Copycat products are by the name clear that these are those kinds of products that haven’t innovated something new and are just the copy of something similar which is already present in the market. The market is now full of copycat products, this is not always because of the popularity of some particular products but also because of the high market demand but a smaller number of suppliers.
When we hear the word copycat, we always visualize something that has been created from someone else's idea. Even some people have a bad perspective regarding this but this is not the situation it has always been. For example, suppose there is a particular noodle company that invented noodles for the first time, so now that doesn’t mean that the same company will be able to fulfill the whole demand of the market. This is the reason why the other organizations are set up that produce the noodles although with a different name than the previous one. The basic idea here is that the copycat products are the products created from any other product already present in the market but with a separate name.
The copycat can even be beneficial for some particular people or organizations but can be disadvantageous for other people or organizations. So, here in this article, we will be learning about the one for whom it can be advantageous and for whom it is not beneficial. Apart from this, we can also check the difference between a copycat product as well as that of a duplicate product.
Disadvantages of the Copycat products
One can make a long list of the disadvantages of the copycat products from the point of view of the organization which once had the patent for the particular original product. This is because the consumers which were dependent on that particular product now will get more suppliers in the market so they will be divided. More suppliers lower the number of consumers to the original organization. Also, the increased number of suppliers removes the original organization from the post of the market power. So, now the price of the product in the market will no longer be in the hands of the original product organization.
So, the major disadvantages are born by the organization that had innovated the product originally. But again, in this situation, there are few losses from the consumer's side as well. The first will be to get to know about the best product in the market of multiple copycat products. So, it creates a sense of confusion inside the consumers that which one of those products will be the best suitable for them. Also due to the several copycat products, many times the customers get cheated and are given away the cheap products in the name of big brands. These were the possible disadvantages from the side of the organization and the consumers. Apart from this, the market will also face some drawbacks such as the increased number of products may result in a constant decrease in the price of the product.
Who has benefited from copycat products?
Since every sector has a negative as well as a positive side, in the same way, copycat products are beneficial for many of the companies and the consumers as well. Not only for them but also the market also it is beneficial in many ways. So, let us observe who is benefiting from these copycat products.
So, the first benefit is always going to be of the organization which has just copied the product from the other organization. This organization didn’t even invest in discovering something new so not only saves a great amount which has to be invested in the research work but also does not have to appoint any of the researchers to do so. This financially benefits the company adopting the copycat product also since the original product must have advertised a lot about it so now, they also save the amount from the advertisement or the introduction of their product in the market as they are already introduced.
Now the next benefit is from the side of the consumers. There are still some people from the economically weaker ground who might be searching for the cheaper version of the original product and majorly these copycat products are cheaper. The next importance is from the side of the market. The market is always in a better position when there are a greater number of competitors all in the market so that the market doesn’t run out of products at any time. Thus, this is how the different benefits and the disadvantages of the copycat products impact.
Difference between copycat and duplicate products
One confusion that is faced by almost all people is that, are duplicate products different from the copycat products or are they the same? The answer is simply yes, they are different from each other. The copycat products are those products whose idea has been cheated and almost the same product is made but with a new and unique name. but in the case of the duplicate product, not only the product is being copied but the whole brand name is also copied with small unnoticeable changes. So, copycat products can’t be categorized as illegal ones until and unless the patent has expired and the organization gets permission from the superior organization but the duplicate products are considered illegal since no consent is taken but still you are using someone’s name.
Therefore, copycats do not always refer to the negative side of the particular product but instead have good opportunities for the new and small retailers to enter the market. Also if you are planning to produce the copycat product in your company then make sure you are providing the best quality product at a discounted price. This will help the new retailers to set their long duration in the market. They also get a chance to explore the market and interact with the consumers who are actually looking out for the alternatives.