It’s called shanzai, and it’s a hot topic in China these days. It should also be a hot topic amongst those in the know within the wholesale network circle as well, because it’s something that affects everything from manufacturers… to distributors… to the buyers who shell out for goods that we bring in from parts unknown.

The word itself sounds a lot like Shanghai, the international city with a dubious reputation of its own… but that’s where the similarities end. Shanzai (山寨) – or ‘mountain stronghold’ in Chinese – has become something of a phenomenon, as manufacturers with the means to replicate name-brand goods have taken the art of making fakes to a whole new level. Many Chinese are claiming that it satisfies the need for a sort of social commentary that pokes fun at the lifestyles of the rich and infamous, and gives the common man something to smile about. In spite of all the news about China’s rapid rise to super stardom, the fact is that most people are quite poor, and there is an ever-growing gap between the haves and the have-nots that is making the need for some lighthearted humor very necessary. I don’t suppose I need to go into detail about the fact that there are various levels of social unrest making headlines these days, nor expound upon stories of a certain political party that is under tremendous pressure to keep a lid on things, in spite of its own major shortcomings… but let me just tell you – based on what I’ve personally seen in the past three years – that the average citizen is not really enjoying the fruits of double-digit GDP growth from the recent ‘economic miracle’ that everybody keeps talking about. Shanzai has become an expression of Chinese cleverness and ingenuity for the average guy, and while it was once frowned upon and snubbed as an attempt to do things cheaply and with inferior quality… times have changed.

“The shanzhai culture as a celebration of the DIY [do it yourself] spirit or as a parody to mainstream culture can add fun to our daily lives, however, we should remain vigilant against it as a justification for rip-off products.”

(Xinhua)

While there has always been a torrent of counterfeit goods coming from every imaginable source, there has never been such a keen interest in developing the technology to a sophisticated level of hacked-and-stacked merchandise that almost seems to be part of an elaborate joke at first glance. Take the much-celebrated Rolex A699 mobile phone, a sort of hybrid between a mobile phone, and… a Rolex watch.

This clamshell device not only looks an awful lot like the SAMSUNG 699 (hmmm…), but it also sports a positively fabulous Rolex-faced dial with gold trim on the lid. Of course, there is also a cloyingly discreet Rolex logo etched onto the body, and a host of additional goodies are onboard as well; FM receiver, camera, and dual SIM capability.

I swear I’m not making this up.

Another example of the tech-trickery that abounds is the ARM-based Apple lookalike that doesn’t even run OSX. This thing looks like an Apple, kinda feels like an Apple… but once you open it, you’ll find the Windows hot key on the lower left corner of the keyboard, and discover that it only runs Windows CE. Pleeez tell me this item hasn’t sold out…

While it’s funny to some, there are those (besides Apple, SAMSUNG, Rolex, and Microsoft) who aren’t having such a hearty laugh. This creates quite a headache for any companies that are trying to keep their market share, and presents some rather painful challenges to the companies that haven’t gotten there yet, but would like to do it the honest way.

“The Taiwanese National Communications Commission has kicked off a new initiative that will fine anyone trying to bring Chinese counterfeit phones into the country. Any resident of Taiwan risks a fine of up to 300,000 Taiwanese dollars (about $9,055) for bringing in five or more “shanzai phones,” as they’re known to locals, into the country. Taiwan will also levy the fine against anyone importing more than two “shanzai” cellphones through mail.”

(IntoMobile News)

As a Wholesaler, it’s important to follow this kind of news, because there’s a lot of hard times coming down the pipeline for us all if this results in import regulations and policies that are cost-prohibitive or needlessly arduous for the ones doing business. Being informed is the best prevention, and there are a lot of ways to research the topic for yourself, if you’re curious about how far some of the companies making rip-offs will go. Some are calling the shanzai craze a sham, and accusing those who are laughing along of encouraging counterfeiting, and promoting copyright infringement.

Of course, all of this begs the question: if the Chinese are capable of producing goofy lookalikes and rip-offs of branded merchandise… why don’t they just up the ante, and start cranking out world-class goods of their own? It would certainly come at a time when the world need some fresh talent in the pool, and it would perhaps create opportunities for the wholesaler and retailer to secure deals that would blow the doors off of the competition.

Meanwhile, we’ll all just have to wait and see. I’ll keep my eyes open for some more interesting fakes, but for now I saved the best in my cache for last… the Presidentially-endorsed Blockberry phone!