© 2011 Taylor and Francis
CHAPTER THREE
THE MARKET OF COUNTERFEIT
GOODS
Fake Stuff

Key Ideas

The Rise of Brand Names

Celebration of Life Events

The Production of Fake Luxury Goods
© 2011 Taylor and Francis

The Rise of Brand Names

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
1 Louis Vuitton
2 Hermes
3 Gucci
4 Chanel
Main Product Brand value
($ billion)
19.3
Purse
Purse 7.48
Clothes and Purse 7.46
Purse 6.62
© 2011 Taylor and Francis

2009 Forbes Luxury Brands’ Ranking
(cont’d)
Brand Name Main Product
5 Rolex Watch
Brand value
($ billion)
5.52
6 Hennessy
7 Cartier
Liquor
Jewelry
8 Moet & Chandon Champaign
5.38
5.19
4.84
© 2011 Taylor and Francis

2009 Forbes Luxury Brands’ Ranking
(cont’d)
Brand Name
9 Fendi
10 Prada
Main Product Brand value
($ billion)
3.47
Purse
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

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.

Differences between fake and real

Check stitching, hardware, leather accent, dust cover, color

Spelling errors are indicators for counterfeits

Authenticity card can be fake

Counterfeit Trade’s Impact on Brand
Names (Sportswear)
Adidas 31%

Source: “Alla sbarra in
Cina il mercato dei falsi,”
La Republlica (Italian newspaper) November 4th
2005.
Nike 28%
FILA 9%
Reebok
Kappa
9%
6%

Counterfeit Trade’s Impact on Brand
Names (Casual Fashion)
Versace 19%

Source: “Alla sbarra in
Cina il mercato dei falsi,”
La Republlica (Italian newspaper) November 4th
2005.
Lee Cooper 10%
Calvin Klein 10%
Lacoste 6%
Levi’s
Burberry
6%
3%