Knockoffs, Fakes, Counterfeit…

[Material Boy]

I am really annoyed when designer houses (i.e. LV, Prada, Zegna.....) claim lost of billions of dollars in revenue from the makers of counterfeit designer merchandise. What are the bases for these claims?

I believe the designer houses and the makers of counterfeit products are catering to two mutually exclusive markets. I doubt the buyer of a knock-off LV bag on the street of Manhattan would really make any purchase at the LV boutique across the street. Majority (over 90% perhaps) of these buyers are consciously aware of what they are buying are fakes. In conclusion, the assumption of increased revenue by ridding all the counterfeiters is untenable.

There is another issue in the counterfeit fiasco, erosion of brand image. People who can really afford these luxury products might be turned off by the abundance of knockoff. For these individuals, their disgust would divert their purchases from one brand to another one that are not easily knocked off. Such an action would account for lost of revenue by some designers, but gain for other makers, whose product are not easily knock off.

Where are all the losses coming from?

 

[wheelerray]

I would guess point B. My wife avoids certain brands of purses due to the number of knock-offs she sees everywhere.

I also agree that they are selling to two different markets. My wife would never, ever buy a counterfeit purse regardless of how well they matched quality.

I, on the other hand never buy anything with a visible brand identifier, so do not have the same issue. If I like the style, and the price and quality make it a good value, I will buy it whether it says "Gucci" or "Guuci."

 

[zjpj83]

Originally Posted by wheelerray

I would guess point B. My wife avoids certain brands of purses due to the number of knock-offs she sees everywhere.
Yup, I think that's the argument.

And I don't agree that these aren't marketed to the same people. A Coach wallet is $150, one on the street is $20. Yes, it's a big difference, but the fact is that if even people on limited budgets saved their pennies, they could afford the $150 wallet. (In fact, many peopel with low incomes waste far too much money on material goods.) But many people may choose not to if they know that they can buy a fake one on the street and their friends will still be impressed.

 

[chobochobo]

Originally Posted by zjpj83

Yup, I think that's the argument.

And I don't agree that these aren't marketed to the same people. A Coach wallet is $150, one on the street is $20. Yes, it's a big difference, but the fact is that if even people on limited budgets saved their pennies, they could afford the $150 wallet. (In fact, many peopel with low incomes waste far too much money on material goods.) But many people may choose not to if they know that they can buy a fake one on the street and their friends will still be impressed.


By the same token, I wonder about the number of LV bags I see being carried around by 'ordinary' people. I'm definitely no expert with LV and tend to assume that it's fake, unless the rest of the person 'matches up' to the bag. I know that lots of people do scrimp and save for their designer stuff but you wouldn't expect someone to carry an expensive bag and then spend 10 dollars on the rest of their outfit?

 

[CoryB]

Originally Posted by chobochobo

By the same token, I wonder about the number of LV bags I see being carried around by 'ordinary' people. I'm definitely no expert with LV and tend to assume that it's fake, unless the rest of the person 'matches up' to the bag. I know that lots of people do scrimp and save for their designer stuff but you wouldn't expect someone to carry an expensive bag and then spend 10 dollars on the rest of their outfit?

I always think this too. I judge "real or fake" based almost solely upon the the rest of the person's wardrobe. I really love seeing Burberry bags that don't even have an attempt at pattern-matching; the bags can be spotted at 1/2 a block.