Article
Wu Dong, Partner, M&A Law Firm
If what Da Fu claimed
is true, then we can say that the French have infringed Da Fu's trademark and
intellectual property. Da Fu may sue them in the court where the pirated
trademark was registered and appeal to cancel it in Europe.
Liu said French Feiyue had come to Da Fu in late 2008, offering to pay it 500 to 600 thousand yuan a year to settle the dispute. But Da Fu wounld't reconcile unless the French acknowledged Da Fu's ownership of the Feiyue brand, both in China and abroad.
Liu Wangsheng, Manager, Shanghai Da Fu Rubber Company
Our request is simple. The French must stop using the Feiyue brand in
Europe. Or they should put Da Fu on the owner's list there. This is a
pre-requisite for any reconciliation. If the French refuse to do so, we will
take them to court.
Although Da Fu is likely to win back its legal right, it may lose financially. Wu said overseas lawsuits are often costly and time consuming. Wangzhihe, for instance, spent 10 thousand euros and 2 years to retrieve its trademark. Feiyue could be a lot more complicated.
Wu Dong, Partner, M&A Law Firm
In the Wangzhihe
case, the German company simply copied the Chinese brand. But Feiyue is special
in a way that the French blended their own designs into the sneakers. That's a
defense.
Da Fu said the negotiation with the French is stuck on the ownership of the Feiyue brand in overseas markets. If it fails, Da Fu will be facing a dilemma. Taking the French to court could wipe off a big chunk of its one-million yuan in revenue for 2008. But doing nothing with the infringement would mean a loss of sales leverage in Europe and the U.S., where French Feiyue has cut its teeth.
While DaFu is determined to claim its legal rights, lawyers advise Chinese companies to register their brands in target markets in a timely manner to avoid any potential infringement. On the other hand, owning a time-honored brand is not enough. Legal contention aside, Chinese manufacturers involved in the Feiyue case need to learn from their French counterpart, who's sensitive to fashion and savvy in marketing.
French Feiyue said its team "intuitively follows its day-to-day fancies to enhance the Feiyue range," with memories, images, impressions and moods" picked up along their travels meshed into the products and the brand's identity. While the French believes in design and transformations, Chinese manufacturers believes in low price and good quality.
Liu Wangsheng, Manager, Shanghai Da Fu Rubber Company
Our customer base is mainly rural people, who can't afford much and
don't care a lot about fashion.
French Feiyue, has over the past three years, been re-inventing the cultural value of its brand. Instead of directly promoting its shoes, it's been organizing artistic events around the globe, such as photo shows and night parties.
Dr. Lu Xiao, Branding Expert, Fudan University
Many
Chinese manufacturers believe if one design works well for a period of time,
it's going to be popular forever. So they'd stick to it and try to reduce the
cost. But as we know consumer tastes keep changing.
Although local shoemakers lag behind their western counterparts in design, some are trying to catch up. Warrior, for instance, is looking more toward fashion instead of just function. But experts say marketing expertise is also indispensable to the success of a brand. And French Feiyue definitely has an edge over its Chinese counterparts.
Irene Cai, Manager, A.T.Kearney
They used all those
fashion magazines like Elle, like Cosmopolitan to promote their brands and used
stars to promote the brand. I think they also leveraged existing channels and
also online shops to promote the products.
French Feiyue has a number of boutique stores worldwide. In contrast, Chinese manufacturers have never opened a single store abroad selling Feiyue or Warrior sneakers. Even in China, their sales model is largely wholesale.
Gui Chenggang, Executive Dir, Shanghai Warrior Shoes Co
We'd invest more efforts in retailing. We opened our first boutique last
year and has been expanding our retail network. The closer you stay to the
customers, the easier it becomes to upgrade your brand image. We'd like to
present an image of being healthy, trendy and pretty to our customers.
The owner of the Feiyue brands continues to struggle with the French. Regardless of the result, experts warn that revitalized local brands could return to obscurity anytime, if they stay where they are. Keeping up on the latest trends and adding new excitement to the product is just as important as protecting the brand.