Counterfeiting : A Controversial Issue For The Country 's Apparel Industry

As globalisation brings in new and various products, counterfeit goods also spread quickly. This has a negative influence on local retailers and trademark owners by taking away part of their local market share, taking advantage of the designs of a brand’s

In her 2010 TED talk, titled “Lessons from fashion’s free culture”, Johanna Blakely describes how the fashion industry’s lack of copyright and patent protection has allowed it to thrive in the economic market. This is mainly because designers have been able to recycle the same building blocks of fashion to create innovate, utilitarian designs into what we regard as art to adorn ourselves. In this talk, she urges other creative industries to adopt this concept.

This expansion demonstrates how the luxury industry is now run by massive corporations whose focus is only on growth, visibility, brand awareness, advertising, and most importantly, PROFITS! With growth and expansion, has come a decrease in quality and rarity. The luxury garments produced are mostly not handmade but are even outsourced to large factories in places such as China and Turkey. Also, to meet quarterly turnover projections, “designers churn(ed) out increasingly trendy collections of clothes, handbags, and shoes.” (Thomas, Pg. 246) With hundreds of new stores around the globe the surplus of designer labeled merchandise is immense hence, the proliferation of outlet malls.

For years, Louis Vuitton enjoyed high profit margins from the luxury market in Japan until other competitors such as Prada and Gucci entered the market. Counterfeiting also became a threat to the firm’s brand by satisfying consumer demand at lower prices. Other external global environmental problems included highly priced products, limited availability in stores only, and a heavy dependency on the Japanese market (Pearce & Robinson, 2013, p. 14-18). Moreover, “the after-shocks of the global recession were a threat to Louis Vuitton’s luxury business in Japan”, and Japanese women became less interested in the brand’s products (Pearce & Robinson, 2013, p. 14-18). Alternatively, Louis Vuitton could “reinvent itself and regain what used to be its well-attested

Meanwhile, some consumers were also attracted by the counterfeit products, which have the same design and considerable quality. The situation of LV in Japan seems to be fierce, however, with effective solutions, LV can also seize the opportunity to sustain profitability in Japanese market rather than just survive. As it is stated in the case that Japanese consumers had been holding the desire for inexpensive luxury products from Louis Vuitton. Therefore, to solve this problem and attract more customers, LV should strive to make “inexpensive” products by increasing the value of products, lowering the costs and prices, and finally creating high value for the consumers. As the scandal of counterfeit sold on the websites in 2008 led to a decline in the sales of Louis Vuitton products, it can be viewed as a valued opportunity for Louis Vuitton to establish its own business online since it can both add selling channels and empower the company to fight with counterfeiting.

80 billion clothing items are produced every year. About two million tons of clothes is thrown away every year. The clothes often cannot be resold due to lack of quality. Only about 10% of clothes are resold. ¾ of the clothing’s manifested from fast fashion labels will end up in a land fill after a year after it is put out for consumers to buy.

It is impossible to beat a cheap price. In today’s world, finding a sought after item at a dirt cheap price is one the main motivation American’s get in the car and battle the craziness in the mall. And as the basic American human beings that we are, it is never possible for us to be complacent with the amount of stuff we currently have. Eventually, we will come across a friend that has the next must have item that will cause us to run to our local mall and purchase a similar item at the lowest price possible. With all that said, it is no wonder why the industry of fast fashion has taken off over the past decade. Felipe Caro and Victor Martínez-de-Albéniz, researchers for UCLA’s school of supply chain coordination, define fast fashion as “a business model that combines four elements: (i) fashionable clothes mostly for consumers under 40; (ii) affordable prices in the mid-to-low range; (iii) quick response; and (iv) frequent assortment changes”. Retailers like H&M, Forever 21, Target, and Wal-Mart have been able to take this business model and make a fortune. But while all these quick trends and cheap prices are great for the consumer, its cost on the foreign worker and the environment does not go uncovered. In the book Overdressed by Elizabeth Cline, she presents many arguments supporting the claim that fast fashion is unethical based on

The root cause in the Abercrombie and Fitch case was the company’s practice was to focus their recruiting and hiring of a sales persons around their image, which was around the mantra of “an all American Classic look” and they shied away from individuals that did not fit that mold. Due to this behavior, the company was hit with a lawsuit in 2003 that alleged they violated Title VII of the Civil Rights Act of 1964 by placing a targeted focus on their recruiting and hiring that essentially excluded or limited its minority and female workforce population (Wikipedia, 2017).

“Aleah, that is so ugly,” my friends exclaimed as I eagerly pulled out my brand new pants from their perfectly packaged shipping box. “But they’re Michael Kors!” I argued, as though it increased their appeal. The truth was, the price tag read $78.00, and they were completely see through. Within society, there are numerous people who spend thousands of dollars on designer clothing that is not considered attractive street fashion or good quality. Often, the reason clothing is priced highly is because it includes a logo to advertise the brand and proclaim that it is “the cool thing to wear” while pressuring surrounding people to buy from the same designer as an attempt to become cool as well.

On May 30, 2000 The Calvin Klein family filed a lawsuit against Warnaco Group Inc for eighteen counts of trademark infringement, trademark dilution and intentional misrepresentation. Nearly a month later Warnaco answered with a counter suit, denying the major allegations and justifying the dilution to falling within the scope of the two parities licensing agreement. The case study brings forth information regarding fashion retailing, distribution practices and even the licensing practices expected within the marketplace, however as a reader one should keep in mind that during the millennium “licensing

To those who are not familiar with the processes within the fashion industry, this world of style is characterized by a peaceful coexistence between all the stakeholders. To those in the know however, this is far from the truth with the fashion industry. The value of the United Kingdom fashion industry is large contributing to about 20 billion pounds into the country’s economy on an annual basis. To have a better understanding, the contribution made by the fashion industry to the country’s Gross Domestic Product is almost twice that being brought in by car manufacturers which is valued at 10.1 billion so fashion is no doubt a major business and clothing designs one of the core assets. In considering this, it is therefore a surprise that businesses that are operating within this industry within this industry are not given the opportunity to do more to protect the designs that they have. This paper puts forward the assertion that based on the case law of J Choo(Jersey) Limited v Towerstone Limited and Others, the system of intellectual property protection available in United Kingdom law is not fit for use in the fashion industry in its present condition.

The fashion industry is one of the most prevalent and visible forms of influence on today’s society. Billboards, malls, magazines, TV, movies, advertisements, runways, etc. are filled with fashion campaigns usually distributed to make a statement and to influence the consumers. Often times, the fashion industry engages in offensive promotions like romanticizing eating less and the “thigh gap” or producing clothing that has “depression” plastered all over it. One of the most offensive trends of the fashion industry is the use of cultural appropriation to promote their company or clothing. Cultural appropriation is the taking of something produced by members of one culture by members of another culture. The products of that culture usually have a special sacred or cultural significance to them, which is why cultural appropriation is seen as offensive and exploiting rather than appreciated. The public tends to overlook these extreme messages and appropriation from the fashion industry, brushing them off as trendy and ideal. This becomes a problem because the fashion industry’s blatant use of cultural appropriation in editorials and ads influences people to show admiration for products from other cultures yet still remain prejudiced against the people who created and continue to practice that culture.

Consumerism and the effects of branding affect people’s lives. Branding allows consumers to easily identify which products are made by which companies. Yet, the brands create more of an influence on consumer’s lifestyles and in the end decide what kind of consumer that person is. Branding creates a blurred divide in our society. Consumers who are ore likely to purchase the branded products that are associated with better quality and higher prices are put into their own category bucket versus the consumers who choose the cheaper priced products that are made with less quality. When it comes to deciding who you are based off of the products and brands that you associate yourself with, it creates a capital divide in our society. Consumers than associate brands with personal feelings based upon whether or not they associate themselves with those brands. Lives of consumers are heavily influenced. Their lives are worse off when they feel the need to ‘keep up’ with brands in order to feel as if they are portraying themselves in the best light. In a way, this is similar to how all of branding began with livestock. Consumers want to physically brand themselves with specific brands by wearing logos and identifying with a brand. They might not be burning the brands directly onto their skin but they are burning the brands onto their clothes and burning holes in their wallets to keep up with society standards about brands.

One of the biggest driving forces in the fashion industry nowadays is the continuous introduction of new trends and the opportunity for designers to display their creativity. So, when that individuality is stolen or copied from a designer, it can produce uneasy consequences. Known as “design piracy”, this widespread reproduction of designs has actually been around for decades. Not much has been done at a federal level to prevent the moral and economic repercussions that stem from it. However, despite the fact that designers lose both independent recognition and profit for their work, in the long run, fashion piracy actually helps grow the industry by swiftly moving styles through society to make way for the next line of innovative

Finally, LVMH must protect its brand against counterfeit and dilution. With the recent expansion of the internet and globalization, availability of products has grown to new heights. In order to keep the brand management that LVMH desires, it must tightly control the availability so not to dilute the market and lower the perception of their brand. Also with the increased knowledge and resources of counterfeiting, LVMH needs to keep a grasp on illegal goods. Not only are the goods becoming increasingly difficult to distinguish real from fake, but the channels of distribution of counterfeit products have increased. Europe customs believe that 75% of counterfeit luxury goods originated in China or Hong Kong. Online stores such as EBay also have seen a large amount