For All The Complaining About Chinese Counterfeits... China Is A Massive Growth Market For Luxury Goods

from the aspirational dept

A few years ago, we noted a study that suggested "counterfeit" goods weren't nearly as big a "problem" as many made it out to be. That's because in a very large percentage of cases, the buyers knew they were buying a counterfeit and did so on purpose because they knew they couldn't afford the real thing. In other words, in those cases, there was no "loss" per se, because the buyer couldn't buy the original at that time. But the really interesting part of the study was the finding that a very large percentage of people who buy counterfeit goods end up buying the real product later. In other words, the counterfeit is a form of marketing.

It appears that may be happening on a large scale in Asia (and China in particular). Despite all the claims that China and other Asian companies are homes to mass counterfeiting, apparently various luxury goods brands are seeing massive uptake and demand in China and across wider Asia. Various luxury goods companies like Prada are announcing record revenue thanks to these countries that are often supposed to be pits of counterfeiting. Perhaps that original study got it right, and lots of folks who used to buy counterfeits are now itching for the real thing.

Filed Under: china, luxury goods, trademark

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  1. identicon
    Anonymous Coward, 30 Sep 2011 @ 9:34am

    Re: Re: Re: Re:

    They are very relevant, because if you don't understand the mentality of the people, you cannot understand why "later" isn't part of the deal, really, and why Mike appears to be trying to (once again) be a pirate apologist.

    If the knock offs are good enough (and many of them are made on the same production lines, or using the same materials and sources for things like logos), there is no reason to buy "the real thing" because nobody can tell.

    I cannot see anywhere in any of these reports that suggests that people "bought knock offs, and then saved up for the good stuff", that seems to be a Techdirt myth (repeated often enough, people like you think it is true). What is more clear is that a sudden rush of wealth has allowed many Chinese people to indulge in "true" luxury goods. The connection of knock off goods as a stepping stone just doesn't seem to exist (except in Mike's head).

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