High end fashion houses would have us believe that the sale of cheap knockoff bags at market stalls undermines their bottom lines. However according to a study by Chinese economist Yi Qian, it seems the reverse might be true.
Qian’s preliminary study examined China’s counterfeit market following outbreaks of food poisoning and exploding gas tanks in the country, when enforcement efforts were focused on matters more pressing that fashion copycats. During these periods the fake fashion label factories flourished, but so did sales of the real things.
The study determined that rather than taking sales away from the big fashion names, the counterfeit purses create free advertising for the genuine articles. They remind the world what labels are really popular, and serve as “gateway” accessories for fashion lovers. Carrying a faux Louis Vuitton handbag, the study suggests, only creates a longing for the real thing, especially when the shoddy workmanship fails! In fact, another study by MIT marketing professor Renee Richardson Gosline claimed that more than half of the people who bought a designer replica indulged in the genuine article within a couple of years.
So if the studies hold true, perhaps the Pradas and Guccis of the world shouldn’t be so quick to stem the counterfeit trade. In fact, it may end up doing their businesses more harm than good.
[Source: Slate]
[Image Source: Zizzie Fizz/Flickr]
