The curious case of luxury counterfeits

It has always intrigued me why a consumer will spend hard-earned money, and that too, willingly on something that is not authentic? What can be the lure to buy a counterfeit, a fake? How can luxury brands make sensible people so blind that they make a beeline outside offline or online stores for getting their hands on these counterfeits?

Let me give you some salient pointers on luxury counterfeits:

1. Growing at a breakneck speed of 40-45%, the luxury counterfeit market touched $1 billion-mark in 2018.
    
2. There are grades of these luxury counterfeit products and the best ones are called first copy. They are distinctly different from the so-called cheaper version of fakes that are easily available online or offline.
    
3. The two most counterfeited brands are Rolex and Louis Vuitton.
    
4. Some e-commerce sites sell counterfeits declaring them as authentic, at unbelievable discounts. The photographs used in all such cases are illegally taken from the official website of the luxury brand so as to create this myth of authenticity.
    
5. There has been a surge in the growth of counterfeit market with the onset of e-commerce. While earlier these fakes were bought secretly in blind alleys, now they can be shopped from your mobile and delivered at home at your convenience.
    
6. There are some distinct identifiers for all luxury brand goods that help sieve the fakes.

Let me delve a little deeper into this exquisite world of first copies. If you look at a fake Datejust or Day Date Rolex, there will be marked differences that even an untrained eye will be able to spot. But for a first copy, only the expert eyes will be able to spot the differences. For example, a first copy watch will have high-quality steel, sapphire crystal case and precise mechanical movement like the original. The master watchmaker has not only replicated the complication with precision but also kept an eye on the identifiers. In my book 'Dark Luxe' I have shared the story of Master W who has been passing on this talent of fine watchmaking over generations. Now, unfortunately, he has to make first copies but he does it with the same dedication and pride.

By exploring and researching luxury as well as counterfeit markets in Europe, Middle East, South East Asia and India and speaking extensively to the sellers as well as buyers across these markets, I have gathered that there is a huge demand for luxury fakes as they are cheap. Also, the demand for first copies is low across these markets as most consumers, according to these sellers, do not understand the difference and thus can't justify the price differential.

But why buy a fake? Blame it on the branding of these luxury goods. They create an aspiration among the so-called 'have-nots' to own, rather possess these labels, these logos. It gives a sense of entitlement, most buyers said. And they assume that the people they are going to flaunt these labels to also will not be able to figure out whether it is a fake or an authentic. Thus, the objective is to showcase, rather flaunt, to others one's entitlement and purchasing power. And thus, the rise and rise of the counterfeit market.

Another view is that counterfeits give rise to democratisation of luxury. Even the 'have-nots' can now flaunt the labels of the 'haves', albeit the counterfeits, that the former only could aspire for earlier. Even luxury brands are exploiting this sentiment with their 'masstige' category, but that's another story.

The interesting bit is that primary consumers of first-copy luxury goods are not the 'have-nots' but the 'haves'. This is a category which is a heavy consumer of luxury brands and prefers some first-copies on the side. For example, a friend of mine told me that she has to go to three-four parties every night and she can't repeat the brands of her clutch or her stilettos. Thus, she has decided to mix and match originals and first-copies, all for the eyes of the beholder.

However, a fake is a fake is a fake is a fake!

The writer is a luxury commentator and the author of Dark Luxe