Copycat Businesses

[zzaa09]

Yes it is definitely a Thai trait, amazing to behold.

It is not just a Thai trait. There are plenty of Western copycat busineses in Thailand

I agree. However, honestly, Thailand is famous as a hub of COPYING most everything.

The Japanese might have something to say about that...

[zzaa09]

edit

Edited May 14, 2012 by zzaa09

[bangkokrick]

My Thai sister in law opened a Thai whiskey bar outside her house. just a bar selling the strong multi coloured Thai whiskey and she was doing very well by local standards. Within a week...............

a free market would dictate that in this situation the one that did it best would triumph.

A friend of mine opened up a coffee and sandwich shop beside another enterprise that was offering a similar, but inferior service.

her prices were higher, the quality of her coffee and food were better, and, most importantly, her service was far superior in that she could serve 2-3 people in the time the competition took to serve 1.

she was able to do this because she was organised and actually took the time to observe the competition and determine where they were going wrong.

happy, well trained staff, an understanding of the product, customer relations, well-defined processes and quality control drove the competition out in a matter of months.

others have tried in the area and since failed.

I completely agree Nocturn and just for your info the others also faded away quickly.

[samran]

Samran,

copying someone's business idea is smart. copying their business idea and opening up across the street usually is not.

farang000999

No idea why you picked me out on that one, but a slew of economic theory and practice will tell you that, for the seller, opening up next door is usually is the rational thing to do.

www.uh.edu/engines/epi2692.htm

Edited May 14, 2012 by samran

[impulse]

OK, than take mobile phones and Computer. Half of them are western companies and copy from each other as much as the patent laws allow.

In my work with special hydraulic seals, all origins from 1 company and all others just copied, none of the copy cats have even one other product than the first company has. Not one single own development.

4 copy-cats in central Europe

1 or 2 in USA

1 in Australia

1 European with production in China

1 Chinese

1 Indian

so the majority of the copy cats are European.

There's no such thing as a product with only one Chinese source. If you know about 1, there are dozens (to thousands) you don't know about. I can assure you you have more copy cats of your product in China than Europe (and the rest of the world combined- barring, perhaps India) no matter what you make. Just lucky they don't know how to market to the world (yet).

....but a slew of economic theory and practice will tell you that, for the seller, opening up next door is usually is the rational thing to do.

www.uh.edu/engines/epi2692.htm

That's probably true- until you run up against the law of diminishing returns. I'm always kind of curious about the "numbers" for businesses I see. I see, for example, the hundreds of cell phone vendors in MBK and wonder how they survive, but I don't know the numbers for that type of business.

Edited May 14, 2012 by impulse

[BookMan]

Farang Milk Shakes. Great marketing!

Most important part of that definition is no ice, so you've got to pre-chill your milk or you end up having to use too much ice cream if you want it thick. (Aussies distinguish between a "thick shake" and an ordinary "milk shake", for us Yanks the latter is simply an abomination.

I make a mean one myself, haven't found good malt powder so use Milo in the chokshake.

But I'd have to charge at least B100 per to make more than 20% margin not counting labor, so don't think they'd fly in a low-rent location.

I do have a great idea for a street vendor business in hi-so and farang neighborhoods but it's too easy to copy and I might actually want to do it one day so lips are sealed 8-)

Would have to say the wife's milk shakes bear no resemblance to a real milk shake, Powder milk and powdered cream, some flavoring, sprinkles and jelly. The Thai kids love them and think they are the real deal. Jim

Its often about perception.

Look at Starbucks. They claim to sell coffee and people lap it up.

[h90]

OK, than take mobile phones and Computer. Half of them are western companies and copy from each other as much as the patent laws allow.

In my work with special hydraulic seals, all origins from 1 company and all others just copied, none of the copy cats have even one other product than the first company has. Not one single own development.

4 copy-cats in central Europe

1 or 2 in USA

1 in Australia

1 European with production in China

1 Chinese

1 Indian

so the majority of the copy cats are European.

There's no such thing as a product with only one Chinese source. If you know about 1, there are dozens (to thousands) you don't know about. I can assure you you have more copy cats of your product in China than Europe (and the rest of the world combined- barring, perhaps India) no matter what you make. Just lucky they don't know how to market to the world (yet).

....but a slew of economic theory and practice will tell you that, for the seller, opening up next door is usually is the rational thing to do.

www.uh.edu/engines/epi2692.htm

That's probably true- until you run up against the law of diminishing returns. I'm always kind of curious about the "numbers" for businesses I see. I see, for example, the hundreds of cell phone vendors in MBK and wonder how they survive, but I don't know the numbers for that type of business.

Now there is just one, the first one.....wait 3 years and there will be 10.....

[h90]

Wife put in a milk shake stand in front of the house, within a month there were 8 milk shake stands in the village [400 houses] Never hurt her profits as we make farang milk shakes,[ what ever they are] Kids come from miles around to have a farang milk shake. Jim

Farang Milk Shakes. Great marketing!

Maybe make it "Milk white skin Farang Milk Shakes" showing a snow white Farang face (Photoshop) might improve the effect.

[VocalNeal]

Two years ago someone opened up a coffee shop. We now have 11 coffee shops. With that many coffee shops how can anyone be making any money?

This is not always individual copying it is organized.. Asians realize there is no money to be made in a business that can easily be copied. So as has been said you have to raise the entrance fee not to be copied. So how to make money selling coffee. You sell the coffee business not simply the coffee. So the counters, coffee machine, all the cups, napkins, spoons et al.

I witnessed this in Indonesia. ne guy in the village opened a motorbike accessory shop the first one in the village. He was doing OK and within 18 months there were two more. One owned by the brother-in-law of a friend. When i asked why copy I was told the wholesaler came to town and told BIL, who already had a repair shop, he would give credit for the initial stock to help the guy start his own accessory business.

In Indonesia the only guy who makes much money is the Chinese wholesaler.

[tinfoilhat]

It's a very common thing in Asia I think. My boyfriend opened his bar on a little street where there were no bars and he was doing very well. Now one year later there are NINE bars on that little street and people aren't making as much money. Profits have slumped almost 50% - Kinda annoying.

i think the thing commonly overlooked when talking about copy cat businesses is that they often hold the land or the lease already and it is doing something else, or perhaps nothing.

so, once a successful model is spotted, it is often easier and less expensive for the copycat to take a stab at it. they actually have less to lose than the pioneer.

[BigJohnnyBKK]

And keep in mind that very low margins may still yield the 7-10K the seller needs to live, beats working in a factory for not much more.

[Furbie]

It’s just like Homer when he became Mr. Plow. Within a week, Barney became the Plow King. Homer's reaction - you stole my idea!

But in all seriousness – organizing things next to each other was the way it was done in the West for a loooong time – streets of just cobblers, bakers, etc. All very medieval.

[brit1984]

Many small business owners in Thailand just want to make a few extra baht; they often aren't focused on, or even thinking about, getting rich. Back in the West, setting up a business requires considerable effort on the part of the entrepreneur; here it is very easy so even lazy-minded people (which make up a large proportion of all societies) can be business owners.

[Heng]

In Indonesia the only guy who makes much money is the Chinese wholesaler.

Same tune here. Although I'd say Chinese as well as Indian wholesalers and financiers.

:-)

[jamescollister]

Many small business owners in Thailand just want to make a few extra baht; they often aren't focused on, or even thinking about, getting rich. Back in the West, setting up a business requires considerable effort on the part of the entrepreneur; here it is very easy so even lazy-minded people (which make up a large proportion of all societies) can be business owners.

Free enterprise, a thing that has died in most of the west. Wife's milk shake bar cost 6000 Baht to set up and makes 300 to 400 profit most days. You would simply not be allowed to use your home to sell milk shakes without local planning approval, health certificates, food handling licenses and of course the tax man wants his cut. Jim

[DanielToddGilbert]

Businesses are copied here because the copier is as thick as shit.

[Heng]

Are you Professor Gilbert (psych) from Harvard?

[BigJohnnyBKK]

It’s just like Homer when he became Mr. Plow. Within a week, Barney became the Plow King. Homer's reaction - you stole my idea!

But in all seriousness – organizing things next to each other was the way it was done in the West for a loooong time – streets of just cobblers, bakers, etc. All very medieval.

Don't recall that from the Iliad nor the Odyssey?

Free enterprise, a thing that has died in most of the west. Wife's milk shake bar cost 6000 Baht to set up and makes 300 to 400 profit most days. You would simply not be allowed to use your home to sell milk shakes without local planning approval, health certificates, food handling licenses and of course the tax man wants his cut. Jim

That's no less free enterprise, just a higher cost of entry. Good reasons behind most of those laws, at least in urban areas how many people here complain of unsanitary conditions, can't walk on the footpaths etc.

Personally I prefer it this way, but hate to imagine what things would be like back home if they let everyone run riot. At least here the BIB mafia keeps things relatively orderly, and the people are pretty decent to start with.

[brit1984]

Businesses are copied here because the copier is as thick as shit.

For future reference, when copying text from academic research papers, it is considered good practice to provide a citation for your source.

[Berkshire]

Samran,

copying someone's business idea is smart. copying their business idea and opening up across the street usually is not.

farang000999

No idea why you picked me out on that one, but a slew of economic theory and practice will tell you that, for the seller, opening up next door is usually is the rational thing to do.

www.uh.edu/engines/epi2692.htm

The title of this thread is a little silly. Has anyone here actually run a business? Freakin business 101--do you invest your life savings in an unproven business idea, or invest in another one that has already demonstrated that it works? Duh. And if you manage to come up with an innovative idea and set up shop anywhere on this planet, you can bet your ass that it will be copied. Another duh. Only if the barriers-to-entry are high will you avoid this pitfall.

But nevermind what Japan has been doing for decades (re copycat businesses or ideas), how about the most profitable company on the planet? What does Apple do? They sure as sh*t don't come up with new product ideas (unless you go all the way back to their PC upbringing). Their consumer electronics business are all copycat ideas. They just made it better.

[arthurwait]

At least the Thais are good at copying businesses. All those Farangs I meet who are here busy making the next EBay, Facebook, My space are still struggling to afford a third beer a night.

Edited May 15, 2012 by arthurwait

[Berkshire]

At least the Thais are good at copying businesses. All those Farangs I meet who are here busy making the next EBay, Facebook, My space are still struggling to afford a third beer a night.

It seems like every young, unemployed farang in Thailand are doing something on the internet. (if they're not teaching English) Most are not doing well. Talk about copycat...

[Shot]

The title of this thread is a little silly. Has anyone here actually run a business? Freakin business 101--do you invest your life savings in an unproven business idea, or invest in another one that has already demonstrated that it works? Duh. And if you manage to come up with an innovative idea and set up shop anywhere on this planet, you can bet your ass that it will be copied. Another duh. Only if the barriers-to-entry are high will you avoid this pitfall.

But nevermind what Japan has been doing for decades (re copycat businesses or ideas), how about the most profitable company on the planet? What does Apple do? They sure as sh*t don't come up with new product ideas (unless you go all the way back to their PC upbringing). Their consumer electronics business are all copycat ideas. They just made it better.

[ShodomonRules]

Never one to shy away from a little bashing, however, there's a town in Texas called Fredericksburg, like a little hillbilly Rodeo Drive, all expensive rent ($5-7000 for a small shop on Main Street.)

The place is packed on weekends. Has been for over a decade now. The two busy places are the microbrewery (including take-out beer for strolling) and the ice cream shop. Busy in that they actually make sales.

The forty-some antique shops rarely make a sale. But when one goes out of business, there's another sucker waiting in line. Amazing how no one considers the mass of competition and, since the rich tourists are all from out of town, how relatively difficult it is to fit an armoire in a BMW.

Not just Thailand, folks.

Edited May 15, 2012 by ShodomonRules

[Heng]

Ah yes, Fred-burg. More like a little bit of Germany in American (and Texas).

[farang000999]

It is only a good idea to open the same business next door if there is a large enough market share to do so. From my observation, when I see these types of copycats in Thailand they seem to rotate going out of business. You have shops 1,2,3,4,5,6,7 all decide to line up in a row when there is not enough market share to sustain them all. Then every 6 months one of them gives up and closes and another replaces them. This is particularly noticable in tourist markets where Thais seem to have very little creativity.

[farang000999]

I got it! I got it! I need to open a fish foot massage. There are already 6,000,000 of them they must be making a killing! Hey, they don't even have any customers inside but they are still open! Just goes to show you what a great business it must be! You can't lose. Oh look, Pom's Fish Foot Massage just closed down. What a perfect opportunity to stake my claim in this exciting new industry.

[Mosha]

Wife put in a milk shake stand in front of the house, within a month there were 8 milk shake stands in the village [400 houses] Never hurt her profits as we make farang milk shakes,[ what ever they are] Kids come from miles around to have a farang milk shake. Jim

Jim, now you have me worried. Latex looks like milk

[brit1984]

I got it! I got it! I need to open a fish foot massage. There are already 6,000,000 of them they must be making a killing! Hey, they don't even have any customers inside but they are still open! Just goes to show you what a great business it must be! You can't lose. Oh look, Pom's Fish Foot Massage just closed down. What a perfect opportunity to stake my claim in this exciting new industry.

I don't see any reason you couldn't make it work; you are not planning to sell a commodity in an open market after all; you just need to differentiate your service offering and/or market your shop more effectively

For example, a quick search on google reveals that not 1 of those 6,000,000 fish foot massage shops you refer to has a site that is well-optimised for search engines

It is easy to make a profit without an original idea but very difficult to make a profit without good execution

[jamescollister]

Wife put in a milk shake stand in front of the house, within a month there were 8 milk shake stands in the village [400 houses] Never hurt her profits as we make farang milk shakes,[ what ever they are] Kids come from miles around to have a farang milk shake. Jim

Jim, now you have me worried. Latex looks like milk

That might make them a bit chewy. Jim