Posted on 08/03/2004 7:14:02 AM PDT by Born Conservative
Counterfeits bitting into bottom line of Pennsylvania company with legendary product.
The Associated Press BRADFORD, Pa.- They are as American as apple pie, as distinct as a Harley-Davidson and as original as Elvis. But increasingly, cheap knockoffs of the Zippo lighter are being made in Chinese factories that can rival the output of the Pennsylvania company itself.
The problem is serious enough, particularly in a politically contested state that has lost more than 150,000 manufacturing jobs since January 2001, that Assistant Commerce Secretary William Lash traveled to the Zippo factory Monday to talk about rampant overseas counterfeiting.
Lash travels to China later this month for high-level talks about compliance under World Trade Organization rules.
Zippo, which employs about 700 people, has refused to manufacture overseas. Its complaints will play a prominent role in the government's case that China needs to do a better job stopping counterfeiters, Lash said.
Zippo has spent about $10 million investigating foreign counterfeiters, but with limited success.
The vast majority of bogus Zippos are made in southern China at factories that can knock out 45,000 replicas a day, as many as the Zippo factory in Bradford, said Greg Booth, Zippo's chief executive officer. Those replicas end up everywhere from Europe to Latin America, company officials said.
China has become more willing to crack down on counterfeiters since the country joined the WTO in 2001, but counterfeiting remains a huge problem, Booth said.
In 1986, very few Zippos were sold overseas. But their reputation preceded them, in part because the lighters appeared in 1,400 American films. They were introduced to other continents in the mid-1980s and today 60 percent of all Zippos are now exported.
U.S. Rep. John Peterson, R-Pa., said Democrats failed to stand up to China under previous administrations.
"This administration is getting tough," said Peterson, who was at Zippo company headquarters Monday. "They will go to whatever means necessary to hold China accountable."
Regardless of what happens during trade talks, Asia remains a huge market for Zippo and other manufacturers. About 20 percent of all Zippos are now bought in Japan, though that number could be challenged by China, Zippo officials said.
China's middle class totals 350 million people. "That's bigger than our entire population," Booth said. "A third of the world's smoking tobacco is consumed in China."
Zippo is a private company and does not release sales figures.
Despite spending millions, Booth concedes the best the company may be able to hope for is to stop the spread of counterfeiting.
Zippo's success, however, is part of the problem.
"The stronger our brand gets worldwide, the more problematic it becomes," Booth said. "It's just the number of plants interested in counterfeiting."
With Zippos going for $30 in China - a week's pay for some workers - the demand for cheap knockoffs is immense.
Counterfeiters can make so much money on fake Zippos in a few days, it can be worth setting up shop for a week, said Peter Morici, professor of international business at the University of Maryland.
"One thing about China, no matter what you're making, if you are successful, someone will copy your product and they're going to do it rapidly," he said.
Even with rampant counterfeiting, Morici and other trade experts say Zippo won't leave China anytime soon.
"This is a matter of leakage, but it's a pretty big pipe and there's going to be a lot of water running through it," he said. "It becomes a question of selling 1 million lighters when you think you could be selling 2 million."
AP PHOTO
The counterfeit lighter at left has a more shallow impression and an incorrect code compared to the one on the right, which was made in the Zippo plant.
Gotta wonder what Mr. Peterson is lighting with his Zippo, if he thinks this administration will be tough with China.
True, the are getting tough. They now are saying pretty, pretty please, instead of just please.
Who carries a five pound steel lighter anymore that when lit it smells like gasoline?
Windproof and indestructible (with a lifetime guarantee).
I still have a couple of my dad's old Zippo lighters. He quit smoking in 1960 after his first heart attack. They still give a whiff of gas...
Maybe they should vote for more Democrats like Sick Willie who gave China our U.S. patents, plans and all.
where's MY MAN WILLIE
I was in Sao Paolo, Brazil about 5 years ago. They've got entire shopping malls selling knockoffs of American and Japanese goods.
Who carries a five pound steel lighter anymore that when lit it smells like gasoline?
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Ask one of those Evil Cigarette Smoking Veterans who still carry one. Mine is from my first ship in '65. They fix them forever but I still buy one on occasion. Those throw away ones are a piece of Crap,and are worth what you pay for them. They are not prone to "cooking off" in a hot car or other hazzards associated with knock off BICs.
tHAT'S DIFFERENT. I just see their market slipping over the decades.
Don't get me wrong, Chinese companies should not be knocking off Zippo product. But, Zippo lighters should not also be 10 times more expensive in China simply because Zippo does not want to manufacturer there.
Instead of spending $10 million chasing down foreign companies that copy its product it should have spent $10 million giving those companies a run for their money. And their efforts to stop the copies in China would be much more successful with a foothold in the country.
Don't get me wrong, Chinese companies should not be knocking off Zippo product. But, Zippo lighters should not also be 10 times more expensive in China simply because Zippo does not want to manufacturer there.
Instead of spending $10 million chasing down foreign companies that copy its product it should have spent $10 million giving those companies a run for their money. And their efforts to stop the copies in China would be much more successful with a foothold in the country.
Cheap Zippo knockoffs have been getting made all over the world for decades. I got one once in a Camel promotion that sucked so bad you couldn't actually remove the guts from the shell, eventually we even tried with two of us grabbing onto various parts with pliers and pulling.
Of course reduced levels of smoking hurts them. As does Zippos own quality, I've owned three Zippos in my life, one was a gift, one wound up a gift, and the third was just a wild hair thing (I really like the brushed look). Since I still have two of them it's highly unlikely I'll be buying another. Sometimes making the best product in the world isn't actually a good thing.
So why aren't the manufacturing there. Seems kind of dumb not to be set up where your company does 20 percent of its business.
Honestly I don't see the problem here. The things have been around forever and are primitively simple so there shouldn't be any patent issues to deal with. About the only piracy involved would be if they copied the Zippo trademark itself.
Even though I quit smoking I still always bring a fully charged and ready Zippo any time I go out into the non-urbanized world. I know with complete confidence that any disaster that renders my Zippo incapable of lighting a signal fire that could save my life will have first rendered me incapable of motion, it's a 100% reliable source of fire, and if you bring the can of extra fluid you've even got a good cheat method of getting your fire started.
I got the impression from the article -- "Zippo, which employs about 700 people, has refused to manufacture overseas." -- that the Zippo company values patriotism (or nationalism) ahead of profits. I wonder how many of the 700 workers truly appreciate that.
i still have and occasionally use the 4-dot Zippo my Mom gave my Dad in 1942 when he joined the Navy while the one she gave me is loooong gone
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