First illegal Nike products were intoduced to the market by Nike themselves. It is Nike who contracted manufacturing of their products to subcontractors in Asia who had multiple legal issues. Nike did this for only one reason - more profit. Rest is just a consequence of Nike closing eyes on those legal issues.
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.
Big brands can be held accountable if they commit these crimes and be forced to fix them, but how can anyone hold these fake manufacturers to any sort of labour standard?
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.
I live in central Africa , you have tons of fake sneakers imported here , they are even sold on the pavement by street vendors . A pair a fake new air Jordan is around $10 , I'm just disgusted , there's no more prestige in buying genuine NIKE or any other branded shoes , because people walking around you wear fake cheap ones that is similar to yours
@@tunkunrunkYou do have an advantage though, as originals will last much longer and of course will give you that feeling of superiority you want for wearing an original.
@@tunkunrunk That's what matters mate, you're thinking about what others think way to much. Do you think the people wearing fakes care what people think? You're wearing the real deal, that should be a personal reassurance. Seems to me though, that all you really want is the prestige and flex power. In that regard, you can only help yourself, because people wearing fakes will always be there, especially more so if you live in less fortunate areas.
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?
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.
@@testing6753 What you on about? Profits on clothing are insane, cheaply produced sold expensive. Did you miss the part where they explained shoe manufacturers create scarcity on purpose?
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
As a Chinese, I recently bought a pair of counterfeit new balance shoes. and imo if the counterfeit's appearance is identical to the authentic ones, it's an authentic pair of shoes. No one will take off your shoes and soles on the street to see if the stitches are correct. It's all about appearance.
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
Exactly. Even if we are willing to pay $180 for a pair of shoes companies like Nike make it extremely easy for scalpers with bots to take all the inventory and resell it for $500. It’s unfair to the consumer
@@juanesburbano8372 "It’s unfair to the consumer." Market capitalism doesn't work that way. If the consumer does not think they are worth the money - they simply switch to an alternative product that they see as a better value. You won't see me paying over $100 for a regular pair of shoes as long as there are alternatives that are better values. But I will avoid 'no-name' brands because they are likely not worth the low prices due to low quality. Some people are willing to pay the extra money to buy a status symbol, and if that makes them happy - then that's their decision. And this is the point - people are free to buy whatever they want - as long as they are not getting cheated by a fake item.
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.
Y'all can also buy past models of the shoes or when it's on sales (Like Nike Lebron 19/18's are way cheaper than the 20's), it's cheap and most of it's prices are almost the same with reps. Plus y'all can also get the original tech on them.
The thing that hurt me is. I dont know which counterfitter that recommended in my place. I scare that the quality is way worse than the cheap price it provide.
Retro Jordan reps are often high quality. AJ1s are something these shops can make in their sleep. Now if you're trying to get shoes that came out in the past 5 years you're probably gonna get low quality stuff.
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
@@nonyabiz-es9oxyeah but everyone cares what other people think, I don't care what you say, we all care. And most people's egos won't let them buy a new balance or a Chinese shoe, they want that Nike look and nike name
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!!
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 😂
It actually shows their Hypocrisy, they want most profit, they choose cheap manufacturing but want rich buyers, it's the same process of manufacturing done for a cheap asset Edit : Asset I SAY
Shoes are not just manufactured in China. It doesn’t matter where it’s made. As long as they can get a legit pair, they can tear it up and recreate it exactly. It’s a shoe not some complicated machinery
@@user-lk4jd5yc8d but majority are manufactured for a fraction of the price they get sold for. There are also counterfeit manufactureres in Bangladesh, India and other cheap laber countries the original shoes are made
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.
That's exactly how illiterates talk you don't even know how supply chain,branding and business works .A Pokemon Card doesn't take evn 10 cents to make yet few of them are thousands and millions .Depends on brand history ,name ,supply chain ,supply demand and countless other things.if it's simply expensive don't buy.I never bought a branded item ever and yet i know how this works.Anything you buy isn't actually it's make price ofc.
lol same. Sneaker heads to me are by far the dumbest set of people. It makes no sense. A bunch of suckers falling for obvious gimmicks, their only motivation is to get envied from other suckers.
10:06 - "often the fakes come from the same factory as the genuine" - Therefor why pay extra for the ones sold in a retail store with a crazy price tag added for them? I am of to Reddit for a new pair of sneakers! Thank you The Economist!
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.
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…
Counterfeits exist for one reason: The majority of people are poor or average financially. They cant afford the real prices but they still want to look like they have the real thing.
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 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.
I love my Nikes, pay £65 ish when on sale from £100 ish on average. But man they wear out fast and I don’t even walk much mileage in them. Average weight/height. Adidas always outlast but not as stylish for me
@Rockshy that would probably have a big impact if the production was small but most of these shoes are industrially commercilazed. we are talking on the orders of the millions. This allow big economies of scales not only for production costs but marketing costs. in addition in a lot of cases brands like nike or adidas have been caught exploiting countries in which labour protection is poor if non existant and salaries are extremely low. Even if you add marketing, taxes, design cots and potential shippings costs the overall price of making these shoes is at best 25% of the final price sold in developed countries. This leaves a huge amount of the overall final price depending on the brand's image and not on the quality of the product itself. I would be much more deceived on the producers practices than on the marginal gains that are represented by counterfeiters (this doesnt mean that i approve of counterfeiting practices but if brands want to limit their widespread they shoudl probably lower down prices to match the real quality of their products).
So you want to pretend to be rich by buying the fake product? How about making a point of refusing to wear trainers from the big overblown brand name companies and that way, society could fight back. Instead, you proudly wear the fake brand name, pretending it's legit, making the big brand name more of a draw. You are helping the big brands out by playing the boasting game!
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.
Not really. Gucci at some point in their history almost got broke because of copies. But it really makes no sense to buy expensive stuff when it is all made in sweatshops so you gain bad karma for every purchase
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.
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...
umm while this is true in a sense, but it's not working for those "fashion" brands. theres a lot of product that have great quality, produce with ethics, but people didn't even know they exist. why? because you only create the demands trough strategic marketing, advertisement, startegically pushing it through media channel/touchpoints. they only produce goods with a decent quality. that what most leading brands are doing.
@@bandotzzZThey all produce their clothes in sweatshops so quality is random. One pair of Nike even broke during marathon so what are we talking about? If you really want to show off buy a pug with a high pedigree. Vet will cost a fortune and pugs are dumb but they are cute and don't even need to take long walks.
Absolutely, spot on. Sport within its self has become that way, especially football 3 shirts a season at £100 pounds each only lasting a season, when they used to last 2 I'd rather buy a £20 version online..
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.
@@ieatpeople3159 Well, I never bought shoes off a website. I go to SE Asia and get them there. I see and feel, compare and contrast perhaps hundreds of shoes before purchasing even one.
@@Hook1229 bro in SE Asia we people call that price premium so yes companies has to offer for that price same goes for rich countries like USA where a 20 dollars are cheap and 100 dollars are high price for the brand value.
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.
I reckon that makes no sense: if markets are efficient at allocating, then the originals' prices reflect their exact worth given some supply and demand. The way I see it, generally speaking, counterfeits are a separate market for those who cannot access the legal fashion market.
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 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.
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
Most of the time the issue isn't the retail for example with Nike and Adidas. The issue is that those companies I just mentioned make some of their most hyped releases extremely limited quantities that when their released on their apps bots buy all the stock immediately and then resellers resell them at extortionate prices. This makes a lot of people mad so as a protest to Nike and Adidas for not combating bots, they buy counterfeits or "reps". Resellers and Brands inaction to counter bots are the real problem. Buying at retail price for hyped limited releases would be a blessing for most.
@@ryadhasanahmed5443 Ohh I see, thank you. Though I would say the stupidly high price at retail (in my opinion of course) is still an issue lol. But didn't know that bots (the limited supply) was the main reason people buy counterfeits, thanks.
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.
Only counterfeit manufacturers will say that fakes and authentics come from the same factory. They literally create new and improved batches of fakes over time lol
I bought a fake Nike shoes in 2015 at just 10$. It was almost exact one to one copy. That shoe went on to serve me for 4 years of rugged use when it finally gave away in 2019. Although now prices have risen but you can get similar shoes at 15-20$>
@@NE0C0R7EX i am talking about quality and durability of the fake ones. And they looked exactly same like orignal. You can disagree but for most people orignal shoes are bought for that very reason.
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.
IMO the counterfeit market is booming because brands have gained so much value that simply wearing their logo is an expression of self, status and tribe-belonging. Having grown up in a developing economy myself, it is clear to me that the majority of the world that gets marketed to doesn't have the means to afford originals. But we too want to participate in the world associated with such brands. To someone who doesn't have a lot of money and isn't a sneaker expert, it is almost a no brainer to buy counterfeit. What big brands should be doing to combat counterfitting is making products more affordable and accesible... but that goes against scarcity tactices and hype beast culture so...
Yeah rep manufacturers are simply providing competition. Big companies should stop crying and make a product that would compete with the price range of reps. I think big companies have forgotten how supply and demand works.
@@mater753s agreed. However I would be more inclined to care about them if they were quality? Like there's a difference between expensive because of brand name alone and expensive because they use better materials, superior build etc etc. The only reason I excuse "name brand only" is of there is really not equivalent to the design language of said brand.
The real crime is that when Trump wanted to ban products made by child labour and slavery nike went to the highest court in the land to get guarantees it could continue using slaves
If counterfeits provide insanely more value for money for exponentially less cost, then you should prosecute the makers of the originals for scamming people.
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?
This is simply a natural progression of companies creating artificial demand through the saturated limited-run releases. Consumers respond by purchasing artificial versions.
You are very right and also the media and the culture has adopted that kind of life as the only definition of success so people start building that idea that those items are going to make them finally happy and they are going to have a great life because of that. Not considering all the implications like all the exploited people that manufacture that + the evident ecological impact + consumismo
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. 😂
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.
They use bots to outbid actual buyers so they can horde the shoes then resell them at outrages prices, all while the companies purposely continue to make limited runs knowing full well that the majority of their product is bought up by these people.
This is true. Nike panda dunks was valued at around 150usd during its initial releaese but resellers hoarded everything. They ended up selling it in our area for around 300 usd.
@@les0218 Yup, exactly. However I am glad that the sneaker market is not that great rn. I’ve seen some pretty popular dunks and jordans sitting on shelves at stores like JD and Footlocker. Big W for genuine buyers.
True. Gucci dupes are even made out of better materials. Dupes will be made out of gold while original 9ut of bras. Seems like Gucci turned into Zara when it comes to materials being cheap
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.
By that logic every single company that sells expensive brandname clothing is “responsible” for the counterfeit version of their clothes. That’s absolute BS. There is literally nothing wrong with clothing companies wanting their products to be exclusive and thus exclusively priced, because these are not products you need for your survival and no one is forcing you to buy anything. Your entitlement is transparent and comical
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.
People aren't dying or suffering because they can't buy these sneakers, these aren't food or fuel Calling a legitimate business strategy as "organized crime" is hilarious
@@rickywinataa tell that to the people working 24/7 to make those shoes as a living. These guys died making shoes with below minimum wage, extra working hours, no compensation, and some even lost a leg or arm.
@@matthewgee8122 yep, nike are the absolute Skum of the earth. Its Well documented regarding nike slavery and child labour but most don't care and the sheer number of nike customers who pretend to be against slavery but give nike there money to purchase more slaves is ridiculously high. Really wierd. I won't buy any product that uses slaves or child labour. Electric car owners are the Skum of the earth.
They literally only had a brief spike in crackdown activity during the few months earlier this year before the Beijing Olympics - now it's pretty much back to business as normal besides production slowing due to the lockdowns (really mimicking the supply issues of the luxury brands haha)
Europeans use to counterfeit Chinese porcelain and stole its production method as porcelain is the only ceramic able to withstand boiling water so it was much coveted. Not only that Europeans also conducted industrial espionage to steal Chinese tea plants and tea production methods because they were so obsessed with tea.
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.
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
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
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
The reason why this is happening is because of resellers (air jordans and yeezys for example) If they didnt exist and everyone could buy their shoes from the company there would be no market for these dark markets.
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.
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.
@@もりさまー-g8i Things change pretty quickly once you get outside the big shopping areas of shanghai and beijing. I lived in SH, BJ, Jiangsu, Jiangxi, Shandong, I've traveled to many smaller towns/cities. I have not lived in china since 2019 however, doubt much as changed. 95% is no too high, think about it.. it's China, they make the fakes there. I'm not hating on those guys, I, myself have many pairs of AJs, Max airs that are fake that i brought home.
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.
Yup but why paying 6K for boots made in sweatshops when you could go to an artisan and pay 1K for the same design. Paying the same money for a pug with high certificate would make more sense. Obviously vet would cost fortune but you do it to show off and you get a nice dog. Dumb as it can be but nice
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.
I was in China when the whole thing started in the 2010s. It basically works like this: a Nike-contracted factory will import more materials than it needs, which is normal because sometimes you mess up a pair or two. But they import way more than the regular margin, and they use the rest to produce the ""fakes". But since they don’t have enough plastic labels (the one inside your shoes that tells you the size, which is made elsewhere), they have to fake those. So this is why most authenticators will check the plastic labels first. And as you mentioned, the "reject/defective" ones are also sometimes sold, albeit the factories are required to slice them up to destroy them.
What's so important about sneakers ? People nowadays give major importance to futile objects while not caring about what's substantial to their lives and future
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.
These are not 'excess profits.' This is a company that made smart decisions and is making a product that is in high demand. People are willing to buy them at that price, so both the buyers and sellers are happy. And fakes are almost universally of lower quality than the real high-end product.
for LUXURY goods it looses its appeal if it becomes affordable to the masses. rich people want exclusivity rich people dont to look at an average joe able to buy the watch that the rich people rock with . STATUS SYMBOL .
@@-First-Last Yes. 'high end.' Designer tablet keyboards for Italy are one example. And consumer electronics and accessories are another example. (For example, if you buy "brand new" Microsoft or Apple products on Ebay - at best you're getting refurbished products that are being misrepresented as brand-new. And the accessories (such as power adaptor are counterfeits that don't put out the watts that the real ones do) tend to also be cheap counterfeits. In fact - stay away from Ebay altogether is you want to be sure that you're getting a quality 'name brand' product instead of a cheap knockoff. I keep telling my wife that she should start a You Tube channel that shows people how to detect counterfeit or misrepresented products. About the only way for most people to be sure that they're getting the real thing is to only buy from retailers that are large enough to allow them to buy directly from the factory.
Then later added the organized crime part. Well if there is organized crime involved in the ame factory that the original is made then what exactly is the difference?
'Wealth inequality' is a 'don't look at the man behind the curtain' dodge. It's purpose is to distract you from the things that really do affect you. How much money a "rich" person makes has no bearing on how much money you make. How much money you make is determined completely by the life choices you make. This is the fact that the people screaming about 'wealth inequality' are trying to distract you from. Because as long as you are poor, envious and bitter - the more you will vote Democrat.
I cant believe i used to save up to be able to afford overpriced resale sneakers - I’m so glad i found this amazing hong kong website who does the best quality. Im never so spending more than 150 USD on shoes ever again.
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.
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.
Fake products are for fake people 🤷♂️ + it shows you don’t care about what the Interpol guy at the end was saying about the criminal ties these rep manufacturers have
@@nintendokings people aren't fake, it's that particular persona. Which they choose to seem, If you don't find the original product feasible you must go for something which is, as well as comfortable no matter it's a fake, i had bought a fake reebok shoe 7 years ago, it has been abandoned by me but, goodness is as comfortable as you would expect a real one
I can assure you some counterfeit goods have surpassed the quality of certain brands. Just look at new Nike releases and all the issues their shoes are having with quality, mold, bad material choices and wrong sizes being sent.
@@loves_rapid_development You know you don’t have to resort to an illegal fake if you want something affordable? There are legit options at cheaper price ranges. You know this. The truth is you want the look & the logo of the expensive product, just not the price tag, and don’t care about supporting criminal organisations. That’s why fake products are for fake people.
If they want to control counterfeit they need to stop charging us ridiculous prices. I bought my fakes for 1/4 the real price and NO ONE has noticed. I will continue buying fakes. I don't care about Nike, I care about the shoe.
Yeah I don't get when fanboys feel they have a personal affinity with the company. I don't need to do Nike any favors, I just want to buy myself a cheap shoe. My wants and needs come first before any company. I don't get when fanboys feel like it's their responsibility to become a knight in shining armor for their beloved company.
@@One.Zero.One101 Wearing or using pricey items from "renowned" brands is a badge of honor for many consumers, it gives social status. I'm not excusing them, I also think it's silly.
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.
The world of fashion totally deserves this! They have margin profits of no less than 10 times with products manufactured by people who works 10-12h/day and they cry for counterfeiting? Who cares? Often the products are sneaked out of the same factory which makes the real one, they're the same product which costs much less! They had this coming!
can only be done with easily manufactured products. Can't print an oil painting. Can print a million serigraphs.... Athletic shoes are obviously mass produced, easy to knock-off; only difficulty is the shoe's promotion by athletes.
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
100% correct. Also the technology for their popular lifestyle shoes are the same throughout the years. No reason why the shoes’s retail value should increase.
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/ UA-cam/ 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.
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.
Many original brands became more and more scammy overpriced and the quality isn't much noticeable in comparison to that of counterfeits. To understand how overpriced it is, company could sell less than half of the price, pay their workers a living wage and still be profitable.
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.
Now, it is illegal to create replicas in terms of copyright although with a little design tweak, I guess that could be avoided but it's not only moral reasons. That being said, these companies should not complain about these pitfalls when they went for that pitfalls themselves in the first place which I find absolutely hilarious.
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.
Yes sir I got the reverse mochas and when I went to the outlets and mall I got alot compliments by everyone and one even told me he would buy them from me for 650
Same here. I have 2 LJR Batch AJ 1s (Handcrafted & Smoke Grey/Red) and I pair of OG Low Chicago 1s…I get compliments all of the time… I’m gonna cop the Black Canvas 4’s next month, and the UNC Low SB/OG AJ 1s too.
The problem is the resellers buying all the stock in the retail stores and then charging x5 the price of the original price. Just look at the price of the jordan chicago lost and found on stock x its like 4 times more expensive than buying retail price, that’s why people are buying counterfeit
if only the original and authentic sneaker companies could make their prices affordable for everyone, i think nobody will buy fakes anymore. the greediness for profit of these shoe companies boomeranged on them big time.
No one forces any one to buy Nike or Adidas shoes. Just buy the Chinese shoes without a brand on them. Brands ownership is protected by law and exclusive
We live in a world where bigger thieves call smaller thieves illegal
facts
Well who did you let into the Market.... The one that popularize the counterfit starts with C and ends with A 5 letters
First illegal Nike products were intoduced to the market by Nike themselves. It is Nike who contracted manufacturing of their products to subcontractors in Asia who had multiple legal issues. Nike did this for only one reason - more profit. Rest is just a consequence of Nike closing eyes on those legal issues.
@@tiefblau2780 CANADA
@@homelessguy4395 LoL
If companies are deliberately limiting supply to drive up prices, what did they think would happen?
exactly, it will pop somewhere
if they were at the same price Sketchers most people will not be interested, people want to flex with their expensive/limited sneakers
Facts.
@@MessyPointedBlob they are trying to catchup since it's the "wacky" brand. Artificially increasing the price works on people
Money.
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.
My ex works in a sweatshop with her mother sewing underwear, she was getting about $250 a month before the attempted suicide.
@@nicholas7548 I believe it
A lot of the stuff is hand made in Europe too
It's only crime when it hurts the capitalist overlords
Big brands can be held accountable if they commit these crimes and be forced to fix them, but how can anyone hold these fake manufacturers to any sort of labour standard?
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.
I live in central Africa , you have tons of fake sneakers imported here , they are even sold on the pavement by street vendors . A pair a fake new air Jordan is around $10 , I'm just disgusted , there's no more prestige in buying genuine NIKE or any other branded shoes , because people walking around you wear fake cheap ones that is similar to yours
@@tunkunrunkYou do have an advantage though, as originals will last much longer and of course will give you that feeling of superiority you want for wearing an original.
@@hongkong8907 but you're the only one who know you have genuine ones on feet , counterfeits are so realistic these days
@@tunkunrunk That's what matters mate, you're thinking about what others think way to much. Do you think the people wearing fakes care what people think? You're wearing the real deal, that should be a personal reassurance.
Seems to me though, that all you really want is the prestige and flex power. In that regard, you can only help yourself, because people wearing fakes will always be there, especially more so if you live in less fortunate areas.
@@hongkong8907who cares if they last longer? I can go out and by 10 pairs of fakes and it still wouldn't cost as much as 1 pair if genuine shoes.
Limited product + unreasonable price = crying when someone else making it available.
I hope this never get shut down
Just the need to have humane conditions for workers
Yeah, that's also one of the variable of these destructive cycles
Buy your fakes buddy boy 😂 We see you, we laugh at you. Only your braindead friends don't notice.
🤣
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?
Nailed it 100%.
They just want to protect their organised racket.
There is a difference
Agreed! Why tf are people spending so much money? They love giving their money to rich corporations.
@@vade248721 These should be illegal and the people making them need to be sued to oblivion and jailed with the key thrown away
Perhaps because fakers are free riding as far as marketing and designing is concerned. So.... in my opinion you nailed it like 75%.
Counterfeit goods are a curse for the rich and a blessing for the poor
Why
@@unicorntomboy9736 because a regular dude cant afford 1000 $ shoes
Bruh, even rich people also wears fakes
It's just mostly an issue to some resellers, sneaker heads, Hypebeast, or in sneaker convention
But the sellers become rich, so now blessing again.
@@havencat9337 but why?
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.
Yeah this,.
@@testing6753 Do you think Nike *needs* to made a gross profit of $20 billion every year?
@@anonnymous4684 This is the problem with capitalism in it's current form.
@@testing6753 What you on about? Profits on clothing are insane, cheaply produced sold expensive. Did you miss the part where they explained shoe manufacturers create scarcity on purpose?
1¹¹
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
As a Chinese, I recently bought a pair of counterfeit new balance shoes. and imo if the counterfeit's appearance is identical to the authentic ones, it's an authentic pair of shoes. No one will take off your shoes and soles on the street to see if the stitches are correct. It's all about appearance.
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
You are funding the proceeds of organized crime. Take a bow, my friend.
A shoe is a shoe...I go to Lidl.
Exactly. Even if we are willing to pay $180 for a pair of shoes companies like Nike make it extremely easy for scalpers with bots to take all the inventory and resell it for $500. It’s unfair to the consumer
@@juanesburbano8372 "It’s unfair to the consumer."
Market capitalism doesn't work that way. If the consumer does not think they are worth the money - they simply switch to an alternative product that they see as a better value. You won't see me paying over $100 for a regular pair of shoes as long as there are alternatives that are better values. But I will avoid 'no-name' brands because they are likely not worth the low prices due to low quality.
Some people are willing to pay the extra money to buy a status symbol, and if that makes them happy - then that's their decision. And this is the point - people are free to buy whatever they want - as long as they are not getting cheated by a fake item.
Ad long as resellers continues to rob the regular sneakers lovers, reps will continue to bloom
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.
This is da wae
I love reps financially it's the better choice how ya argue against math 🤣
Y'all can also buy past models of the shoes or when it's on sales (Like Nike Lebron 19/18's are way cheaper than the 20's), it's cheap and most of it's prices are almost the same with reps. Plus y'all can also get the original tech on them.
The thing that hurt me is. I dont know which counterfitter that recommended in my place. I scare that the quality is way worse than the cheap price it provide.
Retro Jordan reps are often high quality. AJ1s are something these shops can make in their sleep. Now if you're trying to get shoes that came out in the past 5 years you're probably gonna get low quality stuff.
"Strong toxic smell..."
She has to have a large hazard pay & a premium health insurance.
👀in uk we have free health care
@@lifeaddict It's not actually free, but paid by taxpayer's pounds.
@@yengsabio5315 rather have my tax be used to pay for my health someday than a bomb dropped in 3rd world country
@@sushitrash4949 As long as you have a trustworthy, properly tax-spending government, paying tax is not an issue.
@@lifeaddict Yeah but the catch is you have to live in the UK 😂
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
The Chinese could just make a really nice shoe that doesn't look exactly like a Nike and sell that for cheaper.... Which you could buy
@@nonyabiz-es9ox Nikie 😉 Neki 😊
@@nonyabiz-es9oxyeah but everyone cares what other people think, I don't care what you say, we all care. And most people's egos won't let them buy a new balance or a Chinese shoe, they want that Nike look and nike name
@@MrDamburger i kinda really like new balance, u hurt my feelings
The authentic sneakers are made in China anyways. The reps (aka counterfeits) are made in the same factories with the same materials.
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!!
Way more than a 2 year wage in many countries.
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 😂
It actually shows their Hypocrisy, they want most profit, they choose cheap manufacturing but want rich buyers, it's the same process of manufacturing done for a cheap asset
Edit : Asset I SAY
They're made in the same factory lol
Shoes are not just manufactured in China. It doesn’t matter where it’s made. As long as they can get a legit pair, they can tear it up and recreate it exactly. It’s a shoe not some complicated machinery
Blueprints are the same, they change the material
@@user-lk4jd5yc8d but majority are manufactured for a fraction of the price they get sold for. There are also counterfeit manufactureres in Bangladesh, India and other cheap laber countries the original shoes are made
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.
Sounds like american dream to me
That's exactly how illiterates talk
you don't even know how supply chain,branding and business works .A Pokemon Card doesn't take evn 10 cents to make yet few of them are thousands and millions .Depends on brand history ,name ,supply chain ,supply demand and countless other things.if it's simply expensive don't buy.I never bought a branded item ever and yet i know how this works.Anything you buy isn't actually it's make price ofc.
@@AmritenduRana31082000 chill dude no need to go all mental with me with some shoes.
@@AmritenduRana31082000 I study logistics and engineering so jokes on u. I know exactly how it works, more than u know haha.
@@GazzaDazzle Well go ahead and demand a refund your college did a horrible job educating you about logistics.
I'm so glad I'm not a so called "Sneaker head", imagine being proudly ripped off by corporations
Oooff
lol same. Sneaker heads to me are by far the dumbest set of people. It makes no sense. A bunch of suckers falling for obvious gimmicks, their only motivation is to get envied from other suckers.
Ikr?!
10:06 - "often the fakes come from the same factory as the genuine" - Therefor why pay extra for the ones sold in a retail store with a crazy price tag added for them? I am of to Reddit for a new pair of sneakers! Thank you The Economist!
how crazy that they can be made in the same factory..
thats copium for people who buy reps
I bought a pair of fake Balenciaga speed trainers and they were made better than the “real” ones.
@@infinxte7710 have fun blowing $200 on shoes instead of something useful
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.
They are selling "bling". Supply has to be limited.
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…
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
If you wear your shoes that won’t happen
Counterfeits exist for one reason:
The majority of people are poor or average financially. They cant afford the real prices but they still want to look like they have the real thing.
And nothing wrong with that
Shoes are shoes
U wear it then its real
@@kyrosite1810 X is X, might as well buy everything fake
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 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.
I love my Nikes, pay £65 ish when on sale from £100 ish on average.
But man they wear out fast and I don’t even walk much mileage in them. Average weight/height. Adidas always outlast but not as stylish for me
100% agree
@Rockshy that would probably have a big impact if the production was small but most of these shoes are industrially commercilazed. we are talking on the orders of the millions. This allow big economies of scales not only for production costs but marketing costs. in addition in a lot of cases brands like nike or adidas have been caught exploiting countries in which labour protection is poor if non existant and salaries are extremely low. Even if you add marketing, taxes, design cots and potential shippings costs the overall price of making these shoes is at best 25% of the final price sold in developed countries. This leaves a huge amount of the overall final price depending on the brand's image and not on the quality of the product itself. I would be much more deceived on the producers practices than on the marginal gains that are represented by counterfeiters (this doesnt mean that i approve of counterfeiting practices but if brands want to limit their widespread they shoudl probably lower down prices to match the real quality of their products).
They may not last the same and then the brand gets a bad name
We need to make replicas more accessible to consumers
They are accesible, ive bought tons
That will be theft from the companies that created the originals.
plenty on the internet. you ain't looking!!
@@edema.3418 and?
@@peyton.simpson got any links for secure websites?
A proud rep user. No way I'm paying a thousand dollars for a shoe.
Yessir
I mean, I like the design. But I like saving hundreds of dollar more.
So you want to pretend to be rich by buying the fake product? How about making a point of refusing to wear trainers from the big overblown brand name companies and that way, society could fight back. Instead, you proudly wear the fake brand name, pretending it's legit, making the big brand name more of a draw. You are helping the big brands out by playing the boasting game!
@@dobythedog When I wear reps, I don't go around telling everyone that I'm wearing original. If they ask, I'll tell them I wear reps.
@ders__2151I can only imagine you having AIDs...
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.
Not really. Gucci at some point in their history almost got broke because of copies. But it really makes no sense to buy expensive stuff when it is all made in sweatshops so you gain bad karma for every purchase
Its the brand value they worry about. If all people wear Nike, then who in the right mind want original and pay more
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.
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...
umm while this is true in a sense, but it's not working for those "fashion" brands. theres a lot of product that have great quality, produce with ethics, but people didn't even know they exist. why? because you only create the demands trough strategic marketing, advertisement, startegically pushing it through media channel/touchpoints. they only produce goods with a decent quality. that what most leading brands are doing.
@@bandotzzZThey all produce their clothes in sweatshops so quality is random. One pair of Nike even broke during marathon so what are we talking about? If you really want to show off buy a pug with a high pedigree. Vet will cost a fortune and pugs are dumb but they are cute and don't even need to take long walks.
thank you
Absolutely, spot on. Sport within its self has become that way, especially football 3 shirts a season at £100 pounds each only lasting a season, when they used to last 2 I'd rather buy a £20 version online..
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.
Brother send me website, i never bought shoes that look nice because they are too expensive and i was made to belive that replicas are terrible
@@ieatpeople3159 Well, I never bought shoes off a website. I go to SE Asia and get them there. I see and feel, compare and contrast perhaps hundreds of shoes before purchasing even one.
@@ieatpeople3159 Vietnam made replicas are just as durable as the original at $10 to 40$😂
@@Hook1229 bro in SE Asia we people call that price premium so yes companies has to offer for that price same goes for rich countries like USA where a 20 dollars are cheap and 100 dollars are high price for the brand value.
My Nike Cortez made in Indonesia literally destroyed within 3 years
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.
Not really when you infringe trademark
@@RavarsenBlogspot trademark is overrated when you are robbing wealth from the poor, capitalism needs to be punished
I reckon that makes no sense: if markets are efficient at allocating, then the originals' prices reflect their exact worth given some supply and demand. The way I see it, generally speaking, counterfeits are a separate market for those who cannot access the legal fashion market.
@@eduardosanmiguel8132 "who cannot access..."
Because?
@@RavarsenBlogspot Trademark is a separate issue from how the market operates.
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 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 have a pair of Abibas, and I’m still wearing it after 3 years, really well-made and resistant 😅
Are you not into Nake?
@@ETS186 bro said nake ☠️☠️
@@ETS186 I am into Vens New Skool.
@@ETS186 nahh man I’m a Pamu guy
@@siberian-coco20 I'm into old balance dad shoes
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
Most of the time the issue isn't the retail for example with Nike and Adidas. The issue is that those companies I just mentioned make some of their most hyped releases extremely limited quantities that when their released on their apps bots buy all the stock immediately and then resellers resell them at extortionate prices. This makes a lot of people mad so as a protest to Nike and Adidas for not combating bots, they buy counterfeits or "reps". Resellers and Brands inaction to counter bots are the real problem. Buying at retail price for hyped limited releases would be a blessing for most.
@Cringe City dhgate reps are usually garbage though, there are better apps or websites to use
@@ryadhasanahmed5443 Ohh I see, thank you. Though I would say the stupidly high price at retail (in my opinion of course) is still an issue lol. But didn't know that bots (the limited supply) was the main reason people buy counterfeits, thanks.
@@ryadhasanahmed5443 Does " "reps" " in your post mean "replicas" ? Not sure.
@@-First-Last Yes, reps is short for replicas
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.
Only counterfeit manufacturers will say that fakes and authentics come from the same factory. They literally create new and improved batches of fakes over time lol
I bought a fake Nike shoes in 2015 at just 10$. It was almost exact one to one copy. That shoe went on to serve me for 4 years of rugged use when it finally gave away in 2019.
Although now prices have risen but you can get similar shoes at 15-20$>
@@schrodinger1811 Irrelevant. Quality and durability is not the reason why those Nikes are super expensive.
@@NE0C0R7EX i am talking about quality and durability of the fake ones. And they looked exactly same like orignal.
You can disagree but for most people orignal shoes are bought for that very reason.
@@schrodinger1811 Nope. No one buys Off White 1s expecting $3,000 worth of leather.
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.
IMO the counterfeit market is booming because brands have gained so much value that simply wearing their logo is an expression of self, status and tribe-belonging. Having grown up in a developing economy myself, it is clear to me that the majority of the world that gets marketed to doesn't have the means to afford originals. But we too want to participate in the world associated with such brands. To someone who doesn't have a lot of money and isn't a sneaker expert, it is almost a no brainer to buy counterfeit. What big brands should be doing to combat counterfitting is making products more affordable and accesible... but that goes against scarcity tactices and hype beast culture so...
Counterfeits is literally the same but cheaper and is a blessing to those who just wanted it
Also blessing the factory who actually made most effort producing it, usually get 0.1% on a $1000 shoes
It being counterfeited doesn't really matter if the quality is actually better, but counterfeited goods in 9 times of of 10 are likely to be worse.
Yeah rep manufacturers are simply providing competition. Big companies should stop crying and make a product that would compete with the price range of reps. I think big companies have forgotten how supply and demand works.
not for electronics
My real Louis wallet has outlasted my friends 3 fake ones
The real crime is the insane markup brands charge for the same shoes.
👍
no it's not - nobody is forcing you buy those "luxury" shoes...
@@mater753s agreed. However I would be more inclined to care about them if they were quality?
Like there's a difference between expensive because of brand name alone and expensive because they use better materials, superior build etc etc.
The only reason I excuse "name brand only" is of there is really not equivalent to the design language of said brand.
The real crime is that when Trump wanted to ban products made by child labour and slavery nike went to the highest court in the land to get guarantees it could continue using slaves
Buying shoes over 100$ is a scam itself
Dennis you intellectual, true as truth(pure)
Not possible to find shoes for less than £100 in the UK
@@Fbs723 yes it is
broke 🫵😹
@@Fbs723you live under a rock
If counterfeits provide insanely more value for money for exponentially less cost, then you should prosecute the makers of the originals for scamming people.
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?
Nike doesn’t care about fakes. it’s simply free advertisements!
I think they would do care. It takes money away from the genuine products
bro really out here defending a billion dollar company that doesnt care about him or anyone else besides their own shareholders 🤡🤡
Simple way to stop counterfeits is
Don't charge too much from a coustomer then the cost of production
This is simply a natural progression of companies creating artificial demand through the saturated limited-run releases. Consumers respond by purchasing artificial versions.
You are very right and also the media and the culture has adopted that kind of life as the only definition of success so people start building that idea that those items are going to make them finally happy and they are going to have a great life because of that. Not considering all the implications like all the exploited people that manufacture that + the evident ecological impact + consumismo
Eye opening video, love this channel it always keeps me on my toes
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. 😂
Quality is often the same. Did you know that Victoria's Secret made bras out of acrylic? That material is toxic and evokes skin allergies.
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.
They use bots to outbid actual buyers so they can horde the shoes then resell them at outrages prices, all while the companies purposely continue to make limited runs knowing full well that the majority of their product is bought up by these people.
This is true. Nike panda dunks was valued at around 150usd during its initial releaese but resellers hoarded everything. They ended up selling it in our area for around 300 usd.
@@les0218 Yup, exactly. However I am glad that the sneaker market is not that great rn. I’ve seen some pretty popular dunks and jordans sitting on shelves at stores like JD and Footlocker. Big W for genuine buyers.
True. Gucci dupes are even made out of better materials. Dupes will be made out of gold while original 9ut of bras. Seems like Gucci turned into Zara when it comes to materials being cheap
I can confirm this @les0218
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.
By that logic every single company that sells expensive brandname clothing is “responsible” for the counterfeit version of their clothes. That’s absolute BS. There is literally nothing wrong with clothing companies wanting their products to be exclusive and thus exclusively priced, because these are not products you need for your survival and no one is forcing you to buy anything. Your entitlement is transparent and comical
You don't expect me to buy a shoe worth 1000$ while there is the same shoe worth 30$
Only shoes worth $1000 are rare or high end fashion brand ... you can get authentic adidas or Nike for cheap on sale
I have Rep - Yeezys , Offwhite dunks . They are great quality. I’m never paying retail again lol
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.
People aren't dying or suffering because they can't buy these sneakers, these aren't food or fuel
Calling a legitimate business strategy as "organized crime" is hilarious
@@rickywinataa tell that to the people working 24/7 to make those shoes as a living. These guys died making shoes with below minimum wage, extra working hours, no compensation, and some even lost a leg or arm.
@@doggos3446 so the same conditions of work that you'd find in the Nike manufacturing factories then? But that's not criminal it's legitimate.
Lies again? Baby FCB
@@matthewgee8122 yep, nike are the absolute Skum of the earth. Its Well documented regarding nike slavery and child labour but most don't care and the sheer number of nike customers who pretend to be against slavery but give nike there money to purchase more slaves is ridiculously high. Really wierd. I won't buy any product that uses slaves or child labour. Electric car owners are the Skum of the earth.
"China cracks down on counterfeits"
When pigs fly 😁😆😅😂🤣
Yeah, as if China truly cares about western copyright laws… China cares about China, that’s it.
@@nintendokings why the actual fck do the western corporations want their products to be made in china, why not made in India or THE STATES itself.
I thought Chinese are smart, why dont they just create their own original brand to compete with western brand. All they do is copy
They literally only had a brief spike in crackdown activity during the few months earlier this year before the Beijing Olympics - now it's pretty much back to business as normal besides production slowing due to the lockdowns (really mimicking the supply issues of the luxury brands haha)
Europeans use to counterfeit Chinese porcelain and stole its production method as porcelain is the only ceramic able to withstand boiling water so it was much coveted. Not only that Europeans also conducted industrial espionage to steal Chinese tea plants and tea production methods because they were so obsessed with tea.
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.
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
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
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
If your using the shoes for fashion then why not counterfeit.
The reason why this is happening is because of resellers (air jordans and yeezys for example)
If they didnt exist and everyone could buy their shoes from the company there would be no market for these dark markets.
the millions of dollars spent on the auction for a pair of sneakers is alarmingly intriguing and distressing for the economy value.
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.
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.
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.
Yess
I'm really curious about what part of China you were teaching in lol. 95% is way too high compared to I what observes.
@@もりさまー-g8i Things change pretty quickly once you get outside the big shopping areas of shanghai and beijing. I lived in SH, BJ, Jiangsu, Jiangxi, Shandong, I've traveled to many smaller towns/cities. I have not lived in china since 2019 however, doubt much as changed. 95% is no too high, think about it.. it's China, they make the fakes there. I'm not hating on those guys, I, myself have many pairs of AJs, Max airs that are fake that i brought home.
The reason why this is possible is because these giant companies charge about 80% over production cost...
5:13 I love the fact that they just kept the IG name and the phone numbers of the sellers in the video 🤣 thanks The Economist
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.
Yup but why paying 6K for boots made in sweatshops when you could go to an artisan and pay 1K for the same design. Paying the same money for a pug with high certificate would make more sense. Obviously vet would cost fortune but you do it to show off and you get a nice dog. Dumb as it can be but nice
Video: Consumer demand, e-commerce, lack of control on supply side
Comments: Corporate greed
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.
I was in China when the whole thing started in the 2010s. It basically works like this: a Nike-contracted factory will import more materials than it needs, which is normal because sometimes you mess up a pair or two. But they import way more than the regular margin, and they use the rest to produce the ""fakes". But since they don’t have enough plastic labels (the one inside your shoes that tells you the size, which is made elsewhere), they have to fake those. So this is why most authenticators will check the plastic labels first. And as you mentioned, the "reject/defective" ones are also sometimes sold, albeit the factories are required to slice them up to destroy them.
*ANYONE KNOW WHAT SHOES ARE THE ONES IN THE THUMBNAIL?*
What's so important about sneakers ? People nowadays give major importance to futile objects while not caring about what's substantial to their lives and future
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.
These are not 'excess profits.' This is a company that made smart decisions and is making a product that is in high demand. People are willing to buy them at that price, so both the buyers and sellers are happy. And fakes are almost universally of lower quality than the real high-end product.
for LUXURY goods it looses its appeal if it becomes affordable to the masses. rich people want exclusivity rich people dont to look at an average joe able to buy the watch that the rich people rock with . STATUS SYMBOL .
@@colincampbell767 “High-end” but literally made in the same factory with the same material. Stop being fooled by name brands and marketing
@@colincampbell767 "High-end" ????
@@-First-Last Yes. 'high end.' Designer tablet keyboards for Italy are one example. And consumer electronics and accessories are another example. (For example, if you buy "brand new" Microsoft or Apple products on Ebay - at best you're getting refurbished products that are being misrepresented as brand-new. And the accessories (such as power adaptor are counterfeits that don't put out the watts that the real ones do) tend to also be cheap counterfeits.
In fact - stay away from Ebay altogether is you want to be sure that you're getting a quality 'name brand' product instead of a cheap knockoff. I keep telling my wife that she should start a You Tube channel that shows people how to detect counterfeit or misrepresented products.
About the only way for most people to be sure that they're getting the real thing is to only buy from retailers that are large enough to allow them to buy directly from the factory.
I love when they start saying where the knockoffs are made, and it's the exact same place where the legit ones are made
Then later added the organized crime part. Well if there is organized crime involved in the ame factory that the original is made then what exactly is the difference?
Shaking my head
@@nusaibahibraheem8183 the only difference is one is sold directly from Nike. The other isn’t.
Is there a correlation between wealth inequality and counterfeit goods share of a market?
'Wealth inequality' is a 'don't look at the man behind the curtain' dodge. It's purpose is to distract you from the things that really do affect you.
How much money a "rich" person makes has no bearing on how much money you make. How much money you make is determined completely by the life choices you make. This is the fact that the people screaming about 'wealth inequality' are trying to distract you from. Because as long as you are poor, envious and bitter - the more you will vote Democrat.
In South East Asia it's true. We can't afford to original thing, so the counterfeit one is acceptable.
I cant believe i used to save up to be able to afford overpriced resale sneakers - I’m so glad i found this amazing hong kong website who does the best quality. Im never so spending more than 150 USD on shoes ever again.
can i ask if it's similar comparison to branded vs. generic drugs?
Even prices of affordable ones, like converse and vans has gone up because of greedy resellers.
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.
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.
The real crime is these brands and celebrities charging insane prices
What type of nikes is the first sneaker in the video ? The all white with the black swoosh
Counterfeit goods may not be better than original, but they are enough to fill the void in my heart
Fake products are for fake people 🤷♂️ + it shows you don’t care about what the Interpol guy at the end was saying about the criminal ties these rep manufacturers have
@@nintendokings people aren't fake, it's that particular persona. Which they choose to seem, If you don't find the original product feasible you must go for something which is, as well as comfortable no matter it's a fake, i had bought a fake reebok shoe 7 years ago, it has been abandoned by me but, goodness is as comfortable as you would expect a real one
I can assure you some counterfeit goods have surpassed the quality of certain brands. Just look at new Nike releases and all the issues their shoes are having with quality, mold, bad material choices and wrong sizes being sent.
@@loves_rapid_development You know you don’t have to resort to an illegal fake if you want something affordable? There are legit options at cheaper price ranges. You know this. The truth is you want the look & the logo of the expensive product, just not the price tag, and don’t care about supporting criminal organisations. That’s why fake products are for fake people.
Poor ppl 😂
If they want to control counterfeit they need to stop charging us ridiculous prices. I bought my fakes for 1/4 the real price and NO ONE has noticed. I will continue buying fakes. I don't care about Nike, I care about the shoe.
Yeah I don't get when fanboys feel they have a personal affinity with the company. I don't need to do Nike any favors, I just want to buy myself a cheap shoe. My wants and needs come first before any company. I don't get when fanboys feel like it's their responsibility to become a knight in shining armor for their beloved company.
Imagine them if they find out you wear a fake pair of shoes lol
@@davidbarth80 What is a fake shoe? If they cover your feet, they're a real shoe.
@@One.Zero.One101 Wearing or using pricey items from "renowned" brands is a badge of honor for many consumers, it gives social status. I'm not excusing them, I also think it's silly.
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.
Never bought fake shoes but then I bought my shoes and clothes in outlet and on clearance. Much cheaper and the colors isn't bad.
The world of fashion totally deserves this! They have margin profits of no less than 10 times with products manufactured by people who works 10-12h/day and they cry for counterfeiting? Who cares? Often the products are sneaked out of the same factory which makes the real one, they're the same product which costs much less! They had this coming!
Would love to see this trend continue & spread.
can only be done with easily manufactured products. Can't print an oil painting. Can print a million serigraphs.... Athletic shoes are obviously mass produced, easy to knock-off; only difficulty is the shoe's promotion by athletes.
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
100% correct. Also the technology for their popular lifestyle shoes are the same throughout the years. No reason why the shoes’s retail value should increase.
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/ UA-cam/ 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.
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.
Many original brands became more and more scammy overpriced and the quality isn't much noticeable in comparison to that of counterfeits. To understand how overpriced it is, company could sell less than half of the price, pay their workers a living wage and still be profitable.
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.
Now, it is illegal to create replicas in terms of copyright although with a little design tweak, I guess that could be avoided but it's not only moral reasons. That being said, these companies should not complain about these pitfalls when they went for that pitfalls themselves in the first place which I find absolutely hilarious.
what are some of those communities, I'm trying to get connected so I can navigate this whole rep space without getting scammed
@@jayj3000 Reddit
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 buy reps all the time and it’s honestly so worth it, they’re practically 1:1 and I don’t break the bank.
Yes sir I got the reverse mochas and when I went to the outlets and mall I got alot compliments by everyone and one even told me he would buy them from me for 650
Same here. I have 2 LJR Batch AJ 1s (Handcrafted & Smoke Grey/Red) and I pair of OG Low Chicago 1s…I get compliments all of the time…
I’m gonna cop the Black Canvas 4’s next month, and the UNC Low SB/OG AJ 1s too.
I got myself Jordan 4 Bred kw batch from CSJ and they are amazing quality and very comfortable. Never again will I spend a cent in shoe stores.
Where is that you guys are getting these from ?
@@spiderpimp33
Which site do you use?
The problem is the resellers buying all the stock in the retail stores and then charging x5 the price of the original price. Just look at the price of the jordan chicago lost and found on stock x its like 4 times more expensive than buying retail price, that’s why people are buying counterfeit
if only the original and authentic sneaker companies could make their prices affordable for everyone, i think nobody will buy fakes anymore. the greediness for profit of these shoe companies boomeranged on them big time.
It's so simple to get rid of counterfeiters...locate manufacturing in home countries, and be contented with smaller profits.
You'd be surprised how much slavery is happening in the western countries, too.
No one forces any one to buy Nike or Adidas shoes. Just buy the Chinese shoes without a brand on them. Brands ownership is protected by law and exclusive
None has to listen to your suggestion either. Their money, their choice.
Haha China copycats go brrrrrrrr
@@wanoroCemengMoney is not the issue, it's their choice.