones That See Things a Little Differently

As I've mentioned before using Oppo as an example, some Chinese companies are attempting to establish distinct brands of mobiles phones that can directly compete in China with well-known global brands. Regardless, there still remain a large number of mobile phones available made by manufacturers who seem content to leverage the brand power of other companies. Phones with names such as Nckla (Nokia), iPheon (iPhone), Mctcrcla (Motorola), etc. are not hard to find (see here and here for some examples). I'll share a favorite of mine that serves as a striking example and illustrates some important points -- including how such phones could be useful to the companies of the brands they imitate.

Here is the front side of the flip-phone when closed:

The use of Apple's old advertising slogan "Think Different" and a large section of what appears to be Apple's logo present some potential trademark-infringement issues. I've seen other mobile phones with what are at the very least Apple-ish logos, so this came as no great surprise (see here for a related challenge Apple faces in China). However, it sports an overall unique design, and the phrase "I SEE THINGS ALITTLE DIFFERENTLY" [sic] captures a common theme I've encountered while speaking with youth in China: the desire to be different, but not too different (this is not unique to China, but there are nuanced differences from other countries).

With the Apple-like branding on the front, the other side of the phone provides a bit of a surprise:

The logo on it could be described as the Oppo logo with a few modifications. For reference, Oppo's logo can be seen in the advertisement I shared in my earlier post about Oppo's "Find Me" marketing campaign:

The modified Oppo logo is important for two reasons. One, it's representative of the challenges in China that fakes and imitations pose for Chinese companies. It's not just a problem for foreign companies. Two, it suggests that Oppo has reached a perceived level of success, whether in its brand recognition or in the quality of its logo, that has motivated others to "borrow" from it. As they say, imitation is flattery.

The inside of the phone also makes use of the variation on the Oppo logo:

Additionally, it's worth noting the dedicated button for QQ -- a popular service in China for social networking ,instant messaging, games, etc . -- and the fake diamonds in the key pad. Whether such design choices reflect a keen understanding of a segment of mobile phone consumers is a question well worth answering. For example, there are other indications that a little (or a lot of) "bling" on a phone is desired by many in China (a topic for a later post).

Regardless of any imitations, it's valuable for those in the mobile phone industry to consider the ways in which a product such as this one differs from their own. The phones are openly available, sometimes produced in a very quick cycle, and can be innovative in their own ways. They won't necessarily provide all of the answers and serve as just one piece of the research that should be conducted, but some insights may be discovered that will assist in delivering products that better meet the needs or desires of consumers in China (and potentially elsewhere as well). While companies such as Apple and Oppo may be frustrated by fakes and imitations, simply taking a close look at such phones may suggest opportunities for them, in their own way, to return the flattery.

"Fake" Apple Stores in China

A "real" Apple Store in Shanghai

Last July, an American living in China wrote on her blog, BirdAbroad, about a store in Kunming, Yunnan province that in many ways looked liked a genuine Apple Store despite the fact that it was not. While some people found the story so incredible that they pondered if it was a hoax, for some in China it came as no great surprise. "Fake" can be rather common in China. In fact, just in Kunming alone police later found 22 stores "unlawfully using Apple's brand and logo". But as noted by Josh Chin on The Wall Street Journal's "China Real Time Report", the store highlighted on BirdAbroad was a jewel specimen showing the lengths some would go.

I've come across a number of "Apple stores" in a variety of other cities in China. None of the stores were on the scale of the one in Kunming, but they help paint a broader picture of the environment in China for a brand such as Apple. In that spirit, I'll share some of what I've seen in 3 of the cities I've most recently visited. For a number of the examples I'll share, I discovered them purely by chance as I walked around exploring the cities. Others where found when I deliberately visited certain shopping districts, though not because I knew I'd find stores selling Apple products there. Especially given that I wasn't deliberately seeking out such stores, I suspect that what I'm sharing is just the tip of the iceberg for these cities. To be clear, for some of the examples I can't be absolutely sure anything improper is occurring. But based on what I know and the example of the store in Kunming, there is certainly much that should at least raise some eyebrows.

Before sharing any examples of questionable sales of Apple's products or uses of its trademarks, I want to clarify one issue that I've seen cause some confusion. In addition to its official Apple Stores in China, Apple also allows select businesses to be official Apple resellers. Some of these stores only sell Apple (and Apple-related) products. Even in Shanghai where three large Apple Stores currently operate there are also numerous authorized Apple resellers where one can purchase Apple products. Here is a photo of an authorized Apple Reseller at a large shopping mall in Guangzhou, Guangdong province that is similar to many others I have seen:

Sunion is a common Apple reseller in China. I'm sure this store is legitimate not only because of the "Premium Reseller" sign prominently displayed (which of course could be faked) but also because this specific store appears on Apple's list of authorized resellers in China. While official resellers often have some of the look and feel of an Apple Store, as referenced by Loretta Chao and Sue Feng (also on The Wall Street Journal's "China Real Time Report") there are guidelines they must follow. I'm not absolutely sure if this is part of the rules, but it's worth pointing out that the above store's name does not include "Apple" in it. Also, the employees wore shirts with "Sunion" written on them - not "Apple" or an Apple logo as was found in the now famous store in Kunming.

So, as far as I could tell all looked good there, as in many other authorized stores in China.

However, in the very same mall as the store above I saw a number of other stores also selling Apple products. None of them currently appear on Apple's list of authorized resellers. For example, there was this store with "iPhone 4" displayed where a store name is typically located:

An "iPhone 4" store

To provide some context, this section of the mall had numerous stores with their apparent "real" name posted in the same relative location above their main entrance. This store's business card did not indicate "iPhone 4" and instead provided a nondescript Chinese name for the business. The store sold a variety of Apple products such as iPhones and iPads. In addition to the Apple-like feel of the store, I also noticed PC monitors which did not appear to be Apple products with stickers of Apple's logo on them. You can see a hint of one in the photo.

Also of relevance is the logo in the red sign on the left side of the picture. It's China Unicom's logo for its WCDMA 3G Network. China Unicom has an agreement with Apple that allows it to sell iPhones. China Unicom also has an online list of dealers and currently this store is not listed there either. Even if the store should be on the list, its sales of non-iPhone products, the choice of the displayed store name, etc. remain issues.

There were other stores selling Apple products, many also with Apple-labeled PC monitors. And some stores weren't content with naming themselves "iPhone 4", but instead chose "iPhone 4S":

An "iPhone 4S" store

iPhone, iPhone 4S, and Android too

The use of "iPhone 4s" was particularly fascinating since the iPhone 4S hadn't been authorized for sale in China when I visited any of these stores. In fact, its launch date is this Friday, January 13. So, what's the source for these phones which shouldn't be available in Guangzhou?

I spoke to assistants at several stores and they all told me the same story: the phones are purchased from nearby Hong Kong and brought to Guangzhou. They were very open about the source of the phones and one shop even had a sign stating the Hong Kong origin of the iPhone 4S phones:

When I asked an assistant at the authorized Sunion store whether I could purchase an iPhone 4S she told me it would not be possible since they weren't available for sale in China. When I asked her why the other stores in the same mall already had them available she looked disgusted but refused to comment.

So, these examples are from just one mall and more exist there than what I've shared here. If you think that's a lot of iPhone stores to peruse in a single mall I can recommend you also visit the Starbucks a few levels below them (which I assume is genuine). Anyways, this is just a small taste of what you could likely find in Guangzhou. In other parts of the city I also noticed several stores with signs indicating they were authorized Apple resellers despite these stores not appearing on Apple's online list.

Is this store really authorized by Apple?

Maybe Apple's online list is not up to date. I did not contact Apple to check.

The examples from Guangzhou are striking, but it is one of China's more developed cities and may not be representative. What can be found in less prominent cities? Hengyang, Hunan province was another city I recently visited, and it provided a number of intriguing examples as well. Here's one store with an Apple logo prominently displayed:

It actually sold a broad variety of phones, but there was also a store nearby that focused on Apple products:

This store sold iPhone and HTC products:

Inside of the store

And this store claimed to be an authorized reseller:

Now here's the kicker. Apple doesn't list one single authorized retailer in all of Hengyang. China Unicom does list one authorized reseller in the area I visited, though the address doesn't appear to be for the store above.

After Hengyang I visited Chenzhou, also in Hunan province. I should note that like Hengyang when I visited Chenzhou I hadn't expected to be taking photographs of stores selling Apple products. However, one day I was walking down a street and saw these stores all in close proximity to each other:

Get the point? And like Hengyang, Apple lists no authorized stores in Chenzhou and none of these locations are currently listed on China Unicom's site. Again, some of the stores might simply be missing from the lists.

All of the stores above from Guangzhou, Hengyang, and Chenzhou were very much out in the open and in highly-trafficked areas. Never did anyone ask me to not take photographs. In fact, in several of the "iPhone" stores employees were happy when I asked if I could take their photos. While they might not have thought they were really working for Apple as in the case in Kunming, I didn't get the sense that they had a feeling there was anything they might not want to be fully public.

So, it doesn't appear that Kunming is the only city with "creative" uses of the Apple brand, and I feel pretty safe in saying that Guangzhou, Hengyang, and Chenzhou are not unique in joining Kunming in this respect. Again, I'm not saying I'm sure that everything I've shared here is "bad", but there is certainly much that seems amiss. Perhaps most clear is that the sales of the iPhone 4S should not have been occurring.

All of this presents a mixed case of good and bad news for Apple. At least if the stores are selling genuine Apple products (which is another issue to explore) then presumably Apple is at least profiting from the sales, even if not in the manner they would like. It's a very different problem than what Microsoft faces with many people in China using pirated versions of Windows.

So while there are numerous locations in China where one can legitimately purchase Apple's products, it appears there may be many more locations where sales are less than proper. Whatever benefits there may be for Apple in reducing the number of "fake" Apple stores in China, there would mostly likely exist direct benefits for the properly authorized (and presumably Chinese-owned) reseller stores.

And by the way, I've noticed some other retailers who are indeed very careful not to improperly use Apple's logo or its products' names:

On a sidewalk in Chenzhou

They just sell products that look remarkably like Apple's -- but for much cheaper of course.