Counterfeiting and Pricing in China and UK Dissertation - 1

Counterfeiting and Pricing in China and UK - Dissertation Example Counterfeiting a product is a type of cheating the consumers. â€Å"Counterfeiting is such a problem in China that it may drive away some foreign investors that manufacture designer label goods, companies warn. They say that despite efforts by the authorities, they were still losing millions of dollars in revenues because of availability of counterfeit products† (International Management, Phatak, 2006)† (Designer Concern Over Mainland Fakes Threatens Future Investment 2002). Now a day, fashion industry is seen using the counterfeit products on a large scale. More number of designers is using the style and color of the same product which are being designed by the other designers. Girls of young age are attracted towards it, as when different colors emerge of the same design. Such consumers believe that the label name, brand name, and recognizing characteristics of design such as color, logo, outline, and models are very precious. Consumers will have the difficult dilemma whether they use a counterfeit product or an original. Fashion counterfeits may perform as a risk-free test form, make attention between consumers, and create them increase constructive word-of-mouth to other customers. When compared fashionable products to physical appearances, the customers will choose either the counterfeit products or the original one depending on the convenience for shopping, or income as both offer a better appearance irrespective of its product and service quality. "Counterfeiters serve customers who aspire to own luxury goods but who are unable or unwilling to pay for the real thing† ... A greater part of counterfeit commodities bought in the UK are purchased after the importing of those commodities into the country. The majority of clients buys counterfeit products deliberately; while some consumers have been mislead to purchase counterfeits as they supposed were legitimate at the point of sale. 2.3 Mass Production of Counterfeit Products: Products in huge demand can be produced on the basis of the equal or similar features, often enclosed and branded in means to create them indifferent from the existing one. â€Å"The most popular counterfeit market is clothing, followed by shoes, watches, leather goods, and jewelry. Louis Vuitton, Gucci, Burberry, Tiffany, Prada, Hermes, Chanel, Dior, Yves St Laurent, and Cartier are frequently pirated. Knockoffs of fashion brands are usually manufactured in China, South Korea, Taiwan, and South America.† (Ritson 2007). The counterfeit products are then sold through counterpart markets, or even familiarize into the product supply series. Without the expenses of the other similar products, the counterfeits are rated particularly with regard to the competitors. Owing to the viable circumference, in a number of marketplaces in some division of the world, counterfeit goods are faraway more widespread than the previous products. When compared to UK with regard to the counterfeit products, half of the unsafe products come from china. â€Å"Counterfeiting requires advanced and costly production equipment is seen as limiting the number of parties that would engage in infringing activities. For example, the automobiles or products of similar complexity are difficult targets for counterfeiters, even if they can utilize