Case Study

In Vino Veritas

Challenge.

Champion conducted a large‑scale investigation into suspected counterfeit electrical products circulating across multiple cities in Guangdong Province. What began as routine market intelligence quickly revealed a complex network of processing sites, storage warehouses, and distribution channels operating across Dongguan and Shenzhen. This case highlights Champion’s ability to execute multi‑site investigations, coordinate with multiple enforcement agencies, and deliver high‑impact enforcement outcomes for global electronics brands.

Background.

After China lifted anti‑dumping and other duties on foreign wines, our client’s products re‑entered the Chinese domestic market at scale. However, parallel imports flooded distribution channels, and counterfeit and copycat products resurfaced.

Given the complexity of the situation, a granular, ground‑level assessment was urgently needed to understand the true market situation and identify risks affecting brand integrity and consumer trust.

Champion deployed experienced investigators to conduct comprehensive market surveys in cities in three provinces, namely Guangdong, Shanghai, and Heilongjiang – to understand the evolving landscape of genuine, parallel‑imported, counterfeit, and copycat products.

Key Findings.

Champion escalated the findings to the Guangdong Administration for Market Regulation (AMR), which initiated a unified enforcement action with support from local Market Supervision Bureaus.

Investigative Process

Large‑Scale Field Survey

Champion investigators visited over 1’000 wine outlets across 41 administrative districts, documenting product availability, authenticity indicators, pricing, sourcing channels, retailer behaviour, and consumer preferences.

Product Authentication & Classification

All products bearing our client’s branding / name which were found during the investigation were categorised as genuine, parallel imported, copycat, or counterfeit, enabling precise and granular statistical analysis across cities.

Retailer Interviews & Intelligence Gathering

Investigators conducted structured interviews to understand sourcing channels, attitudes toward genuine vs. parallel imports, perceived risks, consumer trends, and market pressures.

Data Consolidation & Comparative Analysis

Champion produced a detailed cross‑city comparison covering parallel import penetration, infringement rates, product type distribution, price ranges, and high‑risk districts.

Case Studies of High‑Risk Outlets

Investigators documented specific outlets selling counterfeit or mixed‑source goods, including product details, pricing, sourcing claims, and risk indicators.

Key Findings.

Market Composition

Across the more than 1’000 outlets surveyed, investigators found:

many thousands of bottles of genuine wines and bottles of parallel imports.
hundreds of bottles of copycat products, amongst which were numerous bottles of counterfeit

High‑Risk Outlets Identified

Champion documented multiple outlets selling counterfeit branded wines, copycat brands, and parallel imports mixed with counterfeit stock.

Your Champion, Your Win.

Champion delivered a comprehensive business intelligence report, empowering our client with complete and verified information from thousands of real-world sources. This allowed them to:

Understand real‑world market conditions post‑tariff removal

Identify and monitor high‑risk cities, districts, and retailers

Quantify the scale of parallel imports and counterfeit activity

Strengthen brand‑protection strategy and enforcement planning

Adjust pricing, distribution, and market
‑engagement strategies

Improve consumer
‑education and retailer
‑communication initiatives

This large-scale investigation provided our client with clear visibility into a rapidly changing market and enabled them to take targeted, data‑driven action to protect their brand across China, including partnering with Champion to begin targeted investigations to remove counterfeit products from the market, and identify the individuals responsible. Several successful investigations were subsequently conducted.

Facing similar challenges?

Speak with our specialists to understand how a similar enforcement approach could be applied to your business.

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