Fashion Incubator: What to Do If a Competitor Orders Your Product

Has a competitor ever ordered your product?From Fashion Incubator's Kathleen Fasanella, comes another terrific post for anyone who sells a sewn product, particular those of you mom entrepreneurs who have invented an innovative sewn product.Back in my Swaddleaze days, the marketing director for Halo Sleepsack purchased one on my website, using her work email address @haloinnovations.com on the contact information. When I saw her order, I emailed her to acknowledge the order and ask what her intentions were. I wanted to know--did they want to license my product? Were they going to do a "tear down"? Or were they just curious about their latest competitor? After all, Swaddleaze was the first combination swaddling blanket & sleep sack. Until I started selling Swaddleaze, Halo owned the sleep sack market. Well, she emailed me back to say that they "always do a review of any competitive wearable blankets on the market." So, I shipped the Swaddleaze to her.Guess what? About 6 months later, Halo introduced the SleepSack Swaddle. And it gets even better. They actually contacted my US manufacturer about producing them and requested costing information.I'm not saying they outright copied Swaddleaze, because in fact, they didn't--instead, they combined Swaddleaze's features with Kiddopotamus's  SwaddleMe's features to "create" their product. ;)Sneaky, sneaky...but if you've invented or designed an innovative sewn product that sells well, EXPECT this to happen to you. In her fab post, Kathleen tells you what you can do when this happens to you.************************** Speaking of competitors buying your products, did you know that the very first new model cars that roll off the assembly line are knowingly shipped directly to the automaker’s competitors? Yep, they are. Alas, I have to leave the whys of that compelling tidbit for part two because Rebecca sends this question (company and personal names are omitted):Hi Kathleen, I got a very weird order yesterday evening and I don’t like the looks of it. The order was placed by [Full Name] from MadeUpName Unlimited in Hong Kong. The email address is sales@MyCompetitorAsia.com. The url is identical to [My Competitor's] US site, so I assume it truly is associated with my competitor. The order is for one style of my widgets in each size. Are they looking to knock off my product? Or just checking out the new girl? I’m trying to decide what to do:

• Refund their money and refuse the order
• Email them and ask what the heck they want
• Contact my competitor in the USA and see if they are interested in arranging a license for my patented technology
• Something else I haven’t thought of?

I do have a very expensive patent attorney who I would prefer not to involve, since my competitor hasn’t done anything wrong as yet, they just seem to have the intention of doing something wrong. Anyone ever run up against something like this? Any suggestions for me? Before jumping to any conclusions, my first step was to find out more about MadeUpName Unlimited and their site. As it happens, the site is an exact duplicate of your competitor’s US site except for contact information. To eliminate the possibility of site spoofing, I called your competitor and asked if the site in Asia was affiliated with their company. They confirmed MadeUpName Unlimited is a legitimate reseller of their product with a broad exclusive territory in Asia. Further checking of MadeUpName Unlimited itself would lead one to believe the company is legitimate -as well as can be determined.I believe there are two possible situations here. One, your niche widgets are increasingly hot in Asia. It hasn’t caught on there yet like it has here but demand is growing. It is possible the firm in Asia is interested in becoming your representative and wants to review your products before approaching you with an offer. The matter of sizing is critical in this market and I can’t say more without giving it away.Most people who are up to no good will have a friend order for them but this party has been completely open thus far. Before filling the order, I would send a friendly, non confrontational email to the buyer asking if they are barred by your competitor from representing competing products.This suggests you are amenable to a similar relationship and not fraught with paranoia meaning you’re not provincial and someone they can do business with. If they cannot enter into similar relationships, I don’t see why they need your product except to use it as a point of comparison with their primary partner’s widgets but then it doesn’t make sense. That would be a function of product development from the US side and they likely already have your stuff on hand. Put it this way, if your competitor is any good they will have already done a tear down of your product.[The subject of tear downs is actually why I wanted to write this entry but then it would be too long so I'll leave that for part two.]Click here to continue reading Kathleen's kick ass post...