Counters Still Do Not Support The Inspection Of LV, Chanel And Other Luxury Goods.

Recently, a number of internationally renowned luxury brands have launched a wave of counterfeiting in China.

Just past July, only

The giant French Louis Weedon Marley Siti company (hereinafter referred to as LV) brought 3 big markets and more than 30 self-employed owners to court in Nanjing and Hefei, and each claimed 500 thousand yuan, with a total sum of more than 20 million yuan.

Why are the "luxury" crocodiles "less" small businesses? Are they considering whether they are fighting for the protection of consumers' rights or interests? Otherwise, reporters have conducted interviews in recent days.

Concentrated counterfeiting

In early July this year, LV will fashion Xinjiekou in Nanjing, Jiangsu.

The owner of Tao Tao lane, who was suspected of selling fake LV products, went to court.

Recently, the case was formally opened, and LV filed a claim of 700 thousand yuan, including 500 thousand yuan in compensation for economic losses and 200 thousand yuan in attorney fees and pportation expenses.

In fact, since July, LV has brought 3 big markets and more than 30 self-employed individuals to court in Nanjing and Hefei.

The high-profile anti fake operation has made LV the focus of public opinion.

As a matter of fact, it is not only the recent bugle call against the Chinese market.

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In June, Hermes (Hermes) sued a Chinese factory in Manhattan to illegally copy its trademark and copy its products, and finally won a compensation of 100 million dollars. The company also claimed that about 80% of the Hermes products sold on China's Internet channels were counterfeits. In May this year, the federal court of Manhattan awarded a judgment of $100 million on the sale of counterfeit products and trademark infringement cases by BurberryLtd. (Bo Baili) to China website. After that, crystal maker Swarovski (SWAROVSKI) also publicly accused the Jingdong mall of selling the brand's products without authorization.

The Coach (Kou Chi) company has set up a full-time anti-counterfeiting department in the main markets, including China, and specializes in finding fake goods and safeguarding its rights in the market.

Suspected speculation

It is understood that the LV company launched a number of counterfeiting operations in Nanjing, first sent to buy fake LV package, and then sued the dealer for compensation.

Throughout the process, LV companies invited notaries to carry out together.

Wang, who is suspected of selling fake LV bags, said that when the LV company came to buy fake packages, she had pferred to the nail shop, and sold the only stock only when someone specifically asked, and the profit was only a few hundred dollars, not a long-term infringement.

Nanjing Tao Tao lane management side in an interview with the media also said that the two time LV shop to buy fake goods is "fishing" type of evidence, so LV also bears the responsibility.

During the interview, many consumers questioned the purpose of LV's counterfeiting.

"There are too many fashion wholesale markets like Tao Tao lane. If LV targets these businesses, it will not be enough in one or two years."

In August 1st, Miss Wu, a white collar in Beijing, told reporters.

Editor in chief, Mr. Liu told reporters that the technical content of LV's counterfeiting is really not flattering, "as far as I know,

Basically, counterfeiting is the source of counterfeiting, such as counterfeiting factories or large wholesalers.

But LV now has many hands on many unknown wholesale and retail outlets and small businesses in China. This behavior does not match the status of luxury goods giants.

Compared with the action of high-profile counterfeiting of luxury brands, the fact that the counters do not support inspection and after-sales service are still unchanged.

In August 3rd, reporters called LV, Hermes and Burberry to ask whether they could inspect the goods in some stores and counters in Beijing.

"At the moment, LV is acting like a show.

Even if these small wholesalers and retailers are knocked out, the legitimate rights and interests of consumers can not be effectively guaranteed.

In August 2nd, Dr. Zhou Ting, a luxury research center of the University of foreign trade and economics, told reporters that the main intention of the LV is to warn other similar businesses not to continue to sell counterfeit products, because they still do not provide inspection services for special counters, and their counterfeiting behavior will naturally be questioned.

Maintain image

A number of luxury brands announced this year's earnings report shows that China's market profit decline is obvious.

Burberry reported that sales in the Asia Pacific region (mainly in China) fell to 16% in the first quarter of this year from 67% in the same period last year. The market share of PRADA (Prada) in China has also gradually declined, which is 25% lower than that in the highest period. The market share of LV and Tiffany (Tiffany) in the Chinese market is also declining.

In view of the current sales situation of luxury goods in China, Zhou Ting believes that the domestic macroeconomic instability, coupled with the negative effects of various luxury goods such as flooding and poor after-sales service this year, has led many consumers to make decisions not to purchase luxury goods temporarily, and Chinese loyalty to luxury goods is no longer solid.

"At present, the European economy is declining, and luxury brands are starting to increase their anti fake efforts in emerging countries such as China. This shows that these arrogant businesses have realized the market crisis and have made some adjustments in their marketing strategies."

In August 6th, Liu Linqing, a brand marketing expert and professor of advertising School of Communication University of China, told reporters that from the perspective of brand marketing, advertising and marketing are the most important means of brand image building.

Previously, the way of luxury brand image was mainly based on positive advertising, but the attitude of the market was too vague. "Under the environment of European economy, if the fakes in emerging markets are allowed to run rampant, luxury brands are likely to be caught in the dark, and profit growth and brand image will be seriously affected".

Can we continue

"No matter how motivated we are, we must affirm the behavior of luxury brands, thereby deterring illegal elements."

In August 3rd, Attorney General Yu Chun Yu, a partner in Beijing's Ying Ke (Shanghai) law firm, mainly engaged in intellectual property business, told reporters that the sale of goods without trademark authorization was illegal and the exclusive right holder should take the initiative to clean up the market.

According to the original rain introduction, there are two forms of luxury brand counterfeiting, one is to cooperate with a counterfeit institution or a law firm, to pack out the fake business in the form of agent and to divide the income afterwards; the second is to pay a certain cost to the cooperative institution in advance, and the two sides cooperate to launch a false action.

"The essence of counterfeiting is still good for consumers, and no matter what kind of rights protection methods are adopted by the right people, there is nothing wrong with it."

Rain, said the element.

Zhou Ting believed that the luxury brand's action focused on counterfeiting was suspected of speculation.

She believes that luxury brands should not focus on a certain period of time to launch anti counterfeiting operations, but should continue to carry out, so as to achieve effective purification of the market effect.

Is the luxury brand's focus on counterfeiting activities going on for a short time or going on? From August 3rd to August 6th, the reporter called the LV public relations manager for several times, but his cell phone was never answered.

Meanwhile, the reporter also sent a letter to Burberry. As of press release, no reply has yet been received.

Extended reading

Chinese are keen to buy luxury goods abroad.

There are more and more outbound travel items for shopping purposes. In Europe and America, luxury goods stores have become a must for Chinese tourists. It seems that they do not really come out of the country without a few luxuries.

As a matter of fact, the vast majority of luxury brands can be bought at home. Why do Chinese consumers still have to go far? The reason why international luxury brands have sold for a long time at home is much higher than that of foreign countries, which makes Chinese consumers with luxury consumption need to turn to foreign markets.

A Chanel handbag TimelessClassicFlap retails in France for 3100 euros ($3839), while it sells for 37 thousand yuan (5850 US dollars) in mainland China, with a difference of 34%.

A LV handbag Speedy30 is priced at 6100 yuan (US $964) at home, while Europe sells for only 500 euros (about 619 dollars), and the difference is 36%.

It is no wonder that Chinese consumers are rushing overseas to buy luxury goods.

Why luxury goods are sold in China more expensive than foreign countries? According to the Chinese Academy of Social Sciences Financial Strategy Research Institute, according to Shao Hua, the superposition of all taxes and the accumulation of all kinds of fees are the fundamental reasons for pushing up the final price.

China has a higher import tariff policy on luxury goods, with a tax rate of 6.4%-25%.

But in addition to tariffs, luxury goods sold in China also need to pay VAT, consumption tax, business tax and so on. The consolidated tax burden is higher, resulting in the final retail price more than 2/3 above the CIF price.

Taking Estee Lauder eye cream as an example, its CIF price is 175 yuan, the import tariff rate is 10%, the consumption tax rate is 30%, plus the import link cost, the import duty paid price is 274.5 yuan, which is nearly 100 yuan higher than the CIF price.

In the domestic circulation sector, it also needs to pay 5% business tax, 17% value-added tax and urban maintenance and construction tax, etc., plus advertising fees, the final retail price of its direct store is around 540 yuan.

In the face of the huge price gap between luxury goods at home and abroad, how can we reduce the consumption of luxury goods purchased by consumers in China? Yi Shaohua suggested that first we should adjust the scope of luxury taxation and appropriately reduce tariffs; secondly, we should reduce domestic tax links, implement a unified consumption tax, exempt business tax and reduce various categories of taxes and fees.

In addition, domestic enterprises should be encouraged to acquire foreign luxury brands, so that they can consider more domestic demand in product design, reduce the cost of brand promotion and all kinds of import links, and at the same time reduce the presupposition profit, so that the retail price of luxury goods will be integrated with the international market.