It seems an interesting and a unique case. I think the problem here is that there are multiple countries involved and the laws in one may not be applicable to the laws in another. For instance, laws in US may give protection to Apple with regards to the copyrights on it's stores and that it can legally sue anyone who tries to fake an Apple store. However, do the same laws apply to a business in China? Perhaps what the Chinese business is doing is legal by Chinese laws. How do you resolve the issue then?
This is actually not a new phenomenon. In 2006, the NYTimes ran a story about the same exact thing happening to NEC. My bet is that this is a lot more common in one degree or another than many realize.
Barbara, No wonder such things can always happens in China. They are experts in making ditto products and it’s more or less like a government sponsored program. So government won’t take much action against such fake things.
I've seen many products from china which looks exactly like the apple ones. This is next standard they are into by setting up the stores. Apple should come up with new plans in eradicating these smuggles.
The counterfeit store sounds crazy but this isn't an easy thing. How they were able to procure apple products to sell. Do they have fake licenses and apple also couldn't find it out before supplying any products to them?
To resolve this issue, the supply chain need to establish a common system of tracking the products. Franchised, non franchised or broker are involved and they all have a role to play, they are to be able to verify the original source of the products, did it come from the manufacturer, from a franchise distributor or from another broker.
In my opinion the focus has to be whether the product being sold is genuine or not. If the product is genuine then " who sells it " should not matter. The authorised distributors will naturally be able to offer a genuine product at the best price compared to an independent distributor. The key for all the manufacturers is to provide the traceability of their product. If suppose I as an individual buy a product and want to verify whether it is genuine or not, I should be able to approach a factory outlet which could tell me whether it is genuine or a counterfeit ( by looking at the batch number or serial number information on the product.)
As stated in a few previous posts, there needs to be some sort of tracking and registration to help curb counterfeits and ensure buyers are getting legitimate products. Everybody needs to be involved in this process in order to help curb counterfeiting. As for Apple stores in China, seeing how Apple products are some of the most sought after and counterfeited products, Apple and the Chinese government need to come up with a plan to stop these fake stores and prevent more from popping up.
"As long as the product is authentic, does is matter which store you buy it from? I can't answer that question, but I'd like to hear from readers: What is that "franchised" label worth to you?"
Franchisers have different scope from the authorized company or factory and the total goal for them even if the follow the strict regulations is to have profits as much, they can.
From the other hand, I have seen companies that they implement franchise policy to grow up their network, but they are asking demanding requirements from the Franchisers making their business life very difficult.
I've seen this story a couple of times now and one thing that isn't clear is whether the products are genuine Apple products or knock-offs. If they are really Apple products, it is interesting that there is a shortage for some Apple products through legitamate sources; are these some of those products? If they are, there must be a leak in the Apple supply chain to allow these stores to get their inventory. In any acse Apple needs to look closely at their partners to see if they are on the up and up.
As long as the product is authentic, does is matter which store you buy it from?
The only advantage of buying a product from authorized stores is the product by default is authentic. But if by some means other vendors also guarantee that the products they are selling are authentic then it shouldn't matter where you buy that product from.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.