These 4 types of people buy fake luxury goods: why even rich Chinese consumers choose counterfeit brands, and how to stop them
- Brands like Gucci and Louis Vuitton lose millions to counterfeits – why don’t buyers worry about losing face from the social stigma of owning a fake?
- Widely available lower-priced items or diffusion products could give some counterfeit consumers an alternative to brands otherwise out of their financial reach
Fresh media reports of Chinese authorities breaking up counterfeiting operations worth millions of dollars are a stark reminder that the luxury industry faces steep challenges.
Despite significant progress in the fight against counterfeiters, it only takes a few clicks for Chinese consumers to acquire the fake luxury items of their choice. The relative ease of buying and selling counterfeits, and the increased sophistication of their production and distribution, remains a headache for many luxury brands.
While luxury brands try to enhance their desirability, counterfeits erode their brand images. That raises the question: how can luxury brands break this vicious cycle?
Although technology is helping to battle the counterfeit supply, there’s a need to curtail the consumer demand for counterfeits. That is, admittedly, not an easy task. Yet, if the luxury industry can identify who buys counterfeits and uncover their underlying motives, it could help shift consumer sentiment.
One common misconception is the stereotype of a typical counterfeit buyer: they are not a homogeneous group, and counterfeit consumption is driven by varying motives.
The following four profiles provide insights into how luxury brands can prevent fakes from becoming an accepted substitute for authenticity.