Documentary: Almost all of them are fakes, and the profit is as high as 650%, why do consumers still rush to buy them?
Have you ever seen such an advertisement on the Internet: for only a few dozen yuan, you can buy bags, shoes, clothes from luxury brands such as LV, GUCCI, PRADA?
Have you ever received such goods and found them completely different from what you imagined? If you have had such an experience, then congratulations, you have become a member of a huge market - the counterfeit market. So why is the counterfeit market able to thrive so much?
1. Low cost, high return, difficult to supervise
The supply side of the counterfeit market is mainly manufacturers, wholesalers and retailers who specialize in counterfeit goods. Their purpose is simple, to capitalize on consumer demand for certain brands or products to make high profits. Their approach is simple: use low-quality materials and craftsmanship to mimic the look and function of the real thing, and then sell it to consumers at a low price.
Fakes tend to be very cheap to manufacture. An imitation LV bag may only cost 10 yuan in material costs and 5 yuan in labor costs to be produced. And such a bag, if sold online, may be sold for 100 yuan, or even more. As a result, the profit margin of a fake can reach 650% or even higher.
In contrast, a genuine LV bag may cost 1,000 RMB in materials and 500 RMB in labor to produce. And the price of such a bag on the official website may be 10,000 yuan, or even higher. As a result, the profit margin of the genuine product is only 80% or even lower.
As can be seen from this example, the manufacturing cost and selling price of a fake are much lower than the real thing, but the profit margin is much higher than the real thing. This is the biggest temptation on the supply side of the counterfeit market. The supply side of the counterfeit market can also use some means to reduce its own risks and costs, and improve its own returns and efficiency.
The supply side of the counterfeit market can also use some strategies to improve its competitiveness and influence, and increase its market share and reputation.
The supply side of the counterfeit market is a low-cost, high-return, and difficult-to-regulate group. They use a variety of means and strategies to create and sell fakes in order to make huge profits. They are the main driver of the counterfeit market and the main beneficiary of the counterfeit market.
2. Psychological needs, economic pressure, and information asymmetry
The demand side of the counterfeit market is mainly some consumers who buy and use counterfeit goods. Their purpose is also very simple, which is to use fakes to satisfy some of their needs, whether material or spiritual. Their approach is also very simple, that is, online or physical stores, find and buy the fakes they want, and then use or display their fakes to get the results they want.
The demand for fakes often stems from the psychological needs of consumers. It also often stems from the economic pressure of consumers. It also often stems from information asymmetry among consumers. The demand side of the counterfeit market is a group of psychological needs, economic pressure, and information asymmetry. They make use of fakes to satisfy some of their own needs, both material and spiritual. They are the main consumers of the counterfeit market and the main victims of the counterfeit market.
The impact of the counterfeit market is a phenomenon that damages brands, infringes on rights and interests, and endangers society. It has a direct impact not only on the participants of the counterfeit market, but also indirectly on the bystanders of the counterfeit market. It is an issue that requires attention and vigilance, and it is also a difficult problem that needs to be solved and eliminated together.
epilogue
The counterfeit market is a surprising phenomenon and a worrying one. It exists all over the world, involves a wide variety of goods, and affects people and things at all levels. Its supply side is a low-cost, high-return, and difficult-to-regulate group. Its demand side is a group of psychological needs, economic pressure, and information asymmetry.
