National Tide 1980.

The series of measures to combat counterfeiting, finalized at the senior management meeting on April 11, 1991, were quickly implemented under the coordination of Ning Weimin and the full support of Zou Guodong.

Unlike other foreign clothing brands entering the mainland market, which rely on rather vague slogans to combat counterfeits.

Pierre Carton's actions almost always precisely target the weaknesses of counterfeiters and sellers.

The waves of emotion and subsequent feedback from the public not only confirmed the effectiveness of the strategy, but also allowed everyone at Pierre Cardin China to witness once again how prescient Ning Weimin was.

The first to show its power was the "anti-counterfeit goods propaganda campaign".

The core of this tactic is to use exemplary "real-life cases" to shatter consumers' wishful thinking.

Pierre Cardin's China planning department, in conjunction with several mainstream newspapers in major cities across the country, conducted special reports on the topic, highlighting many negative examples of losing more than one gains.

They cited an example of a Shenzhen electronics factory where the factory manager wore a fake Pierre Cartier suit to discuss cooperation in an attempt to save costs. The German representative exposed the deception on the spot, and the 500 million yuan cooperation project fell through.

This report caused an uproar among both business people and the general public.

The CEO of a foreign trade company in Beijing was particularly moved after seeing the report; he preferred to believe it was true rather than dismiss it.

He secretly threw away the several fake crocodile belts his wife had bought for him when he got home.

They even made a special internal meeting requiring all employees to "wear genuine brand-name clothing when dealing with external parties. Anyone who loses an order because they wear counterfeit goods bought from a street stall will be fired immediately!"

After the meeting, the company's employees were complaining in the break room, "The factory manager of this electronics factory is really unlucky. If he had known that foreigners would be so particular, he would have borrowed money to buy a genuine product!"

Even more impactful than this laughable incident was the nationwide panic triggered by the "toxic clothing" incident.

Under the direction of Pierre Cardin, a customer wearing a fake Pierre Cardin T-shirt with a rash all over his body took a hospital diagnosis certificate and test report and led a reporter to the stall where he bought the clothes. He then broke down in tears in front of the camera.

"I just wanted something cheap, but I never expected it would almost ruin my health! The doctor said the formaldehyde in the fabric of the clothes I bought was 30 times higher than the standard, and wearing them for a long time could affect fertility and even cause cancer!"

The onlookers were filled with righteous indignation, and some even tried to overturn the clothing stall on the spot.

After being dissuaded by market management personnel and industrial and commercial inspectors, many people started cursing at the stall owners, saying, "You heartless vendors, how can you make money like this without any conscience!"

The owner of the clothing stall became a pariah, trembling with fear of being beaten. He obediently complied and was punished on the spot by the industrial and commercial inspectors and market management personnel.

Ultimately, the clothing vendor not only had his counterfeit brand-name goods confiscated and was fined a considerable amount of money, but also faced subsequent lawsuits and claims from the customer who came to his door.

That's not all; after being discussed by newspaper experts, the news continued to gain traction.

Soon, a wave of "self-inspection of wardrobes" swept through many ordinary people's homes.

Thanks to the neighborhood committee aunties' promotion at the alley entrance, many housewives went back to check their children's clothes or asked their children, and any Pierre Cardin clothing of dubious origin was immediately thrown into the trash can.

She was still muttering and scolding the child.

"Are you stupid? You could have eaten something much better for that price. Why waste money on this stuff? This isn't clothing, it's poison!"

Some young people are quite rebellious, and because they were not convinced, they almost got into a fight with their parents.

Unexpectedly, their parents showed them the newspaper, and this time the truth was indeed on their side.

"Look, look! The experts in the newspapers have said that these clothes are toxic, and some people have even ruined their health wearing them. If you don't believe it, you'll regret it later! You might even get a terminal illness. Do you still want to get married? You're making us, the elderly, bury our children! You unfilial brat!"

As a result, PC clothing, which was originally the best-selling counterfeit brand, suddenly became unwanted overnight.

No matter how hard the stall owners tried to sell their wares, they couldn't sell anything.

This even caused a significant drop in sales for other counterfeit clothing brands.

Many stall owners found themselves stuck with unsold goods and could only lament their misfortune.

They never expected that Pierre Cardin's counterfeit clothing would cause such a huge scandal, scaring consumers away.

Now we can only fool those who are out of touch with the news; we'll sell whatever we can.

Some of the smarter people secretly started finding someone to modify the trademark, which turned out to be a clever way to save their lives.

Conversely, Pierre Cardin's actual users, in addition to finding the spectacle amusing, also felt a sense of pride and disdain.

In an elevator of a high-end office building in Beijing, several people were riding together to greet clients.

Mr. Zhang, a guest, is a loyal Pierre Cardin user.

Because everyone was being polite to each other, many people complimented Mr. Zhang on his dignified appearance and stylish attire, so the conversation naturally turned to the anti-counterfeiting incident that was being hotly debated in society.

"Of course, a real Pierre Cardin is different from a fake one; you don't have to pay for it, right?"

Mr. Zhang, who runs an import and export business, patted his suit and said with a smug tone, "Have you heard about that news about counterfeit clothing lately? It's ridiculous. Someone bought a few fake designer items to save money, wore fake Pierre Cardin, and ended up in the hospital. Who knows if there will be any long-term effects? Who knows how many years he'll lose in his life. Poor thing."

The company's vice president, who was in charge of receiving guests, was also wearing a Pierre Cardin suit and echoed the sentiment.

"Absolutely! Those who wear counterfeit goods are really losing out. They're just ordinary people, yet they insist on pretending to be social elites. Vanity really kills people. Don't they realize that their tattered clothes will generate static electricity when it gets cold? Do they really think they can get away with it? It's purely self-deception, just fooling themselves. Besides, with their meager income, even if they wore real PC clothing, people would still think it was fake. How stupid."

"That's what they call 'the real can't be faked, and the fake can't be real.' A fake can never become the real deal. Hey, you know what, I just love the quality of Pierre Cardin's suit fabric. It really doesn't generate any static electricity at all."

"You're right. These Pierre Cardin suits are truly something you have to experience to believe. They may look ordinary, but the cut, fabric, and workmanship are unmatched by other brands. French brands are just different. They don't generate static electricity, and there aren't even any wrinkles. A little ironing and they're perfectly shaped. The only downside is that they're a bit difficult to maintain; they need to be dry-cleaned every time."

"Haha, you don't care about such a small amount of money? This is what makes a good suit."

Everyone else in the elevator listened attentively, their eyes filled with envy as they looked at the two people of the highest status who were chatting enthusiastically. They deeply understood what the difference between social classes meant, and couldn't get a word in edgewise.

Many people secretly resolved that they would rather save more money in the future to buy genuine Pierre Cardin shoes to wear.

That's not all; the effect of this public opinion is just the appetizer.

Pierre Carton's proactive measures, including source inspections and price increases, triggered an even greater emotional surge.

In mid-April of that year, media outlets in several first-tier cities across the country reported that a counterfeit goods hoarding den in Zhejiang Village, Beijing, was shut down by the industry and commerce department, and more than 4 counterfeit Pierre Cardin garments were destroyed.

Pierre Cardin awarded a substantial bonus for this, and announced the reward program and hotline for reporting counterfeit goods to the nation on television, stating that it would remain in effect indefinitely. After this incident was reported by the media, consumers truly felt the company's determination to combat counterfeiting.

At the same time, Pierre Carton's announcement of a 15% price increase starting June 1st this year served as a starting gun, making wealthy people across the country uneasy.

Almost immediately, long queues formed at Pierre Cardin stores in several first-tier cities across the country for a week, with many business owners carrying cash and elegantly dressed ladies in the lines.

Mr. Wang, who runs a building materials business, bought three suits and two jackets in one go, talking to the people around him as he paid.

"I can save more than a thousand yuan if I buy it now. I'll wear it anyway, so buying it in advance is a good deal!"

Many people in the queue echoed this sentiment.

Some people say, "Absolutely. In my opinion, the price of Pierre Cardin suits will only go up, not down. Sooner or later, it will reach 10,000 yuan a set. Of course, the sooner you buy, the better."

Just as Ning Weimin predicted, for wealthy people, the sales logic of luxury goods is completely different; the higher the price, the more valuable they become.

This is similar to the current situation where the prices of the top ten famous liquors have skyrocketed because the government has further liberalized the sales prices of famous liquors.

In 1990, the official price of Moutai liquor remained at 90 yuan, and Wuliangye at 50 yuan.

In March of 1991, Moutai had already risen to 160 yuan, and Wuliangye to 90 yuan.

Therefore, some people are questioning how these wines are being consumed and who exactly is buying them.

Of course, no one can give specific answers to these questions.

But one thing is certain: the higher the price of Moutai rises, the greater the market demand will be.

Even with increased production, it can't stop the demand from people.

It is precisely because Moutai's price has soared ahead of other famous liquors, with its price increase far exceeding that of other famous liquors, that it has gradually been able to secure its position as the number one liquor in China.

Otherwise, why don't you try lowering the price?
As sales continue to decline, prices will fall further, creating a joke like "The Emperor's New Clothes," and trapping the market in a vicious cycle.

As for the industrial and commercial inspectors and managers of major clothing markets in first-tier cities across the country, their emotions fluctuated considerably when they helped Pierre Cardin investigate counterfeit clothing.

They went from being perfunctory at first to being proactive later, but finally fell into disappointment when they found that "there were no counterfeit goods to be found".

Like Old Zhou, the manager of Xiushui Street in Beijing, he used to turn a blind eye to counterfeit goods, feeling that it was "a thankless task".

But when the Pierre Cardin market inspector approached him with a "50 cents reward for each item seized" policy, he was tempted.

In early April, when he found more than 300 counterfeit Pierre Cardin belts and received a reward of 150 yuan, Lao Zhou was all smiles and told everyone he met.

"The French company is really generous; they meant it when they said they'd pay. Their generosity gives us motivation to work!" After that, he led his team through the stalls every day, developing a set of "counterfeit identification tips" and becoming an expert in cracking down on counterfeits.

They made a lot of money; in less than half a month, they and their partners shared a bonus of more than 6,000 yuan. Moreover, they were commended by the industry and commerce department and their superiors for their contributions to fighting counterfeits.

It has both substance and prestige.

But in May, Lao Zhou was troubled because most of the merchants had become obedient.

In their first week, they only managed to find a few dozen counterfeit Pierre Cartier garments from a few greenhorns who had just arrived at the market. Their bonus was drastically reduced; the money they received wasn't even enough for a drink.

He complained with a helpless expression as he received his bonus from the Pierre Cardin market supervisor.

"This is far too little. Last month, we cracked down on counterfeit goods completely, and now it's hard to earn more bonuses! I really miss the good old days!"

It wasn't just Old Zhou from Xiushui Street; managers from Huhaihua Qipu Road, Ting Clothing Market, Gaodi Street in Huacheng, and Baima Market also expressed their frustration, saying that it was "not enough." They used to be able to earn extra money by investigating counterfeit goods, but now they have no way to do so.

It must be said that this phenomenon has become a hidden worry for Pierre Cardin in maintaining its anti-counterfeiting achievements.

Fortunately, the complaints from market management personnel that "there are no bonuses if there are no counterfeit goods to check" were quickly gathered from market supervisors in various cities and promptly reported to the Pierre Cardin China headquarters.

At first, everyone took it as a joke, but as the feedback became more and more frequent, the higher-ups quickly realized that this had become a potential threat to the continued success of the anti-counterfeiting campaign.

After all, the enthusiasm previously generated by "piece-rate pay" relied entirely on the existing stock of counterfeit goods. Now that counterfeit goods have almost disappeared, the motivation of managers has naturally plummeted.

What's even more worrying is that some market supervisors have privately reported that some managers have begun to turn a blind eye to the sporadic emergence of counterfeit goods.

Without the incentive of profit, no one can guarantee that these people won't revert to their old ways of "doing things half-heartedly," and the market, which has only recently calmed down, could resurface at any time.

This situation was quickly brought to the forefront at the executive meeting.

During the meeting, Zou Guodong frowned and tapped the table when addressing this issue.

“Back then, President Ning said, ‘No buying and selling means no harm.’ Now the buying and selling is gone, but the motivation at the execution level is also almost gone. We can’t let our previous efforts go to waste; we need to find a way to keep these managers in line.”

As soon as he finished speaking, several regional managers echoed his sentiments, saying that the attitude of grassroots managers was crucial. If they slackened their efforts, the small workshops in Zhejiang and Anhui might make a comeback.

Just as everyone was discussing the matter, Ning Weimin proposed an adjustment plan.

"The piece-rate payment model is no longer suitable for the current market environment. I think it would be better to change it to a 'guaranteed minimum incentive' system. We would classify each market according to its size, foot traffic, and importance, and issue a fixed monthly bonus to the market managers. The bonus would be 10,000 yuan per month for core markets in first-tier cities, 5,000 yuan for key areas, and 2,000 yuan for ordinary markets. As long as these managers can ensure that counterfeit Pierre Cardin products do not emerge in large quantities in their jurisdiction, or that the proportion of counterfeit products detected is less than one in a thousand, the bonus will be paid in full. If there is a large-scale return of counterfeit products, the bonus for that month will be reduced or even canceled."

When this plan was first proposed, everyone was worried that the cost would be too high, but surprisingly, CFO Xiong Jianmin was the first to stand up and express his support.

Holding the newly compiled April financial report in his hand, he couldn't hide his joy. "Everyone, don't worry about anything. This month, our sales of genuine products increased by 4% month-on-month, and the net profit for the month exceeded 800 million, setting a new record for the same period in previous years. Moreover, the special expenditure on combating counterfeits has been very effective due to the reduction of counterfeit goods, and we spent much less money than expected. Now, we are using a portion of the profits to pay guaranteed bonuses to management personnel. It may seem like we spent more money, but in reality, we have used a small amount of money to safeguard our market foundation. This is a very worthwhile deal."

He paused, his eyes filled with admiration as he looked at Ning Weimin. "To be honest, I was worried at first that fighting counterfeits would be a bottomless pit. Now it seems that President Ning's judgment was spot on. Spending money on fighting counterfeits is not only not a loss, but it has also brought real benefits to the company. This money was definitely worth spending."

With Xiong Jianmin's financial backing, the plan was quickly approved.

When the market supervisors conveyed the new incentive policy, the grassroots managers of the clothing market were instantly thrilled.

Old Zhou from Xiushui Street held the notice and laughed with his employees, slapping their thighs.

"See? That's what you call a big company. Pierre Cardin is really generous! Now we don't have to wait for counterfeit goods anymore. As long as we keep a close eye on the market, we can reliably get 10,000 yuan a month from our big plan. It's much more reliable than relying on cracking down on counterfeit goods before! It also saves you guys from fighting over credit." (End of Chapter)