Shanzhai ji (bandit phones) came into existence in 2005, the year that Mediatek, a semiconductor design company in Taiwan, introduced an innovation that significantly reduced the cost and complexity of producing cellphones. Developers could create their own product, without having to fund costly R&D or face the threat of legal action for infringing on intellectual property rights.

In 2007, the industry got another boost when regulators stopped insisting that companies needed a license to manufacture cellphones.

Since then, shanzhai phones have mushroomed, capturing an enormous share of both the domestic market - as well as of emerging markets in Asia, Africa, the Middle East and South America.

Shanzhai companies like G'Five have grown into some of the largest producers of cellphones in the world. They are posing what may well be a lethal challenge to famous brands such as Nokia, Motorola and Samsung.

Many businesses with humble shanzhai origins are now becoming formidable market disrupters - and, in many cases, market leaders. Apple has taken the top end of the market. Shanzhai will take care of the rest.

Due to the uniquely rapid production cycle, companies have been forced to innovate because the branded companies are too slow to come up with new products to copy.

When there is nothing left to counterfeit, you have to try to come up with something new.

Indeed, their incredible speed is one of the key characteristics of shanzhai producers. This accelerated pace demands innovation.

Today, companies need only speculate on a product and a shanzhai version immediately exists.

As they evolve, shanzhai companies are inventing their own production ethos. The makers of shanzhai are no longer just rebelling against expensive world-leading brands. They are emerging as indigenous adaptors and innovators.