China Begins Crackdown On Faux Apple Stores
Posted 07/25/2011 at 6:33am
| by J.R. Bookwalter
Well, that was fun while it lasted. Almost as soon as a wave of fake Chinese Apple Stores were discovered, authorities in the country have started putting them out of business -- and for once, Apple didn’t even have to lift one of their mighty fingers to make it happen.
Bloomberg is reporting that two out of five unauthorized Apple Stores in the city of Kunming, China have been shut down -- but ironically, not by Apple for trademark infringement, as you might expect. According to the Dushi Shibao newspaper, the two stores were closed for operating without business licenses, part of a greater probe into 300 electronics vendors throughout the city.
“Investigators also examined three other stores that used Apple’s logo without the company’s permission, though they were found to have operating permits,” the Dushi Shibao newspaper posted today on the Kunming government’s website.
Less than a week ago, a blog named BirdAbroad posted extensive photos of one of the faux Apple Stores in Kunming, which was soon discovered and reported on by every tech website across the globe (including MacLife.com, naturally).
“In areas outside of the biggest cities, it’s difficult to find Apple products, and there is strong demand,” explains Jim Tang, a technology analyst at Shenyin & Wanguo Securities Co. in Shanghai. “For a big country like China, Apple’s sales network doesn’t go far enough, and the company needs to expand.”
Those selling Apple products without authorization in China seem to agree. Yu Cheng is the owner of three stores in Kunming selling authentic Apple products without the company’s permission. While Yu’s stores have yet to be shut down, he claims they’re “doing Apple a favor” and not in violation of any Chinese laws. The businessman has even applied for permission to become an Apple Authorized Reseller in Kunming, although an Apple spokeswoman declined to comment on the matter.
While Apple has encouraged the lust for their products with only four stores in China thus far (as well as more than 900 authorized sales agents throughout the country), they may have made it too simple to copy the look and feel of their branded stores there.
“An Apple store is one of the easiest stores to do; that’s the genius of it,” explains Paul French, founder of market research company Access Asia. “It’s so simple. It’s just like a school chemistry lab.”
Despite reports that duped customers were outraged to discover the Apple Stores were a fake, many are eager to get their hands on the real merchandise, by any means necessary. “I don’t care if it’s authorized or not, as long as it’s the real product,” Li Yang, a 32-year-old shopper at one of Yu’s stores revealed. “I am a customer and I don’t want to wait until they open a store in Kunming.”
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(Image courtesy of Bloomberg)