Its about a year ago, when I first saw an advertising of the company Bork. It claims to be German, but I am German and I don’t know of such a company. Have I been away from home too long and there is some new company in the electronics sector. I doubt it, after all I fly back to Germany about once a month and I frequently visit German electronic markets such as Media Markt or Saturn. No sight of Bork. The companies advertising claims its products are German Quality (not made on Germany, though). On the advertising posters you often find a “Gütesiegel”, which is usually given out by some institute or organization in Germany proofing the Quality of the product to the consumer. Bork’s “Gütesiegel” is just a fake, it doesn’t give you the name of the organization who gave it out. After all its in German language (with grammar mistakes by the way) so most of the Russian consumers won’t be able to read it.
A Bork theme store at Garbushka
I recently asked my German friend Bernd if he knows this firm. He works in Moscow for a large German consumer electronics company and should know a little about the competition. Bernd just laughs and says, you didn’t know that this is common practise in Russia and elsewhere? You just need to open a GmbH (which is a company form, sort of a Limited or Corporation) in Germany and you can claim you are a German company. It doesn’t mean you are producing in Germany, which would give you the famous “Made in Germany”. Basically you can just have a silent company there and that is enough. As long as you have a postal address and you do your tax statements there (for the GmbH, which doesn’t have to have a lot of revenue).
Another big brand Nokia
Bernd says, I should have a look at the label on the bottom of the product itself and it will tell me a lot about it and where it comes from. When we were at Garbushka recently we checked some Bork products. Many of them don’t even have the TUV label, which is mandatory for an electric product that is approved on the German market. TÜV is an independent organization of engineers, which proofs every aspect of a product and makes sure its safe to use for the consumer. Indeed some BORK vacuum cleaners have a TÜV label, which means at least they are safe. But still the products can be (and probably are) produced somewhere in Asia. It just means that the same factory was selling this model (with a different label on it) to a German company and needed to get it approved by TÜV. Most of the products we looked at that day, didn’t even have this TÜV label. Meaning, they never entered the German market.

The German TÜV label guarantees safety = GS
That doesn’t mean that these products are bad. Bork offers everything from DVD players, TV’s, vacuum cleaners, water cookers, and and and. I don’t have a single Bork product in my home and I don’t want to comment on the quality, just on the marketing and branding strategy. Branding is a common thing these days. There are companies like Puma, who don’t have factories anymore. They just buy products (mostly even existing ones already), put their label on it and sell them. They focus on the marketing to give the product a special image. In the case of Puma it’s the “cool”. In case of Bork it’s the “From Germany means Quality”.
A Puma shoe re-painted by the Scrawl Collective (UK)
Most of that stuff is produced somewhere in Asia, where labour is cheap. The funny thing is that the same factories produce products for different brands. If you only stay in your country often you don’t see that, but if you travel and you keep your eyes open you often see the exact same product, but it has another name on it. No, its not a sister company of that brand, but the factory just sold this vacuum cleaner to someone else in that country. And maybe its even much cheaper then, because you pay for that cool image. That sports shoe with the swoosh you just bought for $200 is actually worth $5 or even less. Now add transport and other costs and you’ll get to $10 per pair probably. The rest goes to Nike, which was a pioneer in the branding business. Of course a lot of that money (the $180 difference) goes away from marketing. Hey, someone has to pay for these expensive basketball players and its not Nike, its actually you ;-) OK, the people who work at Nike or Puma also need to make some money and of course taxes must be paid. But do you know, how many pairs of shoes, T-Shirts and other stuff these companies sell? No wonder companies like Puma increase their profits every year and come back with record results.
Links
Something about branding
http://en.wikipedia.org/wiki/Brand
http://www.darwinmag.com/read/070101/brand.html
http://www.allaboutbranding.com/
Why big time branders don’t allow their employees to blog
http://www.gapingvoid.com/Moveable_Type/archives/001068.html
Naomi Klein wrote a famous book about branding (she is against it!) at the end of the 90’s
http://www.nologo.org/