Why the counterfeit business is booming 

We live in a world where bigger thieves call smaller thieves illegal

Counterfeit goods are a curse for the rich and a blessing for the poor

The Economist needs to do a 6 part in depth series on how luxury brands pay the people sewing their shoes/clothes in sweatshops peanuts. That type of crime does not seem to be problematic it seems.

The biggest problem is that most sneakers these days are essentially foam (plastic) with a polyester (plastic) upper. These things are dirt cheap to manufacture compared to the past where they were made from leather. Maintaining these high prices whilst using cheaper (plastic) materials has provided huge incentive for the counterfeit market.

The same shoes, made in the same factory, by the same workers, using the same materials, one pair costs $1000, the other pair $29.95. Why are we not prosecuting the confidence tricksters instead of the free marketeers?

If companies are deliberately limiting supply to drive up prices, what did they think would happen?

A proud rep user. No way I'm paying a thousand dollars for a shoe.

As someone who owns 4 pairs of fakes, I don’t own them with the intent to sell. I own them to wear. I’ve saved atleast $2,000 by not having to go through resellers. No one has come up to say there faked, if anything I’ve gotten complimented on them quite often

In an age where multi billion dollar corporations willfully exploit cheap labour in the developing world - often in appalling conditions - simply to increase their profit margins, it's hard to get too worked up about the criminality that counterfeiters may or may not be involved in.

What did they expect? You deliberately limit products to drive up prices and expect us to buy them from scalpers at extortion rates. I’ll buy knockoffs any day

Simple way to stop counterfeits is Don't charge too much from a coustomer then the cost of production

When brands stopped being about quality and started to be about marketing they lost their credibility! If all that a brand stands for is a flashy marketing campaign people will see right through the bs and buy the knockoff which is invariably of equal quality to the branded stuff... Fire your overpaid marketing department and use that money to up your QC and bring manufacturing back to countries that pay a living wage and you may claw back a bit of credibility...

People who buy rep sneakers just don't want to pay these ridiculous resell prices. It's unfair to call it a "black market" people buy em to wear em, and rarely to sell em off as real.

What confuses me is that most of the counterfeits are made in China and yet all major brands still send their designs to China and get their products made there 😂

how crazy that they can be made in the same factory..

Limited product + unreasonable price = crying when someone else making it available. I hope this never get shut down

"Strong toxic smell..." She has to have a large hazard pay & a premium health insurance.

It is more of a crime to charge shoes for such a high price, but nobody is arresting these big companies. Fun fact: shoes in general only cost $30 to manufacture including shipping. But charge hundreds for the brand name.

Resellers played a major role in this. They overcharge so much and resell them, forcing people to look for “fakes” that are cheaper and look/feel really close to the real thing, or even better lol.

As an ordinary costumer I prefer to buy original product when available specialy shoes but I can afford them only in discount seasons because they become out of our price range you cannot expect us to pay couple hundred dollars or euros for a sneaker that will only last couple month. If you really wants to eliminates counterfiets products just sell your products at a reasonable margin that makes counterfiets non profitable. There is no reason to ask for 200 euros price tag that you will sell later at 50-75% discount later and still make profits

I'm so glad I'm not a so called "Sneaker head", imagine being proudly ripped off by corporations

So stop backdooring exclusive shoes to your corporate buddies, influencers, and resellers which is more illegal than buying replicas. Remember the Trophy Room Jordan 1s…

Fun fact: The big brands have off-shore factories in some LDCs or Developing country. Most of the time, the so called "reject/defective" footwear ends up flooding the market in much cheaper prices. Also, the same countries, make shoes from the same material, remove a component or two, and name their shoes as Abibas instead of Adidas or Nikee instead of Nike or simply switch up the logos. The bottom line, people in the first world end up paying wayyyy more in the name of "BRAND", while the material is almost similar.... Not same, but similar.

If the price for Nike shoes and Rolex watches were at the original price and available there would be no need for theses, but these companies have made it so that people buy up all the goods then sell for 5 times the price on the grey market.

Not sure why people collect sneakers. You put it away for 10 years the rubber becomes hard and the glue that bonds the sole falls apart

Buying shoes over 100$ is a scam itself

Not sure how I fell into such topics but it's been interesting to learn about the counterfeit apparel trade and how 3D printers are making near perfect replicas of valuable action figures for the vintage toy collector market.

This video got recommended to me after buying a counterfeit converse high top. It's costs only 10% of what the original price is. It looks durable to me, besides, I will only use it at the gym where it will get abused. I wouldn't wear an authentic converse at the gym

When it comes to Sneakers why Counterfeits/Replicas are being liked or bought is because of the Resellers who jacked up the prices and also the Brand with releasing limited supplies.

Fashion counterfeits exist when the real items price is inflated above what it’s worth. It’s just the free market at work efficiently allocating resources.

the fact is these shoes are produced by the same factories so technically they are the real deal but at a fair price showing the real worth of the shoe, if big corporations want they could sell it at the same price instead they scam us

I don't understand why the huge fashion companies complain about counterfeits. Its free advertisement. Its not like they are loosing valuable costumers. People that buy a fake nike/ dior sneakers for 50 bucks are not financially capable / or very unlikely to buy the real product anyways. What irritates me more is the environmental aspect.

We need to make replicas more accessible to consumers

The ability of counterfetiters to replicate to the closet details a pair of shoes and then sell it at a much cheaper price than the original just shows to what extent brands are over inflating the price of their shoes without providing appropriate quality in return. Im' sorry people shouldn't feel guility for not buying 150 dollars shoes and instead opt for 40 dollar countefeited model that lasts approximately the same.

Eye opening video, love this channel it always keeps me on my toes

Counterfeit products are incredibly cheap, and this could be a major reason this industry may never tumble. Like sometimes if one has broken their phone and can't find enough money to replace an original screen, China will readily export you one at half what the original product costs.

I have a pair of Abibas, and I’m still wearing it after 3 years, really well-made and resistant 😅

What I learned from this video: + People are buying counterfeit goods from Reddit - Some counterfeits go to funding other crimes = Actual brands should lower prices

in the UK the only colours of mens sneakers you can get are blk/wyt/grey - if you want other colours you need to buy female, foreign or fake. i dont even buy nike/puma/adidas anymore! i buy dkny/kors/iceberge/tacchini/versace/hilfiger just to get better colours

It's because the big brands are charging crazy prices for the shoes... most are simply crazy pricing!! £6000 for the Air Jordans is a year's wage in some countries!!

I pick up my Nikes in SE Asia. Cost is from $8 to $20. They're just as well made as the one's in the US that sell for literally hundreds of dollars. Heck, wearing them now, two years old, perfect condition, and counting.

"China cracks down on counterfeits" When pigs fly 😁😆😅😂🤣

I've bought 3 reps of Jordans and honestly, the material are identical or almost the same as retail. Heck, QA is significantly better when buying replicas since you get to decide whether or not the pair of shoes you're getting is up to your standards. You get to choose which batch and factory you're going to buy, and even pick a reputable midman. I wear a pair of replicas that their retail counterpart costs $1000 resell as beaters. No one cares if they're fake or not. 99% of the population aren't sneakerheads. The only difference between reps and retails pairs is that the latter requires you to pay for their brand.

I remember a wise man once told me : " Stop being a walking billboard for the big companies, they pay millions of dollars to put their ads on billboard, and you are doing it for them for free by wearing a t-shirt or a shoe with their brand name on you"

The real crime is the insane markup brands charge for the same shoes.

Nike doesn’t care about fakes. it’s simply free advertisements!

I've recently started watching all these reseller vids and the pricing on some of these shoes they sell is highway robbery, 2,3,4k for some sneakers!!!! My son wanted the latest Jordan 4's Christmas this year but the only place I can get them is through reseller for almost double the retail? Ridiculous

I can see two other problems that weren't mentioned: one, like supermarkets having to bump up the price on all of their stocks to combat losses due to theft, products will get even more expensive. Two, the reduction in innovation - why create new stuffs when your hard work can be copied without putting in any R&D, marketing, patents etc.

Only “sneakerheads” (resellers), will say that fakes are bad quality. Nah, they only say that to get you to buy from them or others who “authenticate” shoes and rip you off. Fakes and authentics are made in the same countries/factories. That strong chemical smell is because they dont let the shoe air out the glue smell.

You don't expect me to buy a shoe worth 1000$ while there is the same shoe worth 30$

I also love how people are overlooking the human trafficking element

Watching this video as my haul is about to arrive today 🤣

Counterfeits is literally the same but cheaper and is a blessing to those who just wanted it

If your using the shoes for fashion then why not counterfeit.

If counterfeits provide insanely more value for money for exponentially less cost, then you should prosecute the makers of the originals for scamming people.

Wait..for me who didn't understood the word counterfeit in first go! Are we talking about "Adibas" versions of "Adidas"?🤣

You can not talk about counterfeit sneakers and resellers but nothing about botting (computer programs that can buy hundreds of sneakers on the drop date). Due to the botting problem, regular consumers can not get the sneakers they want so they have to buy replicas. Since replicas are now indistinguishable from the real ones, some people might decide to go for reps instead of the real one. Nike, Adidas, New Balance and etc create this problem themselves by let the resellers using bot on their site. If this persists, this is the death spiral to real sneakers. Remember, replicas are the symptoms and not the diseases. The greedy companies are the diseases in this situation.

This is simply a natural progression of companies creating artificial demand through the saturated limited-run releases. Consumers respond by purchasing artificial versions.

Nowadays the quality of counterfeit products have significantly improved compared to 20 years ago. More access to materials and technology allowed these company to manufacture them as close as possible to actual products. Dont forget also many variety of option available to buy.

Very insightful as a consumer and a freelance marketer

Here in the Philippines one can buy counterfeit of a popular brand for US$18.00, buy a pair - get two pairs. Even law enforcers buy those.

I remember the Payless advertisement when they prank fashion influencers as they rebrand their shoes to a Luxury item. They can’t even tell the difference between 10 dollar shoes and 500 dollars luxury item. 😂

Whenever I go to Philippines or Thailand, I always pick up a pair of fake Nike. My last pair was the Nike Zoom which cost around $25. I compared my pair the the real Zoom (which was $150) up close, and there was absolutely no difference. At present, my Zoom has lasted over three years, and no issues.

The notion of organised crime is always an interesting one when it comes to trainers. The locations that high quality replicas and official footwear are made is often very close and sourcing of materials almost identical. Certain manufacturers make minimal shoes in production runs to inflate prices. If replicas are made and sold at reasonable prices, the real quetion is who are the organised criminals...Nike, Yeezy, Balanciaga please step forward.

Video: Consumer demand, e-commerce, lack of control on supply side Comments: Corporate greed

can i ask if it's similar comparison to branded vs. generic drugs?

Bot a brand new sneaker n rarely wear them. Been in the tropics, the weather gets really hot here n in less than 3 years, the sole gets hardened n broke into small pieces.

I use to teach university business in China. I would say 95% or higher Nikes students wore were fake. Same was true across the country. Grandmas don't spend $250 USD on Air Maxs.

I wouldn’t really call it an epidemic. As a sneaker head myself I can say the prices of resold shoes is crazy. This is simply finding a need in the market and plugging it. There is no way to regulate the resell sneaker market though stockx has tried but you can see hige differences in the prices of a shoe for different sizes. No one is willing to pay 6K for a shoe that they can get a replica of for 200.

In truth a monopolist has to opt between controlling either price or quantity of his products, but not both. Therefore if they opt for controlling price then its normal that his competitors would creep into his industry by selling a similar product with a slight difference. He would reap windfall gains only in the absence of other competitors. This is the way how the whole devide works. They want too much money by their copyrights. In the medical drugs industry there was a very tough war between the copyright holders and others known as producers of generic drugs which are nearly the same as the original drugs. In court the wisdom of the judges opted in favour of the generic drugs because only this strategy could enable large number of patients of aids to be saved in especially poor countries. Till this day generic drugs are in direct competition with others and are becoming more and more popular in the world over.

What type of nikes is the first sneaker in the video ? The all white with the black swoosh

I love when they start saying where the knockoffs are made, and it's the exact same place where the legit ones are made

Years ago I came across secondary knockoffs, where the counterfeiters had lacked the ability to turn out counterfeit goods. An LV counterfeit of theirs would not pass at Monte Carlo.... but then, their clients would never get there.

*ANYONE KNOW WHAT SHOES ARE THE ONES IN THE THUMBNAIL?*

The biggest driver for counterfeit sneakers is the fact that shoes are made in limited numbers so they “mean more” but that raises the price so much to where people aren’t willing to pay 2x-3x over retail for it.

I honestly wouldn't mind the astronomical prices of these genuine sneakers IF the producers actually distribute the profits from those shoes in a manner that benefits the people working in the lowest chain of production.

One of the major reasons is high prices and mid quality. Nike has been banking on a brand name for years without making any significant innovation. This has given counterfeit market time to perfect their art

Even some nike store owners sell counterfeit products in their stores in some malls in Asia..

the millions of dollars spent on the auction for a pair of sneakers is alarmingly intriguing and distressing for the economy value.

The journalist omits the biggest cause of counterfeiting: excess profits! Most of these shoes cost very little to make and are grossly over priced so it’s no surprise criminals seek a share. Want to get get rid of the criminals? The solution is found in your Economics 101 class notes………remove the barriers to supply created by IP protections. Criminal counterfeiting would stop and consumers would be much better off! If you want to retain IP protections and make excess profits then counterfeiting is the result.

Even prices of affordable ones, like converse and vans has gone up because of greedy resellers.

I tried to buy a pair of genuine sneakers but resellers had bought up every bit of stock and the price more than doubled the original retail price so when I saw counterfeit copies for sale I bought a pair for a fraction of the original price, the problem is supply from manufacturers like Nike.

The shoe industry is the next in line for severe "Uber style" disruption. Just like what happened to the rip-off prescription glasses market of the 1980s-2000s

It doesn't have the same comfortable/breathable/ergonomic/limited edition bullsh*t than those luxury brands but they look like the real deal and works well as a shoeware without that overly expensive tag. With the state of decline in many economies worldwide, counterfiets could keep up with not only the supply & demand, but the buying power of most consumers out there. It also works like how video games does with microtransactions. It creates an illusion of value which makes people happy thinking that they bought an expensive item for bargain.

A lot of the main players recently relocated to Vietnam (from China) to pay workers even less. Balenciaga, among others, have since moved in and found a niche to exploit. They can mass produce complex and high end designer products using the expertise in stitching that would have otherwise gone into abeyance. The same void is what's producing the high end Replicas as the surplus infrastructure/ workforce struggles to diversify. The machine is also moving too fast to pivot in another direction. Trying to shut them down is as futile as cutting weeds, plus it's free advertising, so not a completely worthwhile pursuit. I suspect there is some residual guilt, with a handful of corporations having created the problem in the first place as well. Whilst these type of manufacturers used to often be derided for having subpar and obvious counterfeits, they're now offering comparable products (if not better). They're not just available months in advance, but with more design innovation as well. Shoes with a certain colour pallet are rumoured to be released, mocked up on photoshop, shared online and are in production/ for sale within weeks. Another innovation are those who want sneakers dreamt up by a customiser (modifying real shoes) and there's only one place to get them duplicated and on your feet. These are key USPs that brands can't diversify fast enough to match, at least not on any meaningful scale. They're essentially becoming placeholders responsible for the marketing of their own brand, whilst becoming a parody of their former selves. Reebok and Jordan Brand/ Nike are renowned for this kind of fickle behaviour. However, it's a double sided coin and no publicity is bad publicity. On the flip side this creates a simultaneously counter reliant and self-perpetuating industry, if we treat the sneaker industry as a single entity. Many sneakerheads are indiscriminative of the black market releases and this attitude permeates language and class. The video game industry has made similar strides since the mid 80s and there's a significant overlap between these subcultures. Anime, superheroes and musicians are also well represented in an increasingly homogenised demographic. The perfect storm of social media exposure (Instagram/ Watsapp/ RU-vid/ Reddit), influencers and global commerce only fans the flames. Demand is artificially and abnormally high and the hype train isn't slowing down any time soon.

I miss the days when you could walk to a store look at a wall of sneakers take your time try them on and walk out. Now you need to enter a raffle and win the opportunity to maybe be chosen to buy them What a joke, hence why people are prefering to get reps.

The thing with shoes 👟 whether they are real or fake they get damaged quickly after use compared to other articles of clothing. I do buy used authenticated designer clothing but not shoes as I think it’s nasty to buy used shoes but I’ve seen real Gucci shoes badly beaten with lots of wear and tear so the real deal may not be worth it if they are going to get damaged anyway!

Counterfeit goods may not be better than original, but they are enough to fill the void in my heart

Great editing Tom !

I'm just thankful and I'm sure my parents were happy that I never cared about having "in stuff". My siblings were big on shoes and clothes etc. As an adult I am the same way. Their prices just aren't justified in my eyes. I just want a nice pair of shoes that are cute & comfy for my flat feet and some for running. I bought a cheap off brand shoe off Amazon which I'm sure was made in China and they were the most comfortable shoes and lasted so long. Like I ran miles each day in them & on my feet all day at work. I even threw them in the washer a bunch to see and they freaking bounced back like new.

Well, what do you say about the high pricing by the brand names merely for the names? So these replicas are not totally baseless depending on what angle you look at the issue from.

Would love to see this trend continue & spread.

They're better than the original sometimes and even if they're not. The price is cheap and the quality is worth it for the price. The bigger companies are just emptying our wallets and increasing gap between rich and poor

How many would buy shoes from a well-known brand knowing how, how much it cost and where it is assembled with the imitation ones being assembled the same way, with the same materials but priced way less?

Is there a correlation between wealth inequality and counterfeit goods share of a market?

Extremely interesting and informative.

Any one know the name of the nikes in the title picture? Also at :41

As someone who's been collecting sneakers for almost 30 years, due to GFC a lot of people are trying to find ways to make money when money in the bank doesn't do anything for you. I buy reps because I simply can't buy them at retail or a sensible price. IMHO nothing wrong with buying reps as the money spent on my reps will not be on gens as I just can't paying over retail for them. I see a big issues if people are trying to sell reps as gen, for me that immoral. I belong to a few rep sneakers communities where we try to help each other LC shoes and also report shoes on sites where we know are reps.

We are so sick that company trying to put higher and higher price to everything and in recent years they even try to slap "exclusive",Premium",or whatever it is to make it look or sound premium. I used to look down on counterfit items but they are getting better and with much friendly price than original,i understand why people sometimes choose counterfit items now

I don’t know why they don’t register every shoe, like number tree out 1000 made, each made with its tag and series number so that those 1,000 are numbered, registered as, example: #3 out 1000 in these model. The tag number or the difference made in each shoe must be visible without ruining the design . Maybe, if you return those same shoes you get some sort of compensation (with the tag, or maybe a number underneath and inside a shoe, anything…)