B.A.F.F.L.E.D. Fashion Law
Will Chinese Tariffs Further Fuel Fakes?
If you've been watching national news lately, you know the president is pushing for tariffs on items imported from China. This has a major impact on local and state governments in America, who rely on Chinese companies for some of their infrastructure items like railcars, for example. Certainly we support domestic jobs and manufacturing, but the reality is, much has moved overseas. These are the cards dealt.
Imposing these tariffs could really hit closer to home--literally, if clothing and beauty items are swept into the list. The likelihood is there. Not only would items like synthetic and human hair be included, but lipstick, shampoos, and other essentials. Consumers will really flock to small business if that becomes the case (which we support!). The tariffs could also have an impact on the creative industry, in further flourishing the counterfeit market. Like the now-shifting market in Iran, the love for high fashion, but barriers to enter the market can call for desperate measures.
Counterfeit luxury items are sold openly in Iran. It's almost a market necessity, as the global economy was long cut off because of international sanctions. Importers have struggled to bring good into the country. Consumers haven't let their wants struggle. Neither have knockoff merchants. As many sanctions have been relaxed over the last couple years, the market is sliding toward change, but not easily. Despite super conservative leadership in Iran, counterfeiters found ways to get consumers what they wanted--even if it meant taking on detested Western ways of loving luxury.
The proposed Chinese tariffs in America could make for a similar situation. Sure, there's already a counterfeit market here, and it's unlikely there won't always be one. But, if brands are cut off in such a way to create burdens consumers aren't used to, counterfeiters will definitely find a way to meet demand--whatever it takes. When it comes to counterfeits in the health and beauty industry, it's more than just bags with questionable logos. Formulas and chemical compounds are at stake. Health is a whole different ballgame.
As hearings continue on this issue in D.C., it is worth keeping an eye on. Will counterfeits be king?
If you've been watching national news lately, you know the president is pushing for tariffs on items imported from China. This has a major impact on local and state governments in America, who rely on Chinese companies for some of their infrastructure items like railcars, for example. Certainly we support domestic jobs and manufacturing, but the reality is, much has moved overseas. These are the cards dealt.
Imposing these tariffs could really hit closer to home--literally, if clothing and beauty items are swept into the list. The likelihood is there. Not only would items like synthetic and human hair be included, but lipstick, shampoos, and other essentials. Consumers will really flock to small business if that becomes the case (which we support!). The tariffs could also have an impact on the creative industry, in further flourishing the counterfeit market. Like the now-shifting market in Iran, the love for high fashion, but barriers to enter the market can call for desperate measures.
Counterfeit luxury items are sold openly in Iran. It's almost a market necessity, as the global economy was long cut off because of international sanctions. Importers have struggled to bring good into the country. Consumers haven't let their wants struggle. Neither have knockoff merchants. As many sanctions have been relaxed over the last couple years, the market is sliding toward change, but not easily. Despite super conservative leadership in Iran, counterfeiters found ways to get consumers what they wanted--even if it meant taking on detested Western ways of loving luxury.
The proposed Chinese tariffs in America could make for a similar situation. Sure, there's already a counterfeit market here, and it's unlikely there won't always be one. But, if brands are cut off in such a way to create burdens consumers aren't used to, counterfeiters will definitely find a way to meet demand--whatever it takes. When it comes to counterfeits in the health and beauty industry, it's more than just bags with questionable logos. Formulas and chemical compounds are at stake. Health is a whole different ballgame.
As hearings continue on this issue in D.C., it is worth keeping an eye on. Will counterfeits be king?
B.A.F.F.L.E.D. Fashion Law
Big Brands Keep Fighting Fakes--
Counterfeiting is about 2% of world trade--equating to about $1trillion, according to the International Chamber of Commerce. Make no mistake, many purchasers of counterfeits were never going to purchase the real thing anyways. But, some were, and got bamboozled. Whether they were looking for the real thing or just something to pass at a quick glance, the harm done by fakes doesn't change. There's a cost far greater than the black market price.
Counterfeits are making waves in the fashion industry and it's nothing good. In recent months, designers have had to step their protection game up in several ways, just to keep the infringers at bay. As reported earlier this week, Christian Louboutin, Jimmy Choo, Celine and others have sought a slew of design patents to protect their creations.
The lack of copyright protection in America makes protection a bit of a challenge. Trade dress, trademark, and patents are heavily depended on, but take some time to secure. Stella McCartney had to sue Steve Madden for infringement on her "Falabella" bag--a bag already holding 2 design patents for its continuous chain design. Tory Burch also came up big recently in fighting for her "Isis Cross" trademark. She won $38.9M in a lawsuit against Lin & J to protect her trademark. Despite claiming victory over YSL, Louboutin is still awaiting trademark validity from the EU. This stems from their 2013 battle with Van Haren infringing on the red soles.
While keeping us showered with designs for the new season, designers have to keep an eye on the counterfeit market. According to NetNames, a London-based brand protection firm, counterfeiting is getting a consistent boost from e-commerce, channeling sales up about 15%. Much of the items are sourced through China--nearly 70%. The raw materials are there. The factories are there. And, the labor is pretty inexpensive. An NYC couple was was just charged with conspiring to traffic counterfeits after being caught with over 130,000 counterfeit items in their rented warehouse. Many of the goods were said to have been sourced from China. It's the largest source, but certainly not the only.
Counterfeiting is about 2% of world trade--equating to about $1trillion, according to the International Chamber of Commerce. Make no mistake, many purchasers of counterfeits were never going to purchase the real thing anyways. But, some were, and got bamboozled. Whether they were looking for the real thing or just something to pass at a quick glance, the harm done by fakes doesn't change. There's a cost far greater than the black market price.