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, 1 Oct 2011 @ 11:12am

    Re: Re: Re: Re: Re: Re: Re: Re:

    Paul, it's pretty basic.

    These companies are going from "zero" to "something". Of course they are going to see phenomenal growth amounts, because they are growing a business from nothing.

    None of the reports specifically about China is able to link the knock off sales to increase "real product" sales, because there isn't any that they can find.

    What Mike (and others) are doing is the old game of creating a correlation that cannot be supported.

    Example: Personal auto sales and ownership have also increased dramatically. It could be claimed that the sales of personal cars also spurs on the sales of other luxury goods.

    Also, there has been a significant decrease in the number of cases of burd flu in the last few years. It could be claimed that people not worrying about getting sick are more likely to buy luxury goods.

    See how it works? They are only expressing an opinion, nothing more, based on correlation of data that just doesn't have a proven, solid link.

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