Luxury Brand Mentality Complex And Delicate Report 84% Chinese Young People Buy Fake Products

A new generation of young people, though more moral, will not stop buying fake products. This is a very complicated and delicate mentality.

Recently, the International Trademark Association INTA surveyed young consumers of Z generation from 10 different countries including China, Japan and the United States to understand their consumption psychology and their opinions on fake products. The survey was conducted from August 2018 to November, especially for young people of Z generation aged between 18 and 23, who were born between 1995 and 2000. By 2020, the Z generation is expected to become the most important consumer in the world.

The report found that in the past year, 71% of young Americans bought counterfeit goods, while 84% of Chinese young people bought counterfeit products, which surprised the industry.

In 10 countries, Nigeria's young consumers are the highest proportion of counterfeit goods, up to 97%. These young people bought at least one fake product in the past year, and said that many times they could only buy some fake versions of their brands. Followed by Argentina and India, both were 89%. Japan is the country with the lowest proportion of counterfeit goods. Only 46% of Japanese young people buy fake goods, while Italy has 59%.

In fact, these consumers are not forced to buy counterfeit goods. 83% of young people in the United States have heard of the concept of intellectual property rights at least. As many as 99% of Chinese respondents said they knew about intellectual property rights, the result was equally surprising.

Of the US respondents who knew intellectual property rights, 82% said they believed that intellectual property rights were the same or more important than physical property rights. 92% said they respected intellectual property rights and respected people's creativity and creativity. Of the Chinese respondents who have heard of intellectual property at least, 94% think intellectual property is as important or more important as physical property rights, and 97% say they respect others' ideas and creation very much.

This means that the intellectual property consciousness of the younger generation in China is at a very advanced level globally, which will greatly affect the structure of the future consumer goods market.

In fact, 73% of US respondents said that the reason why people buy fake products is "they can not afford the way they want to live". The proportion of Chinese respondents is 56%. The report shows that the counterfeit goods commonly bought by young people in the United States and China are clothing, shoes and accessories. Bain predicted that the millennial generation and the Z generation will account for 45% of the global personal luxury market by 2025. These young shoppers are also the group with the most shopping contribution and market growth, especially in China. Some analysts say that the importance of digitalization is being demonstrated as a manifestation of brand younger.

It is noteworthy that 61% of Chinese young people believe that counterfeit goods are more convenient than genuine products, which is related to the phenomenon of fake goods such as Alibaba and other domestic e-commerce giants. However, in recent years, the Alibaba's anti-counterfeiting achievements have recently been recognized.

Doug Collins, vice chairman of the House Judiciary Committee, said publicly at an intellectual property hearing, "which platform is really committed to combating counterfeit goods and protecting consumers? For most people, Alibaba is undoubtedly. Collins also admitted that the US platform such as eBay, WAL-MART and Amazon was far behind in this regard. On the day before the hearing, Alibaba showed a number of intellectual property protection achievements at the national intellectual property survey center.

In recent years, Amazon has launched a strategy of opening up to Chinese sellers in order to defend Alibaba's competition, resulting in the failure of its platform products to be guaranteed. An American media article pointed out that the Amazon e-commerce platform is gradually evolving into a distribution center for counterfeit goods. If the Amazon platform stops the sale of counterfeit goods, it will aggravate the phenomenon of counterfeit goods flooding through various platforms, leading to a decline in consumer confidence. LVMH, the world's largest luxury group, has clearly stated that it will not cooperate with Amazon, an e-commerce platform.

In less than a year, Gucci's parent company's cloud, Chanel beauty and Michael Kors have reversed their attitude to join the Tmall camp, which means Alibaba's anti counterfeiting activities are gaining more and more affirmation. The Wall Street journal also reported earlier that although luxury brands are paying more and more attention to e-commerce and digitization, they are still cautious. Luxury goods are more willing to cooperate with Alibaba than Amazon.

Not only is the electricity supplier, but China has been promoting the counterfeiting of luxury products recently. According to local media, a woman named Geng was sentenced to four years' imprisonment and a fine of 1 million 200 thousand yuan by the Mentougou court in Beijing this month. Geng has made use of the network platform "micro shop" to sell 198 kinds of luxury goods, such as fake Louis Vuitton, Gucci and so on, which are provided by Guangzhou and Changping merchants, and the sales volume of online stores is 6 million.

In March this year, the Chinese police arrested a 32 member luxury counterfeit merchant and seized more than 4000 copies of handbags, clothing and accessories with a total value of 100 million yuan, including Louis Vuitton and Loewe. The counterfeit merchant mainly sells through WeChat and other channels. Some analysts say that domestic consumers like to use luxury goods to create social distance, which is the reason why fake businesses are popular.

In February last year, WeChat's WeChat announced that it had permanently banned 976 "fake, high imitation" small programs, and intercepted restrictions in registration, certification and auditing. WeChat also said that some developers were guided by small programs to external channels for "malicious marketing". At present, more than 1000 violations of small procedures have been permanently banned, and technical standards and manual audit interception have been carried out after "on-line renamed" audit channels, aiming to crack down on the situation of passing qualification audit.

However, in the long run, the consumption psychology of young consumers on high imitation fake products will still support the existence of a certain scale of fake goods market.

The Association report found that only half of the Z generation consumers are morally opposed to buying high imitation products. The other half is ambiguous about the behavior. In principle, the Z generation is very respectful to the value of people's creativity, which also leads to strong brand awareness. But in practice, whether it's a street store or a hypermarket and an electricity supplier, Z generation lives in a world where fake products are everywhere, so their ideals are severely tested by the surrounding reality.

When young consumers make actual shopping decisions, they often need to balance their moral choices and incomes. Although morality is considered an important influence, it is not as important as income factors. When the income of the Z generation can not meet the standard of living they want, they may choose to buy high imitation products.

Contrary to common sense, the Z generation is still sensitive to price. A 23 year old female from Argentina said he would first consider the price, and then if the price is convincing, then look at the product. A Russian 21 year old male interviewee believes that when you are a student, buying high imitation products is entirely acceptable or even desirable.

Tolerance of value diversity among young people also affects consumer behavior. A 19 year old male Argentina interviewee said, "I hold a liberal world view. If you think that buying high imitation sneakers is no problem, you can do that. I will not make moral judgments about this.

Although young people in the US and China say they buy fake products, they claim that they are more concerned about the practicality of the product than the brand name. 85% the Americans surveyed said their products were more important than brand names, and 78% of Chinese consumers also think so.

This also proves that many times the consumption psychology of Z generation is full of contradictions, which makes them very flexible in making consumer decisions, and their moral propositions are always "looking at the situation". Although sometimes their consumption behavior is not consistent with the ideal moral principles, they can rationalize their purchase of fake goods and think it is not a serious matter. And the high acceptance of fake goods will support the long-term existence of the fake market.

The frequency of Chinese consumers buying fake goods is higher, but the acceptance rate of the society is lower. The social acceptance of counterfeit goods in other countries is higher than that in China.

Unlike young people in Nigeria and other places, they can only buy high imitation products. Chinese consumers already have various channels to purchase authentic products. In this case, Chinese consumers often know to buy fake products.

Although the number of Chinese Z generation buying counterfeit goods is 13% more than that of the US, only 35% of Americans say they may buy fewer fakes in the future. 70% of Chinese consumers believe that they still plan to buy a few fake products in the future.

More and more young consumers with a certain economic strength begin to "buy fake and fake". This reflects a smart and pragmatic attitude of the new generation of young people in consumer decision-making, behind which is a hard balance between decent image and cost performance.

When Chinese consumers can buy high imitation products that are consistent with the quality of genuine products at very low prices, many people can not resist such a huge temptation. Ma Yun once said that the quality of counterfeit goods made in China is better than that of genuine goods. It is a long way to go to eradicate fake goods on China's largest online shopping service. He believes that "today's counterfeit manufacturers, the quality of their products is better than the real goods, the price is more affordable, to destroy these real brands is not a fake, but a new business model."

According to McKinsey's report, China's luxury report 2019 social fission: China's "post-80" and "post-90s" spawned new global luxury racecourse, with "80 generation" and "post-90s" represented the younger generation, accounting for 43% and 28% of the total number of luxury goods buyers, respectively, contributing 56% and 23% of the total consumption of luxury goods in China. In terms of per capita expenditure, the "post-80" luxury consumers spend 41 thousand yuan on annual purchases of luxury goods, and the "post-90s" luxury consumers are 25 thousand yuan per year.

Some people think that if a brand does not fire, it will see that its fake products are not many, which also implies the subtle relationship between genuine brand and fake goods. In the future, people will see an unavoidable phenomenon. Young people who buy genuine products and buy high imitation will continue to grow. Author: Drizzie