Recently there has been a scandal in Saudi, over the fact that the authorised dealer of CHANEL in Jeddah was selling fake CHANEL items instead of the real thing. This has caused quite an outrage imagine buying a fake quilted handbag from China , when you thought you were getting the genuine article. I'm sure it is making people think twice of purchasing luxury goods here, but then could it happen anywhere?
The fact of the matter is that fakes are getting better everyday should be a real concern to luxury brands. The counterfeit business seems to be very profitable and since the original articles are made in China, it is easy to see how a thriving counterfeit economy could develop alongside.
The brand name companies, as well as the Chinese understand that there are two distinct markets. The people who buy genuine articles and the people who buy fakes, in certain cases there maybe some overlapping- such as fake buy as a souvenir from China! So the Chinese can comfortably cater to both markets and hence make more money for themselves. There is a huge market withing China for 'copies', there is an entire mall, Silk Alley Market, dedicated to everything fake,and you only have to search for branded items on Google to get an array of sites offering replicas.
I believe the real problem arises when customers are deceived into shelling out the full price for the fake. Luxury brands are also losing out on their exclusive image- you can get LV look alike wallets at almost half the malls in Jeddah!
I don't know if sales of other luxury brands in Jeddah have been affected by this scandal or not, but I think it will some time before anyone makes their way back to CHANEL here- Y'know what they say once bitten-twice shy.
Tell me, have you had any experience with fakes being sold off as the real thing?
What is your opinion on the subject?