Huaqiangbei in decline ?

[Randy W]

in the SCMP's Abacus

Shenzhen's gadget paradise Huaqiangbei struggles to evolve

Phones and tablets give way to drones and bitcoin mining gear

 

The factory, which produced military radio equipment, renamed itself “Huaqiang” -- meaning “China strong.” As the area around it, the new district took on the name of the factory, with “bei” (north) added.

In its heydey, Huaqiangbei's markets had over 13,000 vendors, all able to source their stock from the thousands of factories across the region, producing every type of product and component imaginable.

. . .

The selfie stick, hoverboard and fidget spinner crazes can all trace their origins to Shenzhen -- and Huaqiangbei.

. . .

“You can see there’s a lot of empty space around here,” said Li Chunsheng, pointing at unoccupied shops around him. “Traditional electronics are not in a good shape.”

. . .

“Back in 2002, 2003 when people didn’t have anything like cameras, SD cards, laptops or other electronic products, they flock to Huaqiangbei. But people have everything now.”

 

 

 

[Randy W]

Huaqiangbei has long been notorious for “shanzhai” goods, counterfeit versions of existing products. Indeed, in our visit we spotted smart watches that looked very similar to the Apple Watch. But it’s not just American products that are cloned: We also saw drones that strongly resemble the Spark, clones of a product made by Shenzhen's own DJI.

But as big brands have become more affordable for Chinese customers, shanzhai products are losing their appeal. And the government says it’s trying to change Shenzhen’s copycat image, carrying out raids on counterfeit goods.

 

 

 

“Drones are doing fairly well,” said Li. “Right now at Huaqiangbei we’re bullish on drones, projectors. And another thing, bitcoin mining graphic cards. Just these three.”

 

 

[Randy W]

from Abacus


China's legendary knockoff market could soon be gone

Shenzhen’s Huaqiangbei, the heart of China’s Silicon Valley, is disappearing piece by piece

This week, one of Huaqiangbei’s expansive, multistory malls filled with electronic goodies was shut down for demolition. The Gaokede Electronics Building, hosting some 2,000 vendors, closed shop on April 1.

. . .


“Shanzhai” isn’t just about knocking off other high-end products on the market, though. Copying also means sharing knowledge, something for which Shenzhen’s tech culture has become known. This sharing culture has led some to compare the industry to open source hardware production. Many local tech companies have benefited from this environment.

Shenzhen was also a hotbed of self-balancing scooter production, leading to a number of lawsuits from US-based Segway. In 2015, Beijing-based defendant Ninebot simply bought out its US competitor.

. . .

The growth of average salaries has made cheap knock-offs less appealing, as well. This is especially the case in Shenzhen, one of China’s classified first-tier cities.

As salaries have climbed, so too have rents. Although the area still hosts some 65,000 enterprises with 220,000 employees, occupancy has been declining. As a result, the cheap electronics dreamland has been slated for a transformation.[/size]