If you’re an authentic fashionista, you likely turn up your nose at those knockoff Gucci loafers or fake Giuseppe Zanotti pumps. While fake designer goods are certainly illegal, a new study says counterfeits might actually be a good thing for the fashion industry.
The study out of the University of British Columbia says that when counterfeit products are fooling too many customers, fashion labels are forced to “step up their design game” to set themselves apart from the copycats.
"The authentic producers will make the most of any cost advantages they have to produce more highly differentiated goods shoppers can easily identify as the real thing," Yi Qian, the author of the study and an associate professor at UBC’s Sauder School of Business, said in a statement. "In fashion this can mean an increased focus on aesthetics."
Qian and her co-authors examined 12 years of data from China when counterfeiting production surged and enforcement against the practice were relaxed.
Focusing on 31 brands selling leather and sports shoes in the country, the study noted that when a high-end counterfeit shoe was released, companies responded by increasing production values for their own shoe.
Once a counterfeit product hits the market, authentic producers push to use fancier surface and siding materials in an effort to improve the appearance of shoes, notes the study.
The study concludes that if a company fails to react and improve, it risks being overtaken by the fake product.
"We know knock-offs are out there. Yet sometimes, the most efficient solution is to let the market’s invisible hand do its own regulation, as it can lead to better products," says Qian.
