Counterfeit Bearings in Shanghai; a Growing Problem, (Tokyo)

Customers in China are suffering from the increasing number of counterfeit Japanese bearing introduced in the country. NACHI-Fujikoshi (NACHI) working in cooperation with the Japan External Trade Organization (JETRO) and their activities to safeguard the intellectual property of Japanese firms, conducted research in the Chinese bearing market regarding the distribution of counterfeit products sold in Shanghai. NACHI is an active member in the intellectual property protection activities of JETRO and is committed to the eradication of counterfeit bearings in China.
Recently a prominent market has developed throughout Shanghai for counterfeit bearings and field research was conducted by JETRO to assess the extent of the practice. According to the survey, 29 stores, in a population of 40 stores investigated, sold counterfeit bearings. In 28 of the stores there was a mixture of genuine and counterfeit products sold. Two shops selling genuine products over the counter were well aware of the channels of supply of forged bearings. It is estimated that two-thirds of all shops in Shanghai were involved in selling counterfeit goods.
The research uncovered the existence of a complicated network of companies working together to manufacture, pack, transport and export the counterfeit products. In a specific example, a sale from a shop in Shanghai placed an order to a company in Shandong that acted as the coordinator. This company sent a production order for non-branded bearings to a company in Zhejiang province which made and shipped the bearings to a Shandong company for marking and labeling. The bearings returned to Zhejiang where they were place in forged packaging to resemble the genuine article and shipped to the end customer. Delivery for this complicated procedure was surprisingly fast.
The report called for more detailed research and understanding of the supply chain and the companies involved. Cooperation, relationship building and strengthening of law enforcement agency activities across multiple provincial governments is needed in order to crackdown and stop the high degree of counterfeit practices in the region and to ensure customers receive genuine products. NACHI will continue to work with JETRO and the World Bearing Association (WBA) in this initiative.