Fashion Counterfeiting

The first question asks, “Do you see a difference between what these companies are doing and the illegal production of counterfeit products that are

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.

Remember that, the next time that you buy that imitation, knock-off pair of sneakers or handbag.

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.

From consumer’s perspective, the motivation of their purchasing high-end products is complicated. According to the report of Mintel (Academic.mintel.com, 2013), which showed that the reason why a large number of customs have purchased luxury merchandise in UK. There were 44 percent of female interviewees and 48 percent of male interviewees bought high-end goods due to the good quality. In addition, 31 percent of men and 18 percent of women consider the sophisticated technique

“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.

Fashion is everything to society and the media. The fashion industry has transformed into a necessity in the life of people. Everyone wants to look good, feel fabulous and feel as if we belong with everyone else. The envy and desire to wear certain things and look a certain way all come, from wearing the latest fashion handbags, accessories, dresses, shoes, and the list goes on. But, when is considering fashion into an individual’s life going too far to the extreme? Many do not consider the whereabouts of fashion materials and how the environment is affected by the mere existence of certain garments. Some may believe these objects grow on trees. But that is clearly not the case. Even though it would be nice. The fashion industry as a

Price is an important factor in Burberry as price affects the value that costumers perceive they get from buying a product (Jobber & Ellis-Chadwick, 2012). Burberry uses competitive pricing similar to its competitors which produces a psychological effect on Burberry customers (Jacobson, n.d). If Burberry for example lowered its price dramatically then customers may believe the quality has decreased and may presume it’s not worthy to be named a luxury brand. However by being expensive it suggest better quality and desire to sustain its customers as well as making there products seem exclusive.

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.

In today’s society, fashion rules the teen and young adult generations. Billions of dollars are spent each year on designer brands such as Gucci, Louis Vuitton, and Off-White. At the same time that these large amounts of money are being spent of materialistic aspects of fashion, people in third world countries are struggling greatly. Instead of money being spent on expensive clothing, it could serve a greater purpose by being donated to countries who are in dire need. Absurd amounts of money in first world countries are spent on designer brands, while third world countries struggle to even get their hands on any clothing.

Typically, these factories are located outside of the United States, and with cheap and readily available labor, the knockoff designs can be created in a matter of hours and shipped to stores months before the original version. These companies are able to replicate the original designs almost perfectly, and for much less money, as well. In turn, chain retailers like Bloomingdale’s, Urban Outfitters, and Forever 21 then purchase hundreds of these clothes and promptly sell them to consumers way before the original designs even have a chance to make their debut (Wilson). The biggest problem with this is that fashion design is an art form in itself, and with duplicates, the creative and original credit of the designers are lost. American consumers can no longer tell what garments in a store are original and which have been duplicated (“Stop Fashion Design Piracy”). From a moral perspective, this is essentially burying the recognition that independent designers deserve for their work.

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

On the other hand, the large market potential has drawn a host of luxury-goods companies to enter the China market, which makes the competition fiercer and fiercer. And it is troublesome for LV that there are plenty of fake goods imitating LV’s style prevailing in China, which are actually not likely to reduce LV’s high-end consumers, but would exert negative influences on consumers’ impression and awareness of LV.