On The Italian Brand In China's Non-authorized Network Sales Channels

China is always well known for its imitative ability, that is to say, the production of counterfeit products of famous brands in the world. In the old days, referring to products labeled with "made in China", people would think of poor quality and clumsy copies. Now the story has changed. China has been the "world factory" for years, more and more famous brands moved their production bases to China. There are thousands of small manufactures where you can find the production of world-class brands. Because of the low profit earning from just manufacturing and the prevalence of on-line shopping mode, factories in China have found a new way of earning money through producing more items than contracted quantity of branded products and then selling them online. These products are given birth by the same mother as those being sold in brand store, which are called original order products and following order products. Through this unauthorized on-line distribution channel, manufactures can made considerable extra profit and Chinese consumers can purchase genuine products online spending only10-30%of the store price. This trend is growing at an alarming rate. Among all the branded products prevailing online, Italian brands has occupied a big part for the quantity and quality outflowed from manufactures.In total, this article is aimed at firstly presenting the current situation of unauthorized on-line distribution of Italian brands manufactured in China and then uncovering the causals of the problem. Thirdly, through both quantitative and qualitative analyzing methods combined with cases study and consumer online and In-depth survey with first-hand statistics, the impact of the problem would be revealed. Last but not least, several effective methods are suggested by the author to control and solve the problem including the brand’s own propaganda of position strategy and image building, effective management towards Chinese manufactures by Italian brands, online supervision with the help of local third parties, separating the manufacturing market with the sales market as well as establishing win-win cooperative relationship between brand and manufacture.