The counterfeiting industry is now a large-scale part with fakes for any luxury brand. Moreover, there is a wide range of quality crafts, ranging from frankly cheap hacks to professional fakes. In addition, only a few people can distinguish a fake from the script and realize that they bought a non-original product. Unfortunately, a visit to a company store cannot always guarantee the purchase of ingenious goods. Today, there is a wide network and an established mechanism for the sale of professional fakes in original dealers around the world.
It brings a significant income for intermediaries since original goods are purchased at wholesale prices but are sold at a higher price on the black market. In addition, counterfeit goods, for the manufacture of which cheap materials and production techniques were used, are sold at a significantly higher cost. All this generates significant income for owners of official resells of expensive luxury brands, while at the same time, only a few can suspect that they have purchased a fake. Thus, the well-established business of counterfeit goods turns part of the official market into a gray area, which is not favorable for both the business as a whole and the economy.
The customers of fake luxury brand shops are usually middle-income people, however, who are fans of one or another luxury mark. In other cases, it may be low- or middle-income people who like to dress fashionably but are unable to purchase expensive items. In any case, counterfeit stores cover a significant part of the customer base since there are fewer people willing to spend large sums on the original than those who want to save money. Speaking about how it can be used to diagnose the health of the strategy of a luxury brand, one can highlight several aspects.
Primarily, a large number of fakes, on the one hand, can harm the brand, and on the other hand, it is an important indicator. Thus, the more fakes of a particular company on the market, the more this company is in demand, which means it is popular. As a rule, the number of people who want to buy fake correlates with the number who want to purchase the original, albeit in different proportions. At the same time, a small number of fakes can signal a drop in the popularity of a product. However, it can also show that the brand has taken effective anti-handicraft measures.
There are several strategies to combat luxury brand counterfeiting. However, it is worth noting that most remain unchecked and unpunished. It is due to legal difficulties in verification and the prevalence of counterfeit goods. However, an effective way can be to mark the original products, which can be applied using ultraviolet light. Further, due to special devices that read ultraviolet, one has the opportunity to verify the authenticity of the goods. It has already been implemented, for example, by many fur coat manufacturers and is a common counterfeit item. Moreover, it is relatively inexpensive since UV is already used in sales.
- A Luxury Purchase is a lengthy Act. Discuss all the steps of a luxury purchase and walk through a purchase of a luxury product done by yourself or someone that you know. (including what brand you were interested in, what codes/elements helped you build the “Dream,” what the reason for such purchase was, etc.)
Buying a luxury brand is a long process that involves several steps. It is worth noting that it is not the purchase itself that is lengthy, but the process from noticing the product to picking it up from the store. Thus, at the first stage, a person usually notices a product through advertising or while already in the store. At this stage, the individual has yet to determine for sure whether or not one will buy this thing; however, it is already a fact. Further, the stage of thinking and making a decision on the purchase of this product takes place. At this phase, all factors influencing a potential purchase are analyzed, such as:
- mood;
- the price of the product;
- store location;
- purchase availability;
- availability of discounts or promotions.
These are the most important factors that significantly influence the decision to purchase an account. If everything goes well, then the potential client will only think for a short time; however, if one or more points fall out, the decision will be made with difficulty. After deliberation, there is a process of trying on or first testing the product. As a rule, this stage does not have a strong influence on the decision since the individual already knows that one will purchase this product. Finally, the final process is the buying stage, which is interesting in terms of reflection.
An example would be my friend buying a luxurious Gucci suit. Thus, at the first stage, one notices the costume due to an advertisement on the Internet. Given that one likes the Gucci company and sportswear, it immediately caught my friend’s eye. After that, despite the fact that the price is high, one noticed that there is a discount on this model. Finally, it turned out that the size suitable for one was in the nearest store, and a decision was made to purchase. As one may notice, all the points listed above are present, which influenced the decision. Further, the fitting stage began in the store, and as already indicated above, it did not significantly influence the decision since one already knew that one would purchase the good. It is worth noting that throughout all the stages, there were reflections on the practicality of this purchase.
However, luxury brands usually use high-quality fabrics, which makes things strong and durable. Thus, the practicality of the purchase was justified, and the stage of purchase itself began. This stage was interesting in terms of reflections and feelings that my friend experienced. Namely, there were not so many joyful emotions but reflections about the expediency of this purchase. Doubts arose, which significantly intensified after the moment of paying for the costume, which is explained by the psychological phenomenon of reducing the balance. Namely, when paying with a card, a person experiences an outflow of the hormone of joy; however, it happens quickly. Ultimately, my friend was happy with the purchase and enjoyed the suit for a long time, which made him feel more confident and satisfied.
Reference
Massi, M., & Turrini, A. (2020). The artification of luxury fashion brands: Synergies, contaminations, and hybridizations. Springer Nature.