Shenzhen in South China is notorious for its copycat manufacturers’ speed in producing Chinese knockoffs. These companies jump onto new product designs, often dumb them down, and develop them extremely fast. Sometimes, their version hits the market before the “real” product even ships.
Understandably, startups and companies launching innovative products are nervous about these Shenzhen copycats. And they’re right to be. The risk of being copied is real, as the following examples clearly show.
The Copycat Crisis: Two Real-World Examples
Over the past ten years, we’ve seen Chinese knockoffs devastate hardware startups. Two companies we’re familiar with launched brilliant, unique products on crowdfunding platforms—only to be undercut by inferior China copycats that appeared within months. Sadly, both of those startups ultimately went bankrupt (they were both our clients at one time or another).
Case 1: Alter RFS
The Alter RFS (Rapid Filter System) gained real momentum on Kickstarter and Indiegogo. It featured CNC-machined parts and a clever filter-swapping mechanism, appealing to photographers who valued quality and speed.
But it was copied by a known Shenzhen-based brand. This brand’s RFS looked nearly identical, but was made from die-cast parts; cheaper to produce, but with a rougher finish.
YouTubers began comparing the two, and some consumers opted for the cheaper version. Alter couldn’t compete. The copycat killed their business.
One lesson here is that coming up with a product category name such as “rapid filter system (RFS)” makes it easy for a competitor to position themselves clearly in the same category as yours. Using your own company brand name may be better.
Case 2: Lumapod
Another example: Lumapod, a fast-deploying tripod with a smart, cable-stabilized design. Their Kickstarter was a success, and the photography community was excited.
But not long after, a Chinese competitor launched a simplified tripod that closely mimicked Lumapod’s styling, right down to the 3 folding feet and the color accents. However, it lacked the internal cables and a few other details that gave Lumapod its stability and made its design much more complex.
Once again, the cheaper knockoff flooded the market. Lumapod could not even launch its product to the market.
Why Crowdfunding Attracts Copycats
Both Alter RFS and Lumapod launched through crowdfunding campaigns, which is a smart way to gain early adopters and finance the next steps such as final DFM and tooling fabrication. But it comes with a hidden cost: exposure. When you go live on Kickstarter or Indiegogo, you’re putting everything in the open: product images, specs, features, videos, even pricing. And every potential competitor can see if your product seems to be a hit in the marketplace.
Any enterprising Chinese manufacturer can review your campaign and decide: “Let’s make this ourselves, simpler and cheaper.”
This is a serious threat for anyone using crowdfunding.
What Can You Do To Avoid Being Copied?
Unfortunately, Chinese knockoffs are not going away. But there are ways to reduce your risk:
– Speed
If you know for sure you are 2 months away from high-volume production when you launch your campaign, nobody can be on the market before you. So, when you launch and hopefully you get attention from journalists and influencers, there is no product they can compare yours to. At least nobody steals that buzz from you.How to ensure that? Do proper DFM, get tooling fabricated, and work with an experienced contract manufacturer.
– Avoid Very Public (Online) Disclosure
Consider selling to brick & mortar stores. There is no online exposure. Much fewer potential competitors will notice your product there, and it will be slower. Note: selling on Amazon is more likely to attract Chinese manufacturers’ attention, since they have access to software that estimate the monthly sales of every product sold on that platform.
– File for a Patent
If your product has a truly unique design or function, a patent filed early and in your key market(s) can provide legal leverage. While enforcement can be tough and expensive, having IP protection is better than having none.
Having written this, we generally suggest you validate there is demand for your product, if possible by getting many people to deposit at least a little amount of money as a way to reserve the option to buy your product once it launches, before you pay for patent registration.
– Out-market the Copycats
Even if you’re copied, you can still win. Focus on brand building, superior marketing, customer service, and being first to market with real inventory. Your advantage is authenticity; theirs is price.
– Think of your product 2.0 version
Keep innovating so that copycats are always running behind you. If you are stationery, you are an easy target.
You can learn more strategies in our IP protection in China guide, including how to secure your designs during development and manufacturing.
Conclusion
Shenzhen copycats are fast, well-connected, and aggressive. They don’t need to innovate; they just observe, simplify, and mass-produce. This is how China’s copycat culture operates, especially in the world of hardware.
They are all the more scary that they sometimes also improve on a concept in their own way. Look at all the amazing electric vehicles coming out of China’s factories these days.
If you’re planning to launch a new product, especially through crowdfunding, you must consider the risk of being copied. Chinese knockoffs can appear within weeks of your campaign launch and can easily outpace you to market if you’re not prepared.
Success isn’t just about having a great product. It’s about protecting it and knowing who might be watching.
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