Don’t Let Squatters Steal Your Sales

Squatting is a very real problem for brands in China. Unauthorized sellers can squat on your traffic, IP, trademark, exclusive rights…all sorts of things.

Over the past several years I have seen countless versions of this. One example was an American personal care brand that I met with recently. They failed to do the basic research to understand how consumers were searching for them online in China. When consumers searched, there were 4 characters they were consistently using to identify the brand.

Instead of doing local research, they hired a fancy agency and a law firm in New York to actually design a name for the product…without realizing they were already popular in China. It’s extremely hard to change the way people think about your brand. For example, Coke is Coke. So, when they launched their Tmall store with a fancy new “Chinese” brand name, they got no traffic or revenue. They of course wondered what was going on.

So, when we came in the first thing we noticed was they didn’t own the rights to their own name. The distributor who registered the 4 characters Chinese consumers were searching can keep them registered forever.  Don’t let it happen to you. Protect yourself from squatters…get your trademarks, do the research.

#China #Tmall #Taobao #IP #Trademarks #Alibaba #Registration #China