Summary of Key Points
This article reveals the “hidden aspects” behind well-known brands through several real-life examples: The brands we are familiar with may not be directly operated by their original companies (they might be licensed to third parties), could be impersonated by counterfeit versions, or face confusion due to trademark disputes, representing just the tip of a much larger commercial empire. These phenomena highlight that there is often a significant discrepancy between the brand logo we see and its actual owner, operator, and scope of business.
Detailed Explanation
1. The Brand You Buy May Be Being Operated by Another Company
Many brands license their non-core businesses to other companies for management. For example, Senma operates Puma’s children’s clothing line, and the sender of Puma products sold on Pinduoduo is Senma, as Senma has obtained the licensing rights. The situation with MLB (Major League Baseball) is even more complex: There were two authorized partners in China—Shanghai Aidong, which operated physical baseball stores, and F&F from South Korea, which focused on streetwear styles. Although the products looked different, they were both genuine. Brands do this to save resources by outsourcing non-core businesses such as children’s clothing and international markets to specialized companies while focusing on their main products. However, licenses are temporary; for instance, Senma’s license to operate Arthur’s products expires in 2026, and the “brand” you buy could change owners at any time.
2. Counterfeit Brands: Exploiting Well-Known Names to Target Lower-End Markets
Some businesses profit by impersonating well-known brands. Take the washing machine brand Qishuai as an example; it is a legitimate Chinese brand and a CBA sponsor, but it secretly produced products under the names “Hong Kong Siemens” and “Shanghai Siemens,” using the trademark “SIMBMC” (similar to Siemens’ SIEMENS). Consumers, attracted by the name “Siemens,” purchased thousands of counterfeit units. In 2015, Siemens sued for compensation, and the court awarded 100 million yuan based on Qishuai’s claimed annual revenue of 1.5 billion yuan—its own exaggerated figure became the basis for the judgment. Qishuai also manufactured products for fake brands like “Hainan Sanyo” and “Samsung Shanghai.”
3. Trademark Disputes: Two “Genuine” Brands in Legal Battle
When MUJI (Japanese brand) entered China in 1999, it failed to register the trademark for “Class 24 textiles,” which was later acquired by Beijing Miantian. Both parties claimed legitimacy to use the trademark in their respective areas of business. In 2015, Miantian sued MUJI for using its trademark in textiles, and MUJI paid 500,000 yuan; in 2019, MUJI sued Miantian for overstepping its rights, and Miantian paid the same amount. They also issued damaging statements about each other, resulting in additional fines of 200,000 and 400,000 yuan respectively. Today, both brands are thriving—MUJI has over 410 stores, and Miantian has more than 200 physical and 300 online stores—making it impossible for consumers to distinguish between the “genuine” ones.
4. The True Scope of a Brand: Much More Than What You See
Many brands are much larger than they appear. Take Anta as another example: It is often perceived as a domestic sports shoe brand, but in 2009 it took over FILA’s operations in China and transformed the struggling brand into a luxury fashion brand. In 2019, it acquired Finnish company Aramex (the parent of Salomon), elevating Salomon from a professional outdoor brand to a “luxury sports” brand with stores in prestigious locations like SKP and LV. Nestlé is another example: While known for instant coffee, it also offers capsule coffee, premium Blue Bottle coffee, and has acquired the rights to sell products outside Starbucks’ stores. Additionally, it operates infant formula, pet food, and the “Meiji” series for the catering industry (products like Meiji shrimp and beef used in restaurants). The Nestlé coffee you drink is just a small part of its extensive business empire.
These cases illustrate that when purchasing products, one should not rely solely on the logo but also pay attention to the company behind it, trademark ownership, and other details to avoid pitfalls. They also reveal common business strategies such as licensing, acquisitions, and diversification, which are often unknown to consumers.