Samsung C&T Overseas Brands
Over 3,000 Counterfeit Posts This Year
'Replica' Similar to Genuine Products
Many Transactions Between Individuals on SNS
Recently Popular Thom Browne, Ami, etc.
Priced at About One-Tenth of Genuine Products
Amazon, Alibaba, Coupang, etc.
Use AI to Monitor Counterfeit Goods
eBay Korea's 'Luxury Authentication Service'
Industry Launches War Against Counterfeits
[Asia Economy Reporter Seungjin Lee] Luxury consumption among the MZ generation (Millennials + Generation Z) has surged significantly, leading to a rapid increase in counterfeit products (fakes). While counterfeit goods in the past mainly consisted of women's bags from brands like Chanel and Louis Vuitton, they are now infiltrating contemporary (semi-luxury) products favored by younger generations.
"We sell mirror-quality products"
According to the fashion industry on the 27th, importers of overseas luxury brands are struggling with the rapidly increasing number of counterfeit goods. Samsung C&T Fashion Division conducted its own monitoring of counterfeit distribution of its products from January to March this year and detected about 700 counterfeit product sales posts related to domestic brands, mainly Beanpole and women's wear, and requested their removal. For overseas brands, over 3,000 counterfeit sales posts were detected during the same period.
Many brands also have parallel-imported clothing being sold, making it difficult to distinguish genuine products from fakes. The surge in 'replicas'?products that copy designs of famous contemporary brands and are briefly sold on open markets?is further complicating matters for fashion companies.
Replica products are often traded between individuals through social media platforms like Instagram. In fact, a replica seller contacted via Instagram shared product details and prices through KakaoTalk conversations. The seller emphasized, "After multiple studies on fabric and sewing work, we produced items indistinguishable from genuine products."
The price of replica products was only about one-tenth that of genuine items. The Thom Browne classic shirt, described as 'mirror-quality' for its near-perfect imitation, was sold for 100,000 KRW. The official price of this product is 730,000 KRW. Stone Island T-shirts, which have recently gained great popularity among teenagers, were sold for 44,000 KRW, one-tenth of the 400,000 KRW retail price. Additionally, many products from brands favored by younger generations such as Ami, Balenciaga, and Maison Kitsun? were also sold.
War against Counterfeits... AI Emerges
Last month, Lotte Department Store's total luxury sales increased by 83% compared to the previous year. Men's contemporary luxury exceeded this with a 96% sales growth rate, marking the emergence of men as major buyers in a luxury market previously dominated by women. As consumers' love for luxury grows, the counterfeit market is also rapidly expanding.
According to the office of Yang Kyung-sook of the Democratic Party, the Korea Customs Service detected 1,475 cases of luxury counterfeit imports from January to August last year. This figure is close to the 1,580 cases detected throughout 2019. The number of counterfeit products detected on domestic online platforms is also increasing annually. According to the office of Lee Kyu-min of the Democratic Party, the Korean Intellectual Property Office cracked down on a total of 8,009 counterfeit sales cases from January to August last year, a 70% increase compared to the same period the previous year.
In response, artificial intelligence (AI) technology to filter counterfeit products distributed on online malls has also emerged. Startup MarkVision is monitoring counterfeit products in collaboration with 25 companies across 10 countries, including Amazon and eBay (USA), Alibaba and Taobao (China), and Coupang and Naver (Korea). Ralph Lauren Korea is also one of its major clients. eBay Korea, which operates Gmarket and Auction, is conducting a 'luxury authentication service.' If customers receive overseas direct purchase products through Gmarket or Auction and apply within 7 days, authentication is performed. If the product is confirmed genuine, a certificate is issued; if counterfeit, customers can receive 200% of the purchase amount back.
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