AI Limitations Surface in Protecting Novel Fashion Marks
In the competitive landscape of U.S. retail, Chinese startups have made a mark by adopting distinctive, non-English sounding brand names. This approach, while deviating from the norm, has proven successful for companies like Pop Mart, a collectible toy retailer.
The success of these brands can be attributed to a balance between cultural localization and brand identity. Pop Mart, for instance, collaborates with local artists and licenses popular characters to tailor its products to regional preferences, while maintaining its core formula of limited editions and gamified experiences. This strategy helps the brand resonate with American consumers while preserving its unique cultural appeal.
Innovative retail and marketing approaches also play a significant role. Pop Mart's use of automated "Robo Shops" (vending machine-style outlets) provides a low-cost, high-visibility retail presence that preserves brand novelty and tests markets efficiently. Their marketing leverages emotional consumerism and digital fan engagement, blending online and offline strategies to build loyalty and cultural cachet similar to major American collectible brands.
The emotional connection and novelty appeal of the "blind box" model, which offers a surprise element and collectible nature, also contributes to the brands' success. This emotional magnetism has helped Chinese brands gain a foothold and buzz in competitive U.S. retail environments, even in the face of geopolitical tensions.
Strategic market entry and expansion are equally important. Chinese companies often take an aggressive internationalization approach, rapidly increasing overseas sales and store footprints. Pop Mart, for example, aims to have 65% revenue from overseas operations by 2027, underscoring the importance of scale and global reach. Strategic placement in cultural and commercial hubs like Los Angeles and New York supports brand visibility and accessibility to target consumers.
Leveraging digital and social media channels is another key factor. While specific examples in the U.S. are less cited, Chinese brands’ success in other Asian markets highlights the power of social media-driven marketing and mascots that resonate with digitally connected consumers. This influence is likely adaptable to the U.S. context, where younger consumers are similarly engaged by digital storytelling and influencer promotion.
However, it's important to note that this approach differs from many Chinese brands with a significant U.S. presence, such as Tik Tok and Alibaba, which have more conventional English-sounding names. Some Chinese factories have been using unconventional trademarks for their products, and the Trademark Office has taken enforcement actions where it has found that some of these practices violate the good faith rule.
Companies could potentially save time and money in the trademark creation process by coming up with something unfamiliar, such as "Haisiwlkj." However, the process of developing brand names that are more consonant with consumer expectations may involve the assistance of A.I. Examples of such unconventional trademarks include "Lvrigfpro" for pharmaceuticals, "Matdg" for jewelry, "Mahcscha" for beach towels, "Bfxlmki" for paintings and paper, "Haisiwlkj" for furniture covers, and "RabvPerce" for toys.
Brands like Huawei, Shein, and Haier, while Chinese, are capable of pronunciation in English, unlike many other Chinese brands. A strong, more distinctive trademark is desirable, as it reduces the chances of running into another mark already used with a similar appearance, sound, and meaning.
As direct-to-consumer marketing from small China-based enterprises continues to grow, it's likely that these brands will evolve their branding habits to develop words and names that look more like familiar terms that will motivate American shoppers to trust those brands and remember the names.
- The USPTO has taken enforcement actions against some Chinese factories for using unconventional trademarks that violate the good faith rule, which could incentivize companies to utilize artificial intelligence in developing brand names that are more consonant with consumer expectations.
- While brands like Tik Tok and Alibaba have more conventional English-sounding names, it's expected that direct-to-consumer marketing from small China-based enterprises will evolve their branding habits to develop words and names that look more like familiar terms to motivate American shoppers to trust and remember these brands.
