Almost-authentic fake fashion goods market insights
Today, most of the almost-authentic fake fashion goods are handbags, mainly as bags have become the most recognizable and attainable luxury goods. The peak of counterfeiters came with powerful brands placing their logos all over everything. This is because when people carry goods like logoed handbags around, it is a status symbol to show their high class.
1. Its Competitive Advantages Compared To Authentic Goods
On top of that, production of the almost-authentic fake fashion goods is so sophisticated, so these counterfeits are also called ”super fakes”. The luxury brands's products normally are objects to be faked. The counterfeiter easily finds a factory to mass-produce counterfeiters accurately at a lower price and a lower standard. Therefore, consumers can purchase the fakes to meet their requirements at a lower price.
Besides, there is a shocking number of purchasers ending up on websites selling almost-authentic fake fashion goods. There is an increase in online counterfeit sales. It is also worth noting that the number of sale seekers had grown substantially, with a ratio of 28 sale hunters to 1 fake-hunter. Most of purchasers are loyal to brands they are familiar with, but they are also seeking the best deals on goods. Sometimes, you can find more creative from fakers than the brands that they copy.
2. How It Would Develop & Expand
Almost-authentic fake fashion goods, as a market behavior, exist due to the pleasure from purchasing and super profit from producing. Besides, there are 6 non-market factors behind the production of counterfeiting in China. They are economic, institutional and social reasons that maintain this illegal industry. Based on the $7 trillion of total sales of goods in China, producing counterfeiters is a very sizable activity in this nation’s economy. One estimate gauged the counterfeit goods account for 8% of global trade. Therefore, it has already become a significant focus in the international trade relationships.
3. Risks analysis for luxury brands
Luxury brands are fixed-cost. Staff, flagship stores, sample collections, brand communications and other essential factors of the operation of luxury brands are all cost-intensive. Due to the development and expansion of consuming counterfeiters, a downturn in sales of luxury brands can result in margin compression. Last year was severe for luxury brands. While mass fashion retailers and labels began to feel the recession’s effects, luxury retailers were isolated for a longer time. That is the reason why only a few gained value on the annual list of the world’s the powerful brands release. While the luxury brands were down by 3%, it is still an excitement. Brands like Prada and Burberry, which got out of the top ten this year. Moreover, luxury brands like Hermes and Louis Vuitton factually worked better than last year.
Apart from lost sales, luxury brands are also diluted their brand equity and reputation by the widespread availability of counterfeiters. In case a client’s first purchase from a powerful brand turns out to be a lower quality good, which means that you are losing the customer value from a long-term relationship, which is much more valuable than the single fake good.