"Buying luxury goods can be challenging and exciting, but unfortunately, consumers don't have the math to deal with this complexity. This statement is a relentless revelation of the current chaos in the luxury market.
In August 2023, a distinguished lady in Changsha, Hunan Province, had just successfully sued Louis Vuitton for selling counterfeit and shoddy products, and finally won three times the compensation. However, shortly after the dust settled on her case, another woman got into a heated argument with the merchant over the purchase of a fake Gucci item.
These incidents are just the tip of the iceberg, and the phenomenon of luxury goods counterfeits is no secret for a long time. According to relevant data, the rate of luxury goods counterfeits in daigou and micro-business channels is surprisingly high, reaching an astonishing eighty percent and ninety percent respectively.
As a product targeting high-end people, such results are really jaw-dropping.
What's even more shocking is that, according to people familiar with the matter, there have been bad behaviors within Hermes (Hermes) that employees use core technology to copy Hermes bags and sell them to the outside world. The same leather, the same workmanship, only a little difference in price.
For the majority of consumers, it is indeed worth considering whether such a product is truly extremely valuable.
"Almost all of them are fakes, and the profit margin is as high as 650%, why do people still flock to it?"
Looking back over the past few years, the luxury industry is booming in the Chinese market. With the prosperity of the country's economy and the increasing improvement of people's living standards, luxury goods that were once out of reach have now quietly entered the homes of ordinary people.
Not to be outdone, Chinese aunts have become the mainstay of luxury spending in overseas luxury stores, while the younger generation in China is not to be outdone, accounting for half of the luxury market.
Walking through the streets, you can see young people carrying Louis Vuitton (Louis Vuitton) and Gucci (Gucci) on their backs, showing off their fashion taste.
This phenomenon is no accident. Superior design concepts, exquisite craftsmanship and profound historical heritage have made luxury goods the focus of countless consumers.
In the minds of many people, owning a luxury is not only a symbol of status, but also a manifestation of the pursuit of quality of life and attitude towards life.
However, behind this luxury consumption boom, there is a worrying problem - the proliferation of counterfeit goods. Even internationally renowned brands such as Louis Vuitton and Gucci have been repeatedly exposed to scandals selling fake goods.
Recently, a distinguished woman in Changsha held the sword of justice by legal means and filed a lawsuit against the world-renowned brand LV, accusing it of selling counterfeit and shoddy products.
Such an event has sparked the keen attention of consumers as they begin to re-examine this otherwise noble and mysterious field.
Luxury, once regarded as a luxury decoration for a few, has now fallen off the altar and is easily accessible to the general public. However, behind this closeness, there is a huge test of quality and value commitment, which undoubtedly brings deep doubts to consumers and a layer of haze over the entire industry.
First of all, we would like to mention the first group of people, who desire luxury goods but cannot afford the high price of the real thing.
For them, luxury has been integrated into their daily lives, and without luxury, they may feel at a loss, however, the cruelty of reality makes their economic strength unbearable for the price of the real thing, and in this paradoxical dilemma, they end up choosing to buy fakes at a relatively low cost to satisfy their needs.
This may not be driven by vanity, but by a manifestation of habits and attitudes. Next, we will discuss the second group of people, who are motivated by self-reward and the psychology of satisfying vanity. They don't come from wealthy families, but they don't belong to the poor class either.
They have a little savings on hand and sometimes want to buy a luxury item to embellish their lives, so as to gain a sense of self-satisfaction, however, they know that the price of luxury goods is not affordable, and a genuine item may be too luxurious for them, so they have a flash of inspiration and choose to exchange the lowest cost for the greatest "value" - buying fakes.
In their eyes, as long as they can meet their needs and avoid excessive spending, why do they have to buy the real thing?
There is no doubt that there are groups of people who have a deep love for luxury itself, regardless of its authenticity, and who love the stylish look and design excellence of luxury goods.
For them, the reason why luxury goods can win the reputation of "luxury" is not only because of its high price tag, but also because of its unique charm.
Therefore, even if they know that they are buying a counterfeit product, they are still interested in it and enjoy it. It is these very different motivations and mentalities that have contributed to the rapid growth of the counterfeit market.
In the eyes of some people, fakes meet their actual needs, while in the minds of others, fakes satisfy their endless pursuit of vanity.
Under such a driving force, the counterfeit market is expanding like a wildfire, and it is difficult to stop. 4. Interlude - the reason for the boom in the counterfeit market
So, why is there such a huge market for counterfeit luxury goods? It is not difficult to get to the root of this phenomenon.
First of all, the imbalance between supply and demand is an important factor that leads to the prevalence of counterfeit goods. Genuine products on the market cannot satisfy the desire of consumers to buy, and fakes naturally become an ideal alternative.
As the article says, some people "can't afford the high price of the real thing, but can't meet such a huge demand", so they choose to buy fakes.
Secondly, the characteristics of luxury goods themselves are also a key factor in the proliferation of counterfeit goods. Modern consumers tend to pay less attention to their practical features when shopping for luxury goods. Instead, they pay more attention to the emotional value and social significance that these goods can bring.
Against this background, a fake with a low price and almost identical appearance to the original naturally became their first choice. As stated in the text, many people "buy an emotional value, buy a social value".
For them, luxury is not for everyday use, but a symbol of personal status and taste.
In this case, fakes are just as capable of satisfying their needs. What's even more noteworthy is that the high profit margins of up to 650% on fakes undoubtedly provide a great temptation for counterfeiters.
In order to make huge profits, many unscrupulous traders have thrown themselves into the counterfeit manufacturing industry.
As long as there is demand, supply will inevitably follow. Driven by profits, a flood of counterfeits poured into the market like wildfire, exacerbating the chaos. Although the media has repeatedly exposed this phenomenon and the relevant institutions are gradually increasing their supervision, this stubborn disease is still difficult to eradicate.
It has to be admitted that under the combined effect of various factors such as short supply, unique characteristics of luxury goods and huge profit margins, the market for luxury counterfeit goods has developed rapidly and shown a prosperous scene.
This situation not only reflects the psychological needs of consumers themselves, but also highlights the greedy nature of those who make and sell counterfeit goods.
Delving into the root causes of the proliferation of counterfeits in the luxury industry, it is not difficult to see that this is a complex and difficult problem to solve.
First of all, the psychological appeal of consumers themselves is undoubtedly a key factor in the continued prosperity of the counterfeit market. Whether it's to maintain a certain lifestyle or to satisfy vanity, many consumers are choosing to buy counterfeit goods at relatively low prices.
Even if they know that the product in their hands is not genuine, as long as it meets their personal needs, they can't resist the urge to shop.
Secondly, the high profit margins for the production and sale of counterfeit goods are also an important reason for the long-term existence of this chaos. In the face of such attractive profits, it is natural for a large number of unscrupulous merchants to resist the temptation.
Even as regulations continue to intensify, they are still looking for new ways to survive.
What is even more frustrating is that even though the judiciary has taken many measures, it is still difficult to completely solve this problem. Even within well-known luxury brands, there have been scandals of employees counterfeiting core technologies.
This fully proves that the problem of counterfeit goods has penetrated into every link of the entire industrial chain.
For the majority of consumers, in such a complex situation, how to buy the real "genuine" is really a big problem. As the article says, "Buying luxury goods is like a minesweeper, but our consumers do not yet have the corresponding mathematical knowledge to deal with it."
There is no doubt that it is this kind of consumer enthusiasm and the crazy greed of manufacturers that have given rise to the current complex counterfeit chaos! Although the regulatory system has become increasingly stringent, as long as this phenomenon is not substantially improved, the counterfeit problem cannot be completely solved.
Looking back at the development of the luxury industry, it is not difficult to see that the problem of counterfeit goods is not a new thing, but has been deeply rooted in the industry for many years, seriously hindering the healthy development of the entire industry.
From Chinese aunts and the younger generation becoming the dominant force in the domestic luxury market, to the frequent scandals of counterfeit goods, to today's staggering figures of 650% profits on counterfeit goods, all of this reveals a harsh reality: the luxury market has fallen into an endless vicious circle.
In the face of such a chaotic situation, consumers must always maintain a high degree of vigilance. Even if you buy it through regular channels, you can't guarantee that the goods you buy are "genuine".
Even top international brands such as LV and GUCCI have repeatedly broken out scandals selling counterfeit goods, which shows that this problem has become a chronic problem in the industry.
Tracing back to the root causes, it is not difficult to find that the key to this chaos lies in the psychological needs of consumers themselves and the temptation of huge profits from counterfeiting and selling.
For those who can't get rid of the luxury lifestyle, fakes become their only option to maintain their lifestyle. Even if they know that the goods in their hands are not genuine, as long as they can meet their pursuit of quality and temperament, they will not be able to give up.
At the same time, the huge profits of counterfeiting and selling have also made many unscrupulous businesses crazy. In the face of such an attractive reward, it is naturally difficult for them to resist the greedy desire in their hearts.
Even as regulation continues to increase, they continue to seek new ways to survive.
It can be said that this contradictory situation of "where there is demand, there must be supply", is the main culprit that leads to the proliferation of counterfeit goods in the luxury market.
What is even more frustrating is that despite the various measures taken by the government departments, this chaos is still difficult to eradicate. Even within well-known luxury brands, there have been egregious incidents of employees counterfeiting core technologies.
This fully proves that the problem of counterfeit goods has penetrated into every link of the entire industrial chain.
In such a complex and complicated situation, for the majority of ordinary consumers, how to buy the real "authentic" among many products that are difficult to distinguish between authenticity and fake, it is really troublesome for them.