According to this article in Slate, when most people think about counterfeits of high end merchandise like handbags, they think of it as robbing the manufacturer of the business they’re entitled to. This is true to some degree. But it assumes the person would buy the purse for $1,300 if she didn’t have the $300 option for a knock-off, which may not be so. But an interesting effect of the fakes is that the represent real advertising for the brand as more of the bags will be around to be noticed and coveted. Also, when the inferior workmanship breaks down in a year or two (as is common), the women who buy them often have become so accustomed to having them that they will buy the real thing. So it’s a form of gateway handbag. In other words, the current system isn’t entirely negative for brands like Prada and Coach. However, it is worth noting, since we’re on the subject, that transportation pipelines for knock-off brands are one of the key reasons that it is easier to distribute illegal drugs and human smuggling. Once you create a distribution network for big, bulky things, it’s easy to add other illegal items to the pathway. So yes, buying knock-offs has a real and substantial cost, even if it isn’t to the manufacturers so much.
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