This economy is ripe for fake and copycat luxury goods
The first thing to know is that dupes and fakes are different. Fakes are counterfeits, usually with an identifiable label or logo, making them easier to challenge in court. The big problem with fakes is tracking down those responsible. They're particularly pernicious too as they fund organised crime and exploit vulnerable workers.
The escalating cost of genuine luxury goods has also allowed illicit manufacturers to raise their prices, enabling them to invest in better production capabilities. This has led to the rise of so-called 'super-fakes,' which are almost indistinguishable from what they're copying.
When it comes to dupes, the picture is more complicated. They don't pretend to the be real thing; instead they offer a similar but cheaper version. This is what the Lululemon and Costco case is about.
Fashion has always looked for more affordable takes on the hottest items. But more explicit dupes have been legitimised by TikTok influencers focused on saving money. Brands cracking down now face a delicate balance between protecting their intellectual property and alienating consumers. Calling out a copy cat can also give them oxygen. Mentions of Costco specifically alongside Lululemon have risen by 130% this year, according to Launchmetrics, which tracks social media data.
Legally, dupes are complex. They don't have a recognisable logo or symbol that can be challenged. Professor Susan Scafidi, founder and director of the Fashion Law Institute at Fordham Law School, told me that under US law, while there is protection for copyright, patents and trademarks, there is no separate category for design rights, as in Europe. Consequently, Lululemon is pushing under the US legal framework to find a way to protect the actual three dimensional shape of its garments, for example highlighting specific design features such as the placement of seamlines in its jackets and men's ABC Pant. The case could have broader implications for dupe culture. Costco declined to comment and has not filed a response.
Lululemon has been at the forefront of brand protection, for example suing Peloton Interactive Inc. in 2021 over a line of workout clothes that Lululemon said copied its proprietary designs. The two parties settled out of court a year later.
But Lululemon is also under pressure from nimbler rivals such as Alo Yoga and Vuori, as well as changing fashion tastes, which have seen women swap leggings for looser-fitting styles and casual wear inspired more by pajamas than pilates. Analysts have pointed to an increase in discounting at the retailer. Little wonder it's keen to crack down on imitators.
The Canadian company's position could not be more different to that of Hermes International SCA, whose iconic Birkin bag has sparked a raft of dupes.
While Chief Executive Officer Axel Dumas told analysts in February that copies of the Birkin were 'quite detestable,' he also acknowledged that it was 'quite touching' to see social media posts saying 'we respect Hermes, we can't afford it. But in the meantime I feel like dreaming about it.'
Indeed, dupes don't seem to have dented demand for the coveted accessory. A bag that bore an uncanny resemblance to a Birkin was briefly for sale on Walmart's website in December for $78. Dubbed the 'Wirkin,' it quickly sold out. More recently, Philadelphia designer Jen Risk has created the 'Boatkin,' the love child of the Birkin and L.L. Bean's iconic canvas Boat and Tote.
Yet in the first half of this year, Hermes' leather goods and saddlery sales, of which so-called 'quota bags' account for about 60%, according to analysts at Bernstein, outperformed most rivals. The sale of Jane Birkin's original bag for $10 million only adds to the allure. Hermes has also taken legal action to protect its intellectual property in the past.
There's a lesson to be learned from Birkin's multifaceted appeal. Not only is it notoriously hard to get hold of, but it is hand made in Hermes' workshops in France.
Such supply chain integrity is a crucial weapon in fighting fakes. It also underlines why issues such as cashmere maker Loro Piana being placed under court supervision in Italy for alleged poor working practices are so damaging. Sister house Dior faced a similar action last year. These kinds of scandals encourage consumers to question what they're actually paying for. And they make it easier for Chinese factories to claim that they manufacture the goods, even though most luxury items are made in Europe.
LVMH Moet Hennessy Louis Vuitton SE Chief Financial Officer Cecile Cabanis told investors last month that the company, which owns Loro Piana and Dior, had already stepped up checks on manufacturers and would intensify scrutiny of suppliers.
But LVMH and the broader industry must be more vigilant. Because if consumers can't count on their luxury bag being made the right way, why not save thousands of dollars and buy a super-fake?
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Fashion Network
8 hours ago
- Fashion Network
This economy is ripe for fake and copycat luxury goods
Meanwhile, US tariffs threaten to elevate the cost of clothing and cosmetics. Such an environment has opened the way for dupes and fakes. This has been thrown into sharp relief by Lululemon accusing Costco Wholesale Corp. of copying its designs in a lawsuit filed in June. The first thing to know is that dupes and fakes are different. Fakes are counterfeits, usually with an identifiable label or logo, making them easier to challenge in court. The big problem with fakes is tracking down those responsible. They're particularly pernicious too as they fund organised crime and exploit vulnerable workers. The escalating cost of genuine luxury goods has also allowed illicit manufacturers to raise their prices, enabling them to invest in better production capabilities. This has led to the rise of so-called 'super-fakes,' which are almost indistinguishable from what they're copying. When it comes to dupes, the picture is more complicated. They don't pretend to the be real thing; instead they offer a similar but cheaper version. This is what the Lululemon and Costco case is about. Fashion has always looked for more affordable takes on the hottest items. But more explicit dupes have been legitimised by TikTok influencers focused on saving money. Brands cracking down now face a delicate balance between protecting their intellectual property and alienating consumers. Calling out a copy cat can also give them oxygen. Mentions of Costco specifically alongside Lululemon have risen by 130% this year, according to Launchmetrics, which tracks social media data. Legally, dupes are complex. They don't have a recognisable logo or symbol that can be challenged. Professor Susan Scafidi, founder and director of the Fashion Law Institute at Fordham Law School, told me that under US law, while there is protection for copyright, patents and trademarks, there is no separate category for design rights, as in Europe. Consequently, Lululemon is pushing under the US legal framework to find a way to protect the actual three dimensional shape of its garments, for example highlighting specific design features such as the placement of seamlines in its jackets and men's ABC Pant. The case could have broader implications for dupe culture. Costco declined to comment and has not filed a response. Lululemon has been at the forefront of brand protection, for example suing Peloton Interactive Inc. in 2021 over a line of workout clothes that Lululemon said copied its proprietary designs. The two parties settled out of court a year later. But Lululemon is also under pressure from nimbler rivals such as Alo Yoga and Vuori, as well as changing fashion tastes, which have seen women swap leggings for looser-fitting styles and casual wear inspired more by pajamas than pilates. Analysts have pointed to an increase in discounting at the retailer. Little wonder it's keen to crack down on imitators. The Canadian company's position could not be more different to that of Hermes International SCA, whose iconic Birkin bag has sparked a raft of dupes. While Chief Executive Officer Axel Dumas told analysts in February that copies of the Birkin were 'quite detestable,' he also acknowledged that it was 'quite touching' to see social media posts saying 'we respect Hermes, we can't afford it. But in the meantime I feel like dreaming about it.' Indeed, dupes don't seem to have dented demand for the coveted accessory. A bag that bore an uncanny resemblance to a Birkin was briefly for sale on Walmart's website in December for $78. Dubbed the 'Wirkin,' it quickly sold out. More recently, Philadelphia designer Jen Risk has created the 'Boatkin,' the love child of the Birkin and L.L. Bean's iconic canvas Boat and Tote. Yet in the first half of this year, Hermes' leather goods and saddlery sales, of which so-called 'quota bags' account for about 60%, according to analysts at Bernstein, outperformed most rivals. The sale of Jane Birkin's original bag for $10 million only adds to the allure. Hermes has also taken legal action to protect its intellectual property in the past. There's a lesson to be learned from Birkin's multifaceted appeal. Not only is it notoriously hard to get hold of, but it is hand made in Hermes' workshops in France. Such supply chain integrity is a crucial weapon in fighting fakes. It also underlines why issues such as cashmere maker Loro Piana being placed under court supervision in Italy for alleged poor working practices are so damaging. Sister house Dior faced a similar action last year. These kinds of scandals encourage consumers to question what they're actually paying for. And they make it easier for Chinese factories to claim that they manufacture the goods, even though most luxury items are made in Europe. LVMH Moet Hennessy Louis Vuitton SE Chief Financial Officer Cecile Cabanis told investors last month that the company, which owns Loro Piana and Dior, had already stepped up checks on manufacturers and would intensify scrutiny of suppliers. But LVMH and the broader industry must be more vigilant. Because if consumers can't count on their luxury bag being made the right way, why not save thousands of dollars and buy a super-fake?
Fashion Network
8 hours ago
- Fashion Network
This economy is ripe for fake and copycat luxury goods
Meanwhile, US tariffs threaten to elevate the cost of clothing and cosmetics. Such an environment has opened the way for dupes and fakes. This has been thrown into sharp relief by Lululemon accusing Costco Wholesale Corp. of copying its designs in a lawsuit filed in June. The first thing to know is that dupes and fakes are different. Fakes are counterfeits, usually with an identifiable label or logo, making them easier to challenge in court. The big problem with fakes is tracking down those responsible. They're particularly pernicious too as they fund organised crime and exploit vulnerable workers. The escalating cost of genuine luxury goods has also allowed illicit manufacturers to raise their prices, enabling them to invest in better production capabilities. This has led to the rise of so-called 'super-fakes,' which are almost indistinguishable from what they're copying. When it comes to dupes, the picture is more complicated. They don't pretend to the be real thing; instead they offer a similar but cheaper version. This is what the Lululemon and Costco case is about. Fashion has always looked for more affordable takes on the hottest items. But more explicit dupes have been legitimised by TikTok influencers focused on saving money. Brands cracking down now face a delicate balance between protecting their intellectual property and alienating consumers. Calling out a copy cat can also give them oxygen. Mentions of Costco specifically alongside Lululemon have risen by 130% this year, according to Launchmetrics, which tracks social media data. Legally, dupes are complex. They don't have a recognisable logo or symbol that can be challenged. Professor Susan Scafidi, founder and director of the Fashion Law Institute at Fordham Law School, told me that under US law, while there is protection for copyright, patents and trademarks, there is no separate category for design rights, as in Europe. Consequently, Lululemon is pushing under the US legal framework to find a way to protect the actual three dimensional shape of its garments, for example highlighting specific design features such as the placement of seamlines in its jackets and men's ABC Pant. The case could have broader implications for dupe culture. Costco declined to comment and has not filed a response. Lululemon has been at the forefront of brand protection, for example suing Peloton Interactive Inc. in 2021 over a line of workout clothes that Lululemon said copied its proprietary designs. The two parties settled out of court a year later. But Lululemon is also under pressure from nimbler rivals such as Alo Yoga and Vuori, as well as changing fashion tastes, which have seen women swap leggings for looser-fitting styles and casual wear inspired more by pajamas than pilates. Analysts have pointed to an increase in discounting at the retailer. Little wonder it's keen to crack down on imitators. The Canadian company's position could not be more different to that of Hermes International SCA, whose iconic Birkin bag has sparked a raft of dupes. While Chief Executive Officer Axel Dumas told analysts in February that copies of the Birkin were 'quite detestable,' he also acknowledged that it was 'quite touching' to see social media posts saying 'we respect Hermes, we can't afford it. But in the meantime I feel like dreaming about it.' Indeed, dupes don't seem to have dented demand for the coveted accessory. A bag that bore an uncanny resemblance to a Birkin was briefly for sale on Walmart's website in December for $78. Dubbed the 'Wirkin,' it quickly sold out. More recently, Philadelphia designer Jen Risk has created the 'Boatkin,' the love child of the Birkin and L.L. Bean's iconic canvas Boat and Tote. Yet in the first half of this year, Hermes' leather goods and saddlery sales, of which so-called 'quota bags' account for about 60%, according to analysts at Bernstein, outperformed most rivals. The sale of Jane Birkin's original bag for $10 million only adds to the allure. Hermes has also taken legal action to protect its intellectual property in the past. There's a lesson to be learned from Birkin's multifaceted appeal. Not only is it notoriously hard to get hold of, but it is hand made in Hermes' workshops in France. Such supply chain integrity is a crucial weapon in fighting fakes. It also underlines why issues such as cashmere maker Loro Piana being placed under court supervision in Italy for alleged poor working practices are so damaging. Sister house Dior faced a similar action last year. These kinds of scandals encourage consumers to question what they're actually paying for. And they make it easier for Chinese factories to claim that they manufacture the goods, even though most luxury items are made in Europe. LVMH Moet Hennessy Louis Vuitton SE Chief Financial Officer Cecile Cabanis told investors last month that the company, which owns Loro Piana and Dior, had already stepped up checks on manufacturers and would intensify scrutiny of suppliers. But LVMH and the broader industry must be more vigilant. Because if consumers can't count on their luxury bag being made the right way, why not save thousands of dollars and buy a super-fake?
Euronews
5 days ago
- Euronews
Despite tough talk, most Canadian, Mexican goods dodge Trump tariffs
US President Donald Trump raised the tariffs on Canadian products to 35% last week but a key exemption for Canada and Mexico shields the vast majority of goods from the punishing duties. Goods that comply with the 2020 United States-Mexico-Canada Agreement (USMCA) that Trump negotiated during his first term are excluded from the tariffs. The USMCA, which replaced NAFTA in 2020 as the key North American trade agreement, is a comprehensive trade deal designed to dictate the flow of goods and services, strengthen labour and environmental standards, enhance intellectual property and digital trade protections, and set up dispute resolution mechanisms between the three countries. Trump's executive orders setting up tariffs for Canada and Mexico recognise the USMCA, which means that most goods traded between the US, Mexico and Canada continue to be tariff-free, provided they meet rules of origin. According to these rules, certain goods must be either entirely made in Canada or Mexico — not imported from third countries such as the EU and then resold to the US — or have the majority of their composite parts made in one of the two countries. Most Canadian exports reach the US duty-free Canada's central bank says 100% of energy exports and 95% of other exports are compliant with the trade pact. The Royal Bank estimated that almost 90% of Canadian exports appear to have accessed the US market duty-free in April. Canadian Prime Minister Mark Carney said the commitment of the US to the core of the USMCA, reaffirmed again last week, means the average US tariff rate on Canadian goods remains one of its lowest, and over 85% of Canada-US trade continues to be tariff-free. 'Canada is better off than any of the trading partners right now because the Americans appear to be relying as a default on USMCA,' said Flavio Volpe, president of the Automotive Parts Manufacturers' Association. 'That gives them the tough tariff headline but also allows them the access to the stuff they need from us. Because of that we're in a relative better position.' Canadian and Mexican companies can claim preferential treatment under the USMCA based on where the products are made. 'The headline news is 35% tariffs but it's somewhat targeted,' said John Manley, Canada's former industry minister, finance minister, foreign affairs minister and deputy prime minister. Meaning that while a 35% tariff rate on the US' main trading partners is a major deterioration in their economic relationship and weakens what was largely a free trade space between the three countries, only specific industries will be affected. Manley said Canada is doing okay despite the economic uncertainty. 'There is a lot of resilience I'd say. The Canadian economy has done relatively well, better than most of us expected, and remember that there is no tariffs on any of our energy exports," he said. 25% tariffs on Mexican goods target a small slice of trade Trump said last week he would enter into a 90-day negotiating period with Mexico, also one of America's largest trading partners. The current 25% tariff rates are staying in place, down from the 30% he had threatened earlier. But that 25% only applies to the fraction of Mexico's trade with the US that isn't covered by the USMCA. Shortly after speaking with Trump on Thursday, President Claudia Sheinbaum said that within the 'new commercial world order', Mexico was still the best-positioned nation because of the free trade agreement. 'What's within [the USMCA] has no tariff, with the exception of what we already know: autos, steel and aluminium; and what is outside the treaty has 25%,' Sheinbaum said. But Economy Secretary Marcelo Ebrard pointed out that under the USMCA, no tariffs were paid on more than 84% of Mexico's trade with the United States. Most imports from Canada and Mexico are still protected by the USMCA, but the deal is up for review next year. US Commerce Secretary Howard Lutnick said last month that he believes 'the president is absolutely going to renegotiate USMCA". Preserving the free trade pact will be critical for Canada and Mexico. 'It would be an incredible disruption to lose it especially if you lost it to the levels of tariffs Trump is imposing, 30%, 25% or even 20%. You can absorb a single digit tariff level across the board but you can't adjust that kind of increase,' Manley said. More than 75% of Canada's exports go to the US while more than 80% of Mexico's exports go there. Manley said that depending on how the trade war plays out, the risk to the USMCA is very high. 'Uncertainty in business is the enemy of decision making," he said. Charging for access Carney said in a series of recent agreements with other countries that America is, in effect, charging for access to its economy. Manley said the investment thesis for Canada is pretty straightforward as Canada is rich in natural resources, has a skilled labour force, is open to immigration and has unfettered access to the US market, the largest economy in the world. 'If that latter point is no longer the case, we've still got all the others, but we've got to really redevelop the investment thesis for attracting investment to Canada,' Manley said. Trump has some sector-specific tariffs, known as 232 tariffs, that are having an impact. There is a 50% tariff on steel and aluminium imports and a 25% tariff on auto imports, though there is a carve-out for Canadian and Mexican made cars. 'Despite our advantages, certain major Canadian industries are being severely impacted by US trade actions. These strategic sectors include autos, steel, aluminium, copper, pharmaceuticals, semiconductors, and of course, softwood lumber,' Carney said on Tuesday as he announced an aid package for the lumber industry as the US ratches up duties. 'It is clear we cannot count or fully rely on what has been our most valued trading relationship for our prosperity,' he concluded.
