China’s Shanzhai Companies Moving On From Counterfeit Imitation To Collaborative Innovation

Shanzhai used to refer to knock-off retail, and later end-consumer electronics, such as mobile phones of major brands like Nokia, Motorola and Ericson, often specifically designed for non-Western markets in China, South East Asia, South America, the Middle East and Africa. The ecosystem grew rapidly and by 2010, it was producing 200 million phones annually and was responsible for a quarter of the global mobile phone market. Since then, the shanzhai ecology has moved beyond cloning and enabled a wealth of iterative innovations including dual-SIM for frequent travelers to avoid roaming charges, seven-speaker phones for workers to listen to music at construction sites, and custom-designed phones for migrant populations unable to afford the latest smartphone.

 

 

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