The Triumph of Shanzhai Culture: No Name Brand

Mobile Phones and Youth Identity in China

Mei Wu, Hongye Li

University of Macau

Taipa, Macau Special Administrative Region, China

(853) 83974243

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Abstract: One of the latest buzz words in China’s popular culture of 2008 is “shanzhai” (literally translation: mountain village), which originally meant a fortress in a mountain occupied by outlaws. However, in its post-modern connotation, it refers to a wide range of mimesis of brand names. It is associated closely with a phenomenon of producing and consuming low-cost products imitating brand names, mostly mobile phones and digital products.

The objective of this paper is to find the connection between the popularity of shanzhai mobile phones among young people and the construction of youth identity in contemporary China. It aims to explore how young people’s choice and use of mobile phones, especially their attitudes towards shanzhai mobile phones express their style/characteristics, i.e. the pursuit of a distinct personality and the resistance towards mainstream culture to construct a sort of anti-mainstream or anti-brand style.

Key words: mobile phones, shanzhai, China, youth identity, brand

1. Introduction

This paper is work in progress which attempts to identify the connection between the popularity of shanzhai mobile phones among young people and the construction of youth identity in contemporary China. It explores how young people’s choice and use of mobile phones, especially their attitudes towards shanzhai mobile phones express their styles and characteristics, particularly their pursuit of a distinct personality. The inquiry centres on deciphering the shanzhai phenomenon in relation to the youth resistance to the mainstream culture and their construction of a sort of anti-mainstream or anti-brand style. The central research question is: How does the shanzhai mobile phone connect to the characteristics of youth in China today? This central issue is explored by two sub-issues:

a)What are the meanings of the shanzhai mobile phone constructed by phone users in relation to the characteristics of youth?

b)What are the meanings of the shanzhai mobile phone constructed by shanzhai workers in relation to the characteristics of youth?

2. Shanzhai mobile phones

“Shanzhai” is not a brand name of mobile phones, but a generic term for all the small brands, non-brands and even pirated handsets. The term “shanzhai” (simplified Chinese: 山寨; pinyin: shānzhài)in Chinese literally means “mountain village” or “mountain stronghold” which is a metaphor for a hideout of outlaws. However, this old term was re-invented with a new set of meanings in the current digital culture in China. Initially, it referred to a low technological production which copied brand-name mobile phones and other digital products. Gradually, it was used to describe a type of industrial phenomenon in which small and unknown manufacturers attempted to imitate a variety of products of brand names. The word “shanzhai” can be used both as an adjective (“shanzhai phones”) and a verb (e.g. to “shanzhai” a phone). The “shanzhai production” is mainly characterized as mimesis, primitive technology, small operation, low cost, swift market adaptation, customer-tailored design and so on. “Shanzhai products” therefore are associated with brand-name imitation, low prices, shoddy quality, practical functionality, novel designs, alternative styles, etc.[1]

According to media reports, shanzhai mobile phones have occupied nearly 30% share of the domestic market in China. Globally, Chinese shanzhai phones sold about 150 million sets in 2007 when the “shanzhai phones” suddenly rose to prominence. This figure accounts for 1/10 of the total global sales (Fang 2009). Traditionally, shanzhai phones were mostly bought by migrant workers and low-income consumers. However, as shanzhai phones outperformed brand name phones in prices, functions, durability and designs, they became a trendy artifact for teenagers and urban youth in such metropolitan cities like Beijing, Shanghai, Guangzhou and Shenzhen. The most famous centre of shanzhai mobile phone manufacturing and trade is in the Huangqiangbei district in Shenzhen. This area of 1.45 square kilometers is the centre of 27 electronic markets and nearly 30 companies which generate RMB37 billion a year.

The success of shanzhai phones is mainly due to a single factor, namely that shanzhai phones are much cheaper than those by famous brands like Nokia, Sony-Ericsson and Motorola. This is attributed to three reasons. First, shanzhai manufacturers used to be operated in the grey market where they did not acquire the expensive manufacturing permit for mobile phones from the Chinese government. Second, they have depended solely on MediaTeck’s (MTK) chipset and related core technology so that they have limited research and development costs. Third, they have developed a distribution network globally by providing sales partners with up to 30-50% profit on every unit sold. Manufacturers made only 10-20% profit per unit. (Fang n.d.)

In 1998,the Chinese government stipulated that all mobile phone manufacturers had to apply for a manufacturing license approved by the State Ministry of Information and Industry. Only 36 companies were granted a license. Companies without permits were restricted from manufacturing mobile phones. Consequently, many companies started engaging in “brand-sticking production” where companies manufactured phones for those who had a license or had brand names of foreign corporations. This situation created a grey area of phone manufacturing where a huge number of no-name phones and counterfeits were on the market. In 2005,the Chinese government opened up the market to any manufacturer which had a registered capital of RMB200 million and had been operating for at least three years. Several brand-sticking manufacturers like Tianyu and Jinli immediately acquired a license, signifying that they had transformed their operations from a “shanzhai factory” to a legitimate business. By the end of 2007, the government removed the permit system. Mobile phone manufacturing became accessible to any company. At the same time, MTK developed a package of chipsets and core technological support which further reduced the investment and technological know-how expenditure for a mobile phone maker (Fang n.d.).

The MTK chip was central in bringing the shanzhai mobile phone to market. It revolutionized the manufacturing process, created a consistent quality in every handset and was at par with the major Western mobile phone manufacturers’ specifications. In addition, the handsets could be custom made to clients’ needs. For example, the colour and shape of the case could be tailored to a particular client’s specifications, the ring tones tuned to any desired style, the monitor adjusted to size, pixels and colour combination, etc. In sum, the shanzhai handset became very competitive with most world brands and was offered at a much lower cost than the major brands from Japan, the USA and Europe. The shanzhai model of mobile phone manufacture is now similar to the assembly of a computer – the MTK chipset is like CPU, memory ram, hard disks, and a video card. Once the core parts are put into place, all a manufacturer needs is to adjust the handset according to the customer’s demands to choose different cases, ringtone styles, screens and other accessories. Thus a variety of brand new models of handsets are ready for the market. Not only is the quality of these phones quite acceptable, they offer fresher models and trendy designs. For example, during the 2008 Beijing Summer Olympics, there were shanzhai phones which looked like the “Bird’s Nest” stadium and “Fuwa” mascots. During the 2008 U.S. presidential election, “Obama” shanzhai phones were sold for only US$30 in Kenya, and they had Obama’s name and his slogan “Yes We Can” on the phone (Shanzhaiji 2009).

There are also some companies which have become famous in the shanzhai mobile phone manufacturing. Their brand names have ironically become well-known in the shanzhai market. In 2007 Tianyu registered a total sales of 17 million handsets; the number one for a Chinese-brand mobile phone. Jinli, another Shenzhen-based company, was ranked number two in sales for domestic phones. Shanzhai mobile phone manufacturers have posed a serious challenge to international big corporations. For example, the sales of Nokia in the Chinese market declined sharply to 36.1% in the last quarter of 2008 while Tianyu’s market share increased to 8.1% in China, making it the fourth largest mobile manufacturer after Nokia, Samsung and Motorola (Hu 2008).

3. Youth and their construction of meanings of shanzhai mobile phones

The shanzha” mobile phone, as the name indicates, carries a connotation of rebellion, resistance, periphery, and outlawing. It possesses not only ‘utilitarian’ meanings but also a ‘symbolic’ significance for its users. As a central artifact of youth’s self-image (Fortunati 2001) and personal style (Katz &Aakhus, 2002), it symbolizes a range of characteristics that are in association with young people in contemporary China. These characteristics are summarized in this study as: 1) anti-mainstream, anti-authority and anti-brand; 2) novelty-seeking; 3) rational and pragmatic; 4) patriotic; 5) competitive; 6) equality-loving; 7) participatory; 8) identity-searching; 9) tolerant; and 10) entertainment-seeking.

It is reported that among the shanzhai mobile phone’s consumer groups, young people in metropolitan cities constitute a prominent group. It is important to note that this young generation of the "mobile culture" is very unique in Chinese history. They are the first generation of the "single children" who were born after 1979 when China implemented the most strict family planning scheme – "one child policy" in its urban families. There are over 100 million single children in cities (Ren 2006). About 70 percent of urban families are "single child" families. A majority of Chinese urban youth and university students today belong to the "single child" generation. Many studies and popular writing describe this generation as the "Me Generation" who are much more pampered and thus self-centered than the previous generations. They are also believed to be more materialistic, consumption-oriented (Zhong 2007), brand-conscious (Zhao 2006) and vulnerable to the addictive use of such technological artifacts as Internet, electronic/online games, MP3, even cell phones. How would such a generation be attracted to shanzhai phones? Low prices for them may not be the decisive factor in their purchase. Some argue that the appeal of the shanzhai phone to young people of the 80’s and 90’s lies more in their user-friendly designs and multi-functional performance, which are in keeping with the social character of the new generation who seek change and novelty (Zhao n.d.). It is suggested in this study that the young generation identify more with the shanzhai phone because it symbolizes an alternative attitude which mingles entertainment with non-mainstream factors in their everyday life.

According to media’s report, the shanzhai mobile phone also signifies a rebellion for the white collar urban youth who toil at their tasks in front of office computers. They often feel suffocated in their environment of files, meetings and tedious work that they are in need of a toy to release their work-related stress, and the “shanzhai phone” falls into this role of a “toy” with a rebellious spirit (Southern Weekly, 2008). During the 2008 Beijing Summer Olympic Games, young people in Beijing were very enthusiastic about watching the Games on their shanzhai mobile TVs.

For shanzhai mobile phones, there still exists a lot of controversy. For example, some shanzhai mobile phones, which are produced by small workshops, may contain a variety of quality-related issues, but the focus of this research is on the meanings which are represented in contemporary young people‘s choice and use of the shanzhai mobile phone and even their attitude towards the “shanzhai phenomenon”. This study conceptualizes that the mobile phone, as a private and personal artifact of everyday life, embodies a range of fashions and styles which can be defined either as mainstream or rebellious. The shanzhai phone exemplifies a rebellious fashion, which is a type of resistance to the mainstream consumerism fashion emphasizing brands and luxurious consumption.

Because of the fact that the shanzhai phenomenon became prominent just in the last two years, especially during the 2008 Beijing Summer Olympic Games, until now there has not been a systematic study about this phenomenon. In view of its increasing influence in people’s daily life, especially among young people, which, to some degree, is connected with the construction of youth culture in contemporary China. The theoretical framework of this paper is cultural studies, especially from the perspective of youth subculture studies. In the past, studies of the Chinese youth subculture and identity construction have been mainly from the point of view of educators who criticized young people’s rebellious and unruly style, and neglected the study of youth subculture per se. This paper, through the analysis of the choice and use of mobile phones of young people, looks at the connection between new media use and construction of youth identity.

4. Research methods

This study is based on in-depth interviews of 16 young people (nine males and seven females) aged between 17-38 from eight Chinese ranging from cosmopolites like Beijing, Shanghai, Guangzhou, Shenzhen, to secondary cities of Nanchang, Quanzhou, Maoming and Huludao. Interviewees included both users and non-users of shanzhai phones. Among them 13 were selected through a snowball method of recommendations by friends, acquaintances or interviewees. Face-to-face interviews were conducted. The study also involves a QQ group discussion analysis: the QQ groups are formed by people who are in the business of shanzhai manufacturing, promotion and distribution. The content of two QQ groups’ discussion was downloaded in December 2008. Three interviewees were randomly selected from shanzhai QQ groups and interviewed online. Both interviews and QQ discussion content were analyzed through qualitative analysis software. We are currently still in the process of data analysis. The results will be expected to be ready for presentation in September.

One of our presumptions is that young people favour the shanzhai phones because, for the most part, they are against brand names, particularly brand names which represent foreign corporations. The use of shanzhai phones connects with a youth culture of brand resistance and anti-corporate mentality.

However, our initial findings indicate that the use is mostly related to functionality of shanzhai phones: they are cheap, multi-functional, durable, etc. It also symbolizes a trendy fashion—a super cool ‘toy” which can be changed rapidly for a newer model. This paper is still in the process of data analysis. The section below provides a preliminary literature review.

5. Literature review

5.1. Central role of mobile phones in young people’s life

Urban youths in China are vanguards of mobile innovations. China’s mobile population reached 608 million in mid 2008 (Ma 2008), the largest in the world, nearly half of the 1.3 billion Chinese people have a handset.[2] Urban youths are the early adopters of many new services associated with the mobile phone and prominently identify with it in creating varied forms of “thumb culture” ranging from greeting messaging, mobile Internet, mobile news, mobile radio, mobile video, mobile TV, to mobile novels and mobile gaming. A study in Nanjing University indicates that 94.6% of university students own a handset (Zhao n.d.). The penetration rate is even higher for single-child respondents, which reaches 98.2% compared to 90.5% for non one-child students (Zhao n.d.). Adolescents and young adults (aged 15-25) are a major group of texting population. They send out 5.2 messages a day/person (Zhao n.d.). The latest survey by the China Internet Network Information Center (CNNIC 2008) illustrates that young people between the ages of 19-29 are the most avid users of new mobile services. They constitute 73.6% of mobile newspaper users, 70.3% of video services, 72.4% of mobile TV and 77.2% mobile novels (CNNIC n.d.).

Major research on youth and mobile phones points to the centrality of handsets in the lifestyles of teenagers and young adults. Mobile phones are “woven into the fabric of their daily lives, in and beyond the home” (Castells et al 2006: 241). The period of youth is a crucial transition phase for individuals to shake off dependent and uncertain adolescence and step into mature adulthood. The mobile phone, as one of most private and personal devices, plays a significant role in facilitating this transformation (Lorente 2002; Ling 2002). This transition rite is mainly composed of three major phases: a break from the shelter and control of the family; a closer bond with peer groups who provide increasingly influential reference for cognitive, affective and utilitarian decisions; and a formation of individual identity and worldview in regard to beliefs, norms, behaviour and feelings. The mobile phone is found to be inherently favorable for this phase of the young people.