In the recent past, luxury products were seen as displays of wealth. Today, it could only mean the person knows the right Instagram account offering counterfeit bags and shoes. Such stores have grown by leaps and bounds over recent years, along with the rise in online shopping.
Last year, French luxury products group LVMH and internet search engine Google agreed to work together to fight the online sales of counterfeit goods. The agreement ends nearly a decade of litigation over complaints by LVMH that the Google Adwords keywords service helped counterfeiters sell their products on the back of LVMH brands.
The companies said in a joint statement that they would work together “to develop new ways of engaging consumers online whilst preserving the value of trusted brands and enhancing creativity”, and to use their considerable resources “to tackle the advertising and sale of counterfeit goods online”.
Earlier, LVMH and internet auction site eBay had also reached a similar agreement to end a year-long legal battle over the sale of counterfeit goods.
That’s the technical side of the matter. The reality, however, is a different story. If you simply enter the search term “mirror image bag” in Thai language, links to hundreds of online stores are available for your entertainment.
For those who have never ventured into the world of replicas, here’s a bit of glossary. There are many “grades” of counterfeit products, ranging from the obviously fake “premium” grade to the virtually impossible to tell “1:1” replica. The scale goes like this, AAA, premium, mirror, top mirror (also called 7 stars mirror), high end, and 1:1.
A source, who requested anonymity, said that replicas today are alarmingly convincing. Having worked for a luxury brand for over a decade, she has experienced many headaches stemming from top-notch replicas.
“Many customers have come in to ask our staff to help determine whether the product is real or fake, and sometimes it is almost impossible to tell. Some factories in China today can even produce fake care books and fake receipts to go with the bag,” she said.
Some sneaky customers have even attempted to exchange or return the fake product, and there have been occasions when the staff could not tell that if it was genuine. Some brands have decided to change their return and exchange policy because of this global phenomenon.
Not everyone can afford a designer bag, but when you can carry something that looks almost exactly like a 100,000 baht tote at only a few thousand baht, it can be tempting.
Customers of counterfeit products are not only those who cannot afford the real deal — some also own genuine products.
Suda* is a well-known socialite who is often pictured with a designer bag in her hand. She revealed that some of the bags she carries are not authentic.
“Fake bags today are so good you can’t really tell. Sometimes I would buy a real one and a fake one, then use them alternately, so that my expensive bag does not wear out too soon. I carry the fake one to the supermarket or the beach, and save the real one for social events,” she said.
Panida* has been selling luxury knock-offs online for several years, importing them from China. She has more than 100 customers a month, each of them paying around 3,000 baht per item.
“Most of the shops get their products from China, but some like to claim that they order them from Hong Kong or South Korea because it sounds better. When you say it’s from China, some customers automatically assume the quality is poor. In my experience, Chinese factories make the best fakes,” she said.
Panida estimates that 90% of the counterfeit products sold in Thailand today come from China. The majority of factories are in Guangzhou. Orders and payments can be made online and the products are shipped to Thailand within two weeks. On average, each factory has about 30 workers, producing about 100 bags daily. They are paid a meagre wage of 500-1,000 yuan (2,500-5,000 baht) a month.
“It’s a risky business. There are more and more players today because it is not that difficult,” she said. “Buying fake is nothing new, and I think there will always be a demand for such products. People like to flaunt their wealth on social media today, so I think buying fake is an option for some.” The seismic shift from traditional stores to virtual stores has made it hard for authorities to track down these illegitimate businesses. Online store operators usually hire someone to open an account for them and use an unregistered prepaid mobile number for contact. This means they are almost untraceable.
“You can never tell when you’re in the grey market — things can always change. I have to be very careful. Some sites, when targeted, just close down their account and start afresh with a new name after a few months. I don’t think this business will go away easily,” said the virtual vendor.
*Names have been changed.
