The Fashion and Luxury Business of China: Counterfeiting Carrington Goins HONR 298-701 April 7, 2009
“The most addictive substance in the world is luxury. Once you have tasted it, nothing else ever tastes as good.” - Sir James Goldsmith
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http://www.youtube.com/watch?v=iIvQjDwofb
So, what is counterfeiting?
The reproduction of luxury goods
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http://www.youtube.com/watch?v=nXGHtkwk
How To Tell If A Bag is Fake •
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What you should look for: - stitching - quality of fabric - embroidery - tags - logo Most fakes are found online and sold on various sites resulting in these sites being sued by big companies Jonathan Moss, the legal counsel for Gucci in the U.S., says that counterfeiting is the biggest problem for Gucci
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http://www.youtube.com/watch?v=gLyNpo7d http://www.youtube.com/watch?v=ZxMhQxbU
Who works to make these counterfeit products? • • • • • • •
Parents forced to send their children to work with increasing school fees Children make up almost 20% of the workforce They work under horrendous conditions and sometimes are injured or die Most receive a fraction of the minimum wage is they are even paid at all Some children are as young as 12 or 13 with shifts that begin as early as 7:00 AM It is illegal for children under the age of 16 to work However, in state schools, as young as 7 year olds work from 7:00 AM to dark in order to fund undersubsidized schools
The Story of Wang Yajuan • • • •
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Began working at the age of 14 at a textile factory in order to help her family pay for her father’s medical bills She worked 7 days a week for at least 12 hours each day She slept in a ramshackle factory dorm with no heat during the winter season She and four roommates lit a charcoal stove one night in hopes of keeping warm while they slept, but were declared dead after being found unconscious from inhaling the charcoal fumes the previous night The factory owner ordered their bodies to be put in coffins and cremated A later investigation showed that two girls were still alive when they had been entombed
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http://www.youtube.com/watch?v=qUkjOqefw
The Statistics • • •
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44.6 million 10 to 14 year olds were working a decade ago according to the International Labour Organization According to a statistic, the economy loses $600 billion a year due to counterfeit and pirated goods Kevin Delli-Colli, deputy assistant director of financial and trade investigations at the U.S. Immigration and Customs Enforcement, said that U.S. businesses alone lose between $200 to $250 billion Two-thirds of fakes are produced in China In 2008, World Luxury Associate stated that China’s luxury market reached U.S. $8 billion, which is 18% of the global luxury market China is expected to be the largest luxury market by 2014 according to the Ministry of Commerce of the People’s Republic of China
China’s Most Luxurious Cities •
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Beijing and Shanghai are becoming the top cities for luxury goods The largest consumer of luxury goods is Japan followed by the U.S. Ernst & Young thinks China will surpass the U.S. within a decade
Beijing’s New Silk Alley Market • • •
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5 stories >1,600 outlets Consists of fake namebrand clothing, leather goods, watches and jewelry Among the most popular brands are: - Burberry - Chanel - Gucci - Louis Vuitton - Prada
Beijing 2008 Luxury Summit
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A conference that focuses on China’s luxury market that focuses on the following topics: - China’s role in the world luxury market - China’s strategy - Interpretation of China’s luxury consumption - What is happening in branding - The magic formula of luxury fashion - Counterfeiting and brand protection in China
Counterfeiting on the Rise • • •
It is illegal to make counterfeit goods in China, but they may be exported It is hard to enforce laws due to a lack of resources Counterfeiting undermines the identity and quality of name brands
References • • • •
http://www.fakesareneverinfashion.com/conte http://www.shemii.com/partner/BJLux2008.pd http://www.wikihow.com/Tell-if-a-Designer-Ba http://www.youtube.com/watch?v= iIvQjDwofbI