*Sigh*
How do well managed companies deal with cheaper, lower quality clones? They either acquire a company to make cheaper versions of their products, or create a subsidiary. At some point almost every single premium brand does this. Litigating is the worst option. Litigating is best done only on products that share the same economic market segments.
A lot of successful startups, or smaller companies tend to believe that opening or buying a subsidiary dilutes their brand. In the real world. Dow Chemical produces to different market segments, microsoft, Apple, Exxon, GM, ext ext ext.
Gibson faced similar problems. Today if people want a gibson "clone" they buy an Epiphone. The Gibson example has been used in Colleges for decades. If people are copying your Premium product with lower quality versions, simply do the same under a subsidiary or acquisition company. The Epiphone drives sales of Gibson guitars, and the Gibson drives sales of the Epiphone. It is win win. It also prevents today's Jebao from becoming tomorrow's Samsung, or Nissan.
Someone may not be able to afford a Gibson today, but if they are going to play a cheaper version they want the one that is the next best thing. People may get a Epiphone now and in 10 years be in a different economic bracket and get a Gibson.
Gibson is made in the USA.
Fenders flagship guitars are made in the USA.
Both outsource cheaper versions, and prevent losing market share to clones. Those clones if given an opening will become the next Nokia, Samsung, Nissan, facebook ext and start eating your premium brands lunch.
Here is a simple test if you agree with me or not.
If Tunze got into the mid range market under a subsidiary and made a version of Jebao RW pumps, what brand pump would you want to buy, and what brand would you trust more in your tank. Tunze subsidiary or Jebao.