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Kinox tackles fakes amid expansion plans

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Stainless-steel cookware producer Eric Sun Yung-tson is fighting not only for a slice of the mainland's massive consumer market, but also against the countless number of fakes that are available.

The business development manager of his family-owned Kinox Enterprises is expanding the company's distribution network in first-tier cities this year to lower reliance on overseas markets.

The mainland market, with its rapidly emerging middle class, is too big to be ignored despite rampant piracy, punishing competition and the economic slowdown.

'The spending power is powerful and we don't feel any slowdown in consumption,' said Mr Sun, whose grandfather set up Kinox in 1949 as one of Hong Kong's industrial pioneers. 'But, the mass market chases after low prices rather than quality. This is where more education is needed.'

Consumer behaviour poses a challenge to Kinox, which sells mid- to high-end toasters, coffee kettles and stainless-steel pots in department stores in Beijing, Shanghai, Shenzhen and Guangzhou.

The group, which makes products in Shenzhen for exports, is required to pay 17 per cent value-added tax for selling products in the domestic market.

Since tapping the market in 2005, the group's brand and products have became a target for copycats.

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