A 15 Million Won Chanel Bag Bought for Just 130,000 Won... Resale Value Estimated at 8.8 Million Won [The Invasion of Counterfeits] ②

TikTok Live Chanel Bag Purchase Experience
Seller Claims "Parallel Import"... 115 Times Cheaper Than Retail
Secondhand Resale Dealer Appraises at "8.8 Million Won," Then Declares "Unsellable"

Editor's NoteThe global counterfeit market is worth 2,000 trillion won. Fake products have become more sophisticated, and their distribution has grown bolder. It is not only high-end luxury brands that suffer. While consumers remain silent about counterfeit goods, K-brands that have entered the global market are being copied in the same way. Local brokers preempt trademarks, blocking market entry, and companies are frustrated by enormous litigation costs. In the borderless online marketplace, there are limits to crackdowns and monitoring. Asia Economy investigated the explosive growth of the counterfeit market since the COVID-19 pandemic and explored measures to prevent copycat products of K-brands that have made waves in the global market.

"Chanel bag for 130,000 won. A Stussy T-shirt will be included as a free gift."

At around 10 p.m. on the 14th of last month, I joined a live broadcast via the TikTok app and immediately recognized familiar luxury brand logos and bags. In what appeared to be a warehouse, the seller on screen attached number tags to various luxury bags and lined them up neatly on a bookshelf before selling them. Everything from Goyard Saint Louis bags to Louis Vuitton shoulder bags, Celine bucket bags, and Chanel Classic Flap bags was on display. Recently popular products were all gathered in one place. On the screen, there was a notice stating "No exchanges, no refunds, please purchase carefully," along with a KakaoTalk ID and a bank account number.

These are sellers who use various social networking services (SNS) to sell counterfeit goods to viewers. They broadcast simultaneously on YouTube, TikTok, Instagram, and other platforms, communicating with viewers in real time. Their selling methods are cunning. When someone comments that they want a closer look at a product, the seller shows the front and back of the item and instructs viewers to "take a screenshot," then tells them to send the screenshot via KakaoTalk ID.

Once in a one-on-one KakaoTalk chatroom, buyers transfer money to the account number shown during the broadcast and send their name, contact information, address, and T-shirt size to receive delivery via courier. This complex process appears to be designed to evade crackdowns and avoid responsibility in case of problems.

TikTok Live Broadcast: "It's Cheap Because It's Parallel Imported"... Buying a Chanel Bag at 1/115th the Price

During this broadcast, the reporter purchased a bag believed to be a "Chanel Classic Medium Flap Bag." When asked to show the product, the seller moved quickly. The price was 130,000 won-an astonishing 115 times cheaper than the genuine product (which retails for about 15 million won). When the reporter tried to negotiate, the seller offered "free shipping and a Stussy T-shirt as a gift." As the reporter hesitated, some regular viewers joined in, persuading, "You can't get it at this price anywhere else." When asked if it was genuine, the seller replied, "It's a parallel import," and explained the low price by saying, "It's cheap because it's a parallel import."

This day was a special event for reaching 500 subscribers. The seller seemed in high spirits, dancing and giving quizzes during the broadcast to engage with viewers. Some viewers commented, "I made a payment to buy something on TikTok, but I never received the item and was scammed. Sellers are using multiple IDs to commit fraud," while others responded positively, saying, "I like this channel because I can trust it." The total broadcast lasted about 2 hours and 30 minutes. Including the reporter, there were about 10 purchase inquiries that day. The actual number of sales was not disclosed.

The package arrived just two days after ordering. Given the low price, it was expected to be a counterfeit, but since the seller claimed it was a genuine parallel import, there was hope of receiving an SS-grade product.

However, upon opening the package, something unexpected happened. Although a Chanel bag was purchased, the product box and dust bag were from Louis Vuitton. Unlike genuine products, which are meticulously packaged in two or three layers, this item was simply wrapped in a single dust bag. Upon opening the dust bag, the ordered light pink Chanel bag appeared.

At first glance, there was little difference from the genuine product. The logo, chain, buckle, and finishing were identical to the original. Not only was the position of the interior logo the same, but the hologram marking also had a serial number just like the genuine article, and there was no discernible difference in the screw shape on the buckle. However, unlike the genuine product made of pebbled caviar leather, the material felt smooth, and there was a distinctive smell from chemicals released during the production of synthetic leather.

Secondhand Dealer's Appraisal: "8.8 Million Won" ... Then "Not for Sale"

To verify authenticity, the bag was taken to a luxury resale shop for consignment sale. After checking the stitching, wear, and both the interior and exterior, the staff member said, "It's about A-grade (a used item with no signs of use) and could be sold for around 8.8 million won." Another staff member then put on white cotton gloves and checked details such as the internal logo number. He explained, "Before selling, the product must go through a one- to two-week verification process."

Three days after submitting the product, it was declared "not for sale." When asked why, the response was:

"It's an internal business secret, so we can't provide details."

Expert appraisal revealed it was a counterfeit, but it was so meticulously made that anyone but an expert could easily be deceived and sell it as genuine.

<To be continued in Part 3 of "The Invasion of Counterfeits">