The Fashion and Luxury Business of China

8/14/2019 The Fashion and Luxury Business of China

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The Fashion and Luxury Business of

China: Counterfeiting

Carrington GoinsCarrington Goins

HONR 298-701HONR 298-701April 7, 2009April 7, 2009


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The most addictive substance in the world isThe most addictive substance in the world is

luxury. Once you have tasted it, nothing elseluxury. Once you have tasted it, nothing elseever tastes as good.ever tastes as good.

- Sir James Goldsmith- Sir James Goldsmith
http://images.google.com/imgres?imgurl=http://www.kipnotes.com/_1114839_goldsmith_land_pa_300.jpg&imgrefurl=http://www.kipnotes.com/CapitalistsFinanciers.htm&usg=__ZZakTgg_5Juf1M4zvyUQBeublX8=&h=180&w=300&sz=11&hl=en&start=2&um=1&tbnid=zBgs8DyxOyHmeM:&tbnh=70&tbnw=116&prev=/images%3Fq%3DSir%2BJames%2BGoldsmith%26hl%3Den%26sa%3DN%26um%3D1


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http://www.youtube.com/watch?v=iIvQjhttp://www.youtube.com/watch?v=iIvQj
http://www.youtube.com/watch?v=iIvQjDwofbIhttp://www.youtube.com/watch?v=iIvQjDwofbIhttp://www.youtube.com/watch?v=iIvQjDwofbI


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So, what is counterfeiting?

The reproduction of luxury goodsThe reproduction of luxury goods


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http://www.youtube.com/watch?v=nXGhttp://www.youtube.com/watch?v=nXGH
http://www.youtube.com/watch?v=nXGHtkwkKUwhttp://www.youtube.com/watch?v=nXGHtkwkKUwhttp://www.youtube.com/watch?v=nXGHtkwkKUw


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How To Tell If A Bag is Fake

What you should look for:What you should look for:

- stitching- stitching

- quality of fabric- quality of fabric

- embroidery- embroidery- tags- tags

- logo- logo Most fakes are found onlineMost fakes are found online

and sold on various sitesand sold on various sites

resulting in these sites beingresulting in these sites beingsued by big companiessued by big companies Jonathan Moss, the legalJonathan Moss, the legal

counsel for Gucci in thecounsel for Gucci in theU.S., says that counterfeitingU.S., says that counterfeitingis the biggest problem foris the biggest problem for

GucciGucci
http://images.google.com/imgres?imgurl=http://1.bp.blogspot.com/_lTD540C0QFs/RvMUaVy-dGI/AAAAAAAAAko/V2S4agzwO1c/s400/real%2Bfake.jpg&imgrefurl=http://daveclancyfamily.blogspot.com/2007_09_01_archive.html&usg=___HauSE511HCGnXjw2kdNSonaSkI=&h=300&w=400&sz=21&hl=en&start=19&um=1&tbnid=pmcxbBgPq7slvM:&tbnh=93&tbnw=124&prev=/images%3Fq%3Dhow%2Bto%2Btell%2Bif%2Ba%2Bbag%2Bis%2Bfake%26hl%3Den%26sa%3DN%26um%3D1


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http://www.youtube.com/watch?v=gLyNhttp://www.youtube.com/watch?v=gLyN

http://www.youtube.com/watch?v=ZxMhhttp://www.youtube.com/watch?v=ZxMh
http://www.youtube.com/watch?v=gLyNpo7dqCkhttp://www.youtube.com/watch?v=gLyNpo7dqCkhttp://www.youtube.com/watch?v=ZxMhQxbUJ0Ihttp://www.youtube.com/watch?v=ZxMhQxbUJ0Ihttp://www.youtube.com/watch?v=ZxMhQxbUJ0Ihttp://www.youtube.com/watch?v=gLyNpo7dqCk


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Who works to make these

counterfeit products? Parents forced to send their children to work withParents forced to send their children to work with

increasing school feesincreasing school fees Children make up almost 20% of the workforceChildren make up almost 20% of the workforce

They work under horrendous conditions andThey work under horrendous conditions andsometimes are injured or diesometimes are injured or die Most receive a fraction of the minimum wage is theyMost receive a fraction of the minimum wage is they

are even paid at allare even paid at all Some children are as young as 12 or 13 with shiftsSome children are as young as 12 or 13 with shifts

that begin as early as 7:00 AMthat begin as early as 7:00 AM It is illegal for children under the age of 16 to workIt is illegal for children under the age of 16 to work However, in state schools, as young as 7 year oldsHowever, in state schools, as young as 7 year olds

work from 7:00 AM to dark in order to fundwork from 7:00 AM to dark in order to fundundersubsidized schoolsundersubsidized schools


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The Story of Wang Yajuan

Began working at the age of 14 at a textile factory in order toBegan working at the age of 14 at a textile factory in order tohelp her family pay for her fathers medical billshelp her family pay for her fathers medical bills

She worked 7 days a week for at least 12 hours each dayShe worked 7 days a week for at least 12 hours each day She slept in a ramshackle factory dorm with no heat during theShe slept in a ramshackle factory dorm with no heat during the

winter seasonwinter season She and four roommates lit a charcoal stove one night in hopesShe and four roommates lit a charcoal stove one night in hopes

of keeping warm while they slept, but were declared dead afterof keeping warm while they slept, but were declared dead afterbeing found unconscious from inhaling the charcoal fumes thebeing found unconscious from inhaling the charcoal fumes theprevious nightprevious night

The factory owner ordered their bodies to be put in coffins andThe factory owner ordered their bodies to be put in coffins and

crematedcremated A later investigation showed that two girls were still alive whenA later investigation showed that two girls were still alive when

they had been entombedthey had been entombed


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http://www.youtube.com/watch?v=qUkjhttp://www.youtube.com/watch?v=qUkj
http://www.youtube.com/watch?v=qUkjOqefwmkhttp://www.youtube.com/watch?v=qUkjOqefwmkhttp://www.youtube.com/watch?v=qUkjOqefwmk


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The Statistics

44.6 million 10 to 14 year olds were working a decade ago44.6 million 10 to 14 year olds were working a decade agoaccording to the International Labour Organizationaccording to the International Labour Organization

According to a statistic, the economy loses $600 billion a yearAccording to a statistic, the economy loses $600 billion a yeardue to counterfeit and pirated goodsdue to counterfeit and pirated goods

Kevin Delli-Colli, deputy assistant director of financial and tradeKevin Delli-Colli, deputy assistant director of financial and tradeinvestigations at the U.S. Immigration and Customsinvestigations at the U.S. Immigration and CustomsEnforcement, said that U.S. businesses alone lose betweenEnforcement, said that U.S. businesses alone lose between$200 to $250 billion$200 to $250 billion

Two-thirds of fakes are produced in ChinaTwo-thirds of fakes are produced in China In 2008, World Luxury Associate stated that Chinas luxuryIn 2008, World Luxury Associate stated that Chinas luxury

market reached U.S. $8 billion, which is 18% of the global luxurymarket reached U.S. $8 billion, which is 18% of the global luxurymarketmarket

China is expected to be the largest luxury market by 2014China is expected to be the largest luxury market by 2014according to the Ministry of Commerce of the Peoples Republicaccording to the Ministry of Commerce of the Peoples Republicof Chinaof China


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Chinas Most Luxurious Cities

Beijing and ShanghaiBeijing and Shanghaiare becoming the topare becoming the topcities for luxury goodscities for luxury goods

The largest consumerThe largest consumerof luxury goods isof luxury goods isJapan followed by theJapan followed by theU.S.U.S.

Ernst & Young thinksErnst & Young thinksChina will surpass theChina will surpass theU.S. within a decadeU.S. within a decade
http://images.google.com/imgres?imgurl=http://yeahthatskosher.com/wp-content/uploads/2008/12/shanghai2.jpg&imgrefurl=http://yeahthatskosher.com/2008/12/shanghai-china/&usg=__yTUGObrpy-PO0LESiez3cSyiorU=&h=375&w=500&sz=53&hl=en&start=8&um=1&tbnid=bst7Kflf1wY6uM:&tbnh=98&tbnw=130&prev=/images%3Fq%3DShanghai%26ndsp%3D20%26hl%3Den%26sa%3DN%26um%3D1


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Beijings New Silk Alley Market

5 stories5 stories >1,600 outlets>1,600 outlets Consists of fake name-Consists of fake name-

brand clothing, leatherbrand clothing, leathergoods, watches andgoods, watches andjewelryjewelry

Among the mostAmong the mostpopular brands are:popular brands are:

- Burberry- Burberry- Chanel- Chanel

- Gucci- Gucci

- Louis Vuitton- Louis Vuitton

- Prada- Prada


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Beijing 2008 Luxury Summit

A conference that focuses on Chinas luxury market that focuses on theA conference that focuses on Chinas luxury market that focuses on thefollowing topics:following topics:

- Chinas role in the world luxury market- Chinas role in the world luxury market- Chinas strategy- Chinas strategy

- Interpretation of Chinas luxury consumption- Interpretation of Chinas luxury consumption

- What is happening in branding- What is happening in branding

- The magic formula of luxury fashion- The magic formula of luxury fashion

- Counterfeiting and brand protection in China- Counterfeiting and brand protection in China
http://images.google.com/imgres?imgurl=http://www.product-reviews.net/wp-content/userimages/2008/04/beijing-2008-update-nissan-shows-off-teana-and-teana-xv.jpg&imgrefurl=http://www.product-reviews.net/tag/nissan/&usg=__77aM39fSClnr0l4RUvXc6auizgs=&h=330&w=440&sz=20&hl=en&start=19&um=1&tbnid=Qp_uuiOi70JhxM:&tbnh=95&tbnw=127&prev=/images%3Fq%3DBeijing%2B2008%2Bluxury%2Bsummit%26ndsp%3D20%26hl%3Den%26sa%3DN%26um%3D1http://images.google.com/imgres?imgurl=http://www.mpparabia.com/uploads/productLaunch/nl100-omega.jpg&imgrefurl=http://www.mpparabia.com/newsletters/Newsletter16-4-2008--8-27-20.htm&usg=__RfRDVWBBXHpY9jQ1aFcwvZ2S0ww=&h=150&w=300&sz=13&hl=en&start=87&um=1&tbnid=Xiobn3Vv0tLjCM:&tbnh=58&tbnw=116&prev=/images%3Fq%3DBeijing%2B2008%2Bluxury%2Bsummit%26ndsp%3D20%26hl%3Den%26sa%3DN%26start%3D80%26um%3D1


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Counterfeiting on the Rise

It is illegal to make counterfeit goods inIt is illegal to make counterfeit goods inChina, but they may be exportedChina, but they may be exported

It is hard to enforce laws due to a lackIt is hard to enforce laws due to a lackof resourcesof resources

Counterfeiting undermines the identityCounterfeiting undermines the identity

and quality of name brandsand quality of name brands


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References

http://www.fakesareneverinfashion.com/http://www.fakesareneverinfashion.com/

http://www.shemii.com/partner/BJLux20http://www.shemii.com/partner/BJLux20

http://www.wikihow.com/Tell-if-a-Designhttp://www.wikihow.com/Tell-if-a-Design

http://http://www.youtube.com/watch?vwww.youtube.com/watch?v==iIvQjDwofbIiIvQjDwofbI
http://www.fakesareneverinfashion.com/content/pdf/2006.pdfhttp://www.fakesareneverinfashion.com/content/pdf/2006.pdfhttp://www.shemii.com/partner/BJLux2008.pdfhttp://www.shemii.com/partner/BJLux2008.pdfhttp://www.wikihow.com/Tell-if-a-Designer-Bag-Is-Fakehttp://www.wikihow.com/Tell-if-a-Designer-Bag-Is-Fakehttp://www.youtube.com/watch?v=iIvQjDwofbIhttp://www.youtube.com/watch?v=iIvQjDwofbIhttp://www.youtube.com/watch?v=iIvQjDwofbIhttp://www.youtube.com/watch?v=iIvQjDwofbIhttp://www.youtube.com/watch?v=iIvQjDwofbIhttp://www.youtube.com/watch?v=iIvQjDwofbIhttp://www.youtube.com/watch?v=iIvQjDwofbIhttp://www.youtube.com/watch?v=iIvQjDwofbIhttp://www.youtube.com/watch?v=iIvQjDwofbIhttp://www.youtube.com/watch?v=iIvQjDwofbIhttp://www.youtube.com/watch?v=iIvQjDwofbIhttp://www.youtube.com/watch?v=iIvQjDwofbIhttp://www.wikihow.com/Tell-if-a-Designer-Bag-Is-Fakehttp://www.shemii.com/partner/BJLux2008.pdfhttp://www.fakesareneverinfashion.com/content/pdf/2006.pdf

The Fashion and Luxury Business of China

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