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.
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
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) Source: “Alla sbarra in Cina il mercato dei falsi,” La Republlica (Italian newspaper) November 4th 2005. Adidas31% Nike28% FILA9% Reebok9% Kappa6%
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. Versace19% Lee Cooper10% Calvin Klein10% Lacoste6% Levi’s6% Burberry3%