For the past decades, fake luxury goods have been causing a headache for most luxury brands across the world. They have been particularly challenging in China, where both cheap reproductions and high-quality counterfeits have become easily available. This problem has undoubtedly gotten worse with China’s growing e-commerce market.
There are many online published reports about China’s online market and counterfeits which investigate the main causes and effects of this extensive proliferation of fake luxury goods online. The following points are some actions that brands can try to implement to counter-attack this Chinese invasion of luxury goods.
- First, luxury brands must develop a strategy to detect and track the fake goods. It is thus important to carry out an extensive data collection of counterfeit sellers on the Chinese online platforms to respond effectively.
- While focusing all their energies on e-commerce giants like Taobao, Alibaba and Tmall, luxury brands tend to omit social media. These brands should take a multi-platform approach and track down the social media to fight against the advertisement of fake luxury goods.
- For the past few years, there have been numerous Chinese e-commerce and social platforms that have been developing mechanism to allow brands to report counterfeit sales. To be more effective, brands should respond rapidly enough to deter the sellers, meaning both the platform’s reporting mechanism and the brand’s response time must be adequate.
These are some of the important steps that brands can take to tackle this growing issue. Indeed, there are many actions that can be done and undermining this issue of counterfeits will be long. However, this also calls for a response to the online grey market—which is becoming increasingly connected to the online sale of counterfeits.
Elsa TSIA HIN FONG