CHAPTER THREE THE MARKET OF COUNTERFEIT GOODS

1. CHAPTER THREETHE MARKET OF COUNTERFEIT GOODS Fake Stuff © 2011 Taylor and Francis

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

3. 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.

4. 2009 Forbes Luxury Brands’ Ranking © 2011 Taylor and Francis

5. 2009 Forbes Luxury Brands’ Ranking (cont’d) © 2011 Taylor and Francis

6. 2009 Forbes Luxury Brands’ Ranking (cont’d) © 2011 Taylor and Francis

7. Celebration of Life Events • Brand names are given as gifts during coming-of-age, wedding or other significant life events. • Brand names are seen as investment targets • Methodology: focus groups and interviews, observation

8. 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.

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

10. Counterfeit Trade’s Impact on Brand Names (Sportswear) • Source: “Alla sbarra in Cina il mercato dei falsi,” La Republlica (Italian newspaper) November 4th 2005.

11. Counterfeit Trade’s Impact on Brand Names (Casual Fashion) • Source: “Alla sbarra in Cina il mercato dei falsi,” La Republlica (Italian newspaper) November 4th 2005.