Probably quite a lucrative wee earner, especially if you’ve just snaffled a box load or two from the factory (that’s how a lot of these ‘fakes’ end up on eBay isn’t it?)
I don’t think there’s a over riding route to market for this sort of stuff.
China is fairly ‘relaxed’ about patent laws, shall we say.
Some things are straight fakes, there’s a industry based on finding over-priced odds and sods and copying them – there’s quite a few little things in the cycling industry that costs pennies to make and sell for folding money because the market will pay it, same goes for IT stuff and bits for consumer electronics. They can be decent quality, after-all if SRAM swallow the design costs for you, you can probably produce a decent quality power link, unpackaged powerlink for a few pence and sell at £2 a pair or whatever they are. The problem with these, iPhone screens and bits, PSUs for PCs etc is quickly the market gets flooded and it’s a straight race to zero to undercut he next guy on Amazon so the quality goes to shit quickly.
Then there the ‘afterhours’ stuff – supposedly you buy production in China almost off the shelf – you find a factory, give them a design and QC target and they bang them out on a price per unit, so any that fail QC the ‘maker’ doesn’t have to pay for – but apparently the factories are known to either sell the better failed QC units – supposedly like the recent serial number missing RS stuff or even compete whole production runs using their customers designs and sell them under the counter to wholesellers who place them – they’re not really ‘fake’ they’re kind of stolen or maybe that’s just a fairy tale they sell because if someone offered you a ‘real’ frame for half price because it was made without the makers knowledge but was exactly the same – you’d be tempted right?