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It's naive to think a good idea won't be copied if not outright stolen lock, stock and barrel in this day and age. If it's not the kid giving away your music through a bit torrent, it's a reverse engineer taking apart your secrets for a competitor or someone simply selling the same thing in cheaper package (can anyone say 'Snuggie'?).
Which came first? Better question, did the customer really care either way?
And here's the painful part: free labor. At least it seems free when they're making it in China. I've personally seen many final goods manufactured, packaged and shipped half-way around the world for less than what you could buy the materials to make the product for locally. Think about that: a store selling a wooden chair to you for less than the cost of wood you might buy to make yourself one. This is a disheartening reality to many manufacturers and business start-ups.
When I was younger, 'Made in China' was a joke; these days even my little daughter wonders what isn't made in China. And let's face it, given the right set of blueprints, China can make incredible stuff.
Yep, that too.
So what do small or local companies do? Do we just go along and have everything made in China while ignoring our local economy? Do we patent every little screw, nail and scrap while keeping expensive legal teams on retainer, ready to squash every copycat that might spring up? How do we protect ourselves from the thieves and hacks?
Two words:
LED...
ZEPPELIN
I know what you're thinking.
How can a popular 70's English Heavy Metal band protect my product from copyright infringement and counterfieters?
Let's look at Led Zep for a moment, or should I say, what they make.
Are they generic?
No. It feels odd to even call them 'Heavy Metal' or classify them in any genre because their sound is so unique. No one sounds like Robert Plant; no one sounds like Robert Plant and Jimmy Page; and no one sounds like all four of them, onstage, whomping. Anyone who tries to sound like them will remind you of them- and if you've heard them you know... there's nothing like the real Led Zeppelin.
It is this uniqueness which protects their brand the way Coca-Cola's red can and flavor protects theirs. They don't have to shout the loudest. They don't have to hire a team of lawyers to protect themselves from 'Iron Zeppelin'; their signature is their shield.
One might point out that their product isn't just their music; it's the delivery of that music (Records, shirts, CD's and MP3's, etc.), and though they're unique, that doesn't stop one from copying or stealing those things.
I completely agree. And the answer to that problem is to not rest on your laurels.
Had Led Zeppelin made only one album in this age and called it a career, they'd be broke. One anything is rarely enough product to survive. What works is a company that can make continued improvements to a product that copycats have to race to keep up with (iPhone was a good example) or something so unique it can't be copied (again, see Coca-cola).
One of these things, is not like the other...
But what about a service business?
I've learned that every business is a service business, some just don't have tangible goods associated with them.
And there's another area where the local business can really shine.
Look, I'm like anyone; I love to get stuff in the mail. I love being able to order stuff through Amazon without any hassles or even having to leave my home when I'm not up for it, but what about those stores you go into and they know you? The ones who, you always know, will fix things if anything's wrong? There is real value in that.
On my end of things, I could outsource some portions of my product to China but here's the thing- what guarantees do I have if things go wrong? If they do fix the problem, how long will it take? How well do I know that guy half way around the world, or the guy working underneath him?
Here's a story I read that really caught me off guard.
There's a scam run through some of the companies on the Alibaba site. Mind you, this isn't the site's fault, China's fault or any of the many reputable people who sell goods through the site- it's just what can and has happened in some instances.
Someone (We'll say 'Jim's Small Business' or JSB for short) decides to outsource and finds a business through Alibaba to work with- a completely legitimate business that is more than capable of making the product they say they make. And the Chinese company is actively making that product for many buyers overseas with no complaints.
JBS orders 15,000 units and the company is happy to make them. JBS sends the check. The representative who spoke with JBS takes the check, puts it in his personal account, cashes it and never tells his company about it.
I know, embezzlement can come from a faceless factory overseas that you've contracted through an internet site... unbelievable!!!
Of course, any company or person can embezzle, but when they do so locally your odds of getting some kind of restitution might be better than if it's through a faceless employee on the other side of the world.
China isn't the problem or even a problem; the problem is unscrupulous business people. But, on the other hand, China isn't always the solution. A deal is only a deal when one of two similar items, costs less. Local might cost more, just like buying a real can of Coke costs a little more than Sam's Choice, but sometimes the real thing is worth it. Sometimes counterfeits and copies won't cut it. Sometimes all you need are uniqueness, persistent improvement and unbeatable service.
-Chris
www.delacroixleather.com
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