CHAPTER THREE
THE MARKET OF COUNTERFEIT
GOODS
© 2011 Taylor and Francis
Fake Stuff
Key Ideas
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The Rise of Brand Names
Celebration of Life Events
The Production of Fake Luxury Goods
© 2011 Taylor and Francis
The Rise of Brand Names
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Clothing was used to as a symbol of social class in
Western society historically. Fashion was one way
for the rich to make social distinction.
Luxury goods industry crafted an “aura of good
taste” through advertising and marketing.
“Luxeplosion” : Asian consumers accounted for as
much as half of the $80 billion global luxury
accessories industry.
Growing market of luxury goods in China led to
government tax on luxury goods since 2006.
2009 Forbes Luxury Brands’ Ranking
Brand Name
Main Product
Brand value
($ billion)
1
Louis Vuitton
Purse
19.3
2
Hermes
Purse
7.48
3
Gucci
Clothes and Purse
7.46
4
Chanel
Purse
6.62
© 2011 Taylor and Francis
2009 Forbes Luxury Brands’ Ranking
(cont’d)
Brand Name
Main Product
Brand value
($ billion)
5
Rolex
Watch
5.52
6
Hennessy
Liquor
5.38
7
Cartier
Jewelry
5.19
8
Moet & Chandon
Champaign
4.84
© 2011 Taylor and Francis
2009 Forbes Luxury Brands’ Ranking
(cont’d)
Brand Name
Main Product
Brand value
($ billion)
9
Fendi
Purse
3.47
10
Prada
Clothes and Purse
2.69
© 2011 Taylor and Francis
Celebration of Life Events
Brand names are given as gifts during comingof-age, wedding or other significant life events.
 Brand names are seen as investment targets
 Methodology: focus groups and interviews,
observation
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The Production of Fake Luxury Goods
The market is organized regionally
 Profit is the major motivation
 Separate jurisdictions and laws between
Mainland China, Hong Kong and Taiwan made
it easy for counterfeiters to operate from a
distance.
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Differences between fake and real
Check stitching, hardware, leather accent, dust
cover, color
 Spelling errors are indicators for counterfeits
 Authenticity card can be fake
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Counterfeit Trade’s Impact on Brand
Names (Sportswear)
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Source: “Alla sbarra in
Cina il mercato dei falsi,”
La Republlica (Italian
newspaper) November 4th
2005.
Adidas
31%
Nike
28%
FILA
9%
Reebok
9%
Kappa
6%
Counterfeit Trade’s Impact on Brand
Names (Casual Fashion)
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Source: “Alla sbarra in
Cina il mercato dei falsi,”
La Republlica (Italian
newspaper) November 4th
2005.
Versace
19%
Lee Cooper
10%
Calvin Klein
10%
Lacoste
6%
Levi’s
6%
Burberry
3%