Fake branded items: Does it matter?<\/p>\n
Grace Emelia, Contributor, Jakarta<\/p>\n
Giorgio Armani would probably laugh again were he to visit
\nJakarta and be given fake Armani jeans or T-shirts, the way he
\ndid when he visited Moscow.<\/p>\n
In his recent visit to the Russian capital, where cheap
\nclothing bearing famous brand names can easily be found, he was
\ngiven a pair of fake Armani jeans and sunglasses by a local
\ntelevision reporter.<\/p>\n
Armani was not angry. Instead, he said he was glad people
\ncould buy Armani products, even if they were fake because this
\nindicated that he was popular around the world.<\/p>\n
Undeniably, Armani is popular in Indonesia. In Jakarta, it is
\neasy to find various fake Armani products, particularly jeans and
\nT-Shirts in Kelapa Gading or Blok M.<\/p>\n
Traders usually sell fake branded clothes at big discounts.
\n\"Fake Armani jeans are, for example, offered at Rp 300,000
\n(US$32) each, but the discount can be as large as 60 percent,\"
\nsays Yohanes, a trader.<\/p>\n
According to Yohanes, authentic Armani jeans sell for between
\nRp 1.1 million and Rp 1.9 million and can only be found in
\nEmporio Armani's only store, located in Plaza Indonesia Jakarta.<\/p>\n
United Colors of Benetton (UCB), which just reentered
\nIndonesia in April 2002 is also experiencing a similar problem.
\nMany fake Benetton T-shirts are easily found in Jakarta and
\nSurabaya. The quality of the material and design of these fake T-
\nshirts is much poorer than an original.<\/p>\n
Customers of real UCB clothing are soon able to notice the
\ndifference. \"This is a real problem for us who are not just
\nselling prestige and brand-name items but also high quality
\nproducts,\" says Anne Wiradinata, merchandising manager of UCB,
\nwhich sells men's clothing at an average price of Rp 400,000 per
\nitem.<\/p>\n
She says that at present UCB only has two stand-alone outlets
\nin Jakarta (at Taman Anggrek Mall and Plaza Indonesia) and
\nanother one in Tunjungan Plaza IV, Surabaya.<\/p>\n
According to her, there are many stores carrying the company's
\nname and selling fake products.<\/p>\n
\"These kind of stores often use outdated UCB banners and
\ninterior design style, so new or ignorant customers will think
\nthey are the real UCB stores,\" says Wiradinata, adding that these
\nstores usually offer big discounts to customers.<\/p>\n
In Italy itself, home of many fashion brands, counterfeiting
\nhas become a national industry. The London-based International
\nChamber of Commerce (ICC) reports that in 2000, the turnover in
\nillegal sales of leather goods alone amounted to US$1.5 billion a
\nyear.<\/p>\n
According to a survey by the Milan Chamber of Commerce, three
\nout of four producers of designer wear and leather accessories
\nhave become the victims of counterfeiting. Worse still, 80
\npercent of customers say they buy fake clothes willingly.<\/p>\n
Fashion items such as sunglasses and leather handbags are
\ncopied illegally, either in Italy or abroad, and fakes are sold
\nin the street or through established stores. A report by the
\nGlobal Anti-Counterfeiting Group (GACG) estimated that in Europe
\nas a whole, 11 percent of the clothes and footwear in circulation
\nare not genuine. Other counterfeited goods are produced by
\ncraftsmen who work for the designer companies themselves,
\nproducing an extra few to sell on through the black market.<\/p>\n
The GACG survey revealed that counterfeiting is costing
\nEuropean business in general around 50 billion euros ($47.5
\nbillion) a year. Clothing and footwear companies are losing 7500
\nmillion euros annually - more than any other industrial sector.<\/p>\n
However, it is not easy to combat these counterfeited goods
\nboth in Indonesia and elsewhere.<\/p>\n
\"If a company has to invest in expensive research,
\ninvestigators and lawyers to protect its brand, it is harder to
\nbe competitive and create new products.\" says Peter Lowe,
\nAssistant Director of ICC's Counterfeiting Intelligence
\nBureau (CIB).<\/p>\n
Lowe added that political and judicial authorities are often
\nreluctant to act because they see counterfeiting as trade-related
\nand therefore a minor criminal offense compared with more urgent
\nproblems such as violent crime. Also legal action against
\ncounterfeiters can take so long that companies usually make a
\ncompromise with the counterfeiters rather than wait for official
\nrulings.<\/p>\n
In Indonesia, brand or store managers usually face similar
\nproblems. \"The lack of law enforcement is one reason. We have
\nasked the people who sell our fake items not to do it again, but
\nthey just return a few days later. At least we have our own
\ncustomers who know whether an item is a counterfeit or not,\" says
\nBetari Karlinda, public relations manager of GUESS Indonesia.<\/p>\n
Those buying fake Armani products are not our consumers. We
\nhave our own captive market. Before the crisis, 75 percent of
\nthem were Indonesians. Presently the number is as much as 90
\npercent because much fewer foreigners are staying in the country.<\/p>\n
\"Though our sales have not yet reached pre-crisis levels,
\naverage sales have been increasing by about 15 percent compared
\nto 1998,\" says Yohanes, conveying that men's suits, sold between
\nRp 15 million and Rp 16 million, are currently the hottest
\nselling item in his Giorgio Armani boutique store in Plaza
\nSenayan Jakarta.<\/p>",
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