The international counterfeit trade for all things, from handbags to software to an electronic device, is worth $461 billion, almost 2.5% of business globally. This is more compared to the worldwide drug trade. Despite efforts guideline, the worldwide trade in fake goods has actually practically increased since 2008.
According to the 2018 Worldwide Brand Counterfeiting Record, global losses suffered due to counterfeiting totaled up to USD 323 billion in 2017, with bag firms alone accounting for $20 billion of that.
80% of the globe’s fake items come from China, and a number of the marketplace’s customers remain in China too.
The marketplace for fake goods in China
There are a number of unique market sectors of consumers who buy phony goods in China. The key sector is customers uninformed that they are acquiring “mirror class” counterfeit watch [นาฬิกาเกรด มิลเลอร์, which is the term in Thai]. This deceptive counterfeiting is widespread, but the marketplace for phony watches in China is greatly driven by consumers who actively search for and also acquisition counterfeit items.
Middle-class shoppers that value brand name eminence composes a huge sector of the non-deceptive counterfeit market. They can pay for the periodic $500-$1000 bag, yet not the luxurious $15,000 Louis Vuitton or Birkin. These aspirational Chinese buyers acquisition fake watches for the same reason the affluent buy genuine items: to replicate their classy idols, thrill peers, as well as improve social standing. Phony items enable shoppers to “consume” prestigious brand names without in fact getting the premium goods.
Some customers purposefully buy imitation watches even though they might pay for a genuine item. They have ample funds; however, they think that the high rates of authentic watches are unwarranted, specifically when they can get a similar version at a much cheaper price.
Chinese Fashionistas Chasing the Trends
Some well-off purchasers of counterfeit watches in China are called “fashionistas.” These fashionistas wish to get the most popular brand-new watches, yet know that another pattern will change it next period as well as are thus unwilling to invest the cash to remain on fad season after period. In addition, they see phony acquisitions as a reduced threat, since limited-edition or just recently launched items are less acquainted with the public, making it harder to call out a fake.