crime

Fake brand-name goods confiscation at all time high; 90% originate in China

47 Comments

Last year, a record amount of fake brand-name goods were confiscated at customs offices throughout Japan, with around 90% originating from China.

According to the Ministry of Finance and the National Police Agency (NPA), the number of cases involving the confiscation of fake brand goods and merchandise totaled 28,135, a number both 5.7% higher than the previous year and the highest ever recorded. Of the total number of cases, 25,844, or about 91.9% of them were goods manufactured in China.

Sankei Shuimbun reported that of the various goods seized by customs officials, fake brand-name handbags, wallets and purses comprised about half of the merchandise. There were also a lot of smartphone cases sporting brand-name logos, and pirated copies of various exercise DVDs.

The ministry has released an official warning to consumers to be careful what they buy online.

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47 Comments
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Paradoxically, firms in some of the countries where bogus labels are produced make the legitimate products as licensees. It does create an international trade brouhaha.

3 ( +5 / -2 )

No big surprise. China has been stealing and copying from foreign companies before their economy developed. It's what made the foundation of their economy today, copycatting. According the IP commison, China is the major thief of U.S. intellectual property.

https://www.google.co.jp/url?sa=t&source=web&rct=j&ei=oycmU83VIIXNkgWJsYGQCw&url=http://www.ipcommission.org/report/IP_Commission_Report_052213.pdf&cd=1&ved=0CCMQFjAA&usg=AFQjCNF2R607l3O0vIH5GIDn5YzLNl2HBQ&sig2=omVU_i9AkP2bdZ-TERs-6A

It's unfair because it steals jobs from other countries.

15 ( +18 / -3 )

@titaniumdioxide

Interesting though is how at the big markets in Shanghai and Beijing, almost all the shoppers are non- Chinese tourists who create the demand for these goods in the first place.

4 ( +12 / -8 )

A tale of two thieves. On the one hand you have people fraudulently selling unoriginal goods as the originals. On the other hand you have people selling their original products at grossly over-inflated prices who subvert our legal system to create over-protective intellectual copyright laws.

Customs officials jobs are now to protect the Prada and Louis Vitton names? Seriously? That is your tax money at work, protecting fabulously rich companies that still continue to become even more fabulously rich despite these copied goods. Of course, I am having trouble thinking of anything that customs officials do that I approve of. They steal your porn and your mary jane, and tax your goods and purchases. Okay, I guess it may be a good thing to have them distracted with the fake goods!

2 ( +11 / -9 )

This is nothing new, 20 years ago the markets in Hong Kong were selling copy brand goods, china has amped up production in recent years making the branded copies more prominent. Trade should be stopped with china over time and this place of no morals who thinks it can do what ever it likes should be isolated, until such time as it decides to play by the same rules the rest of the world does.

4 ( +8 / -4 )

On the other hand you have people selling their original products at grossly over-inflated prices who subvert our legal system to create over-protective intellectual copyright laws.

If people are willing to pay the prices, then they are not over-inflated. Simple as that. Anyone who creates anything has the right to set any price they want on it, if people don't want to pay it, then the price is too high, and they won't sell any. It's a natural check and balance. The very fact that people pay the prices they do for brand goods means that the goods have that value. This is the same for anything from brand goods to cereal at the grocery store. If a grocery store sets the price on the cereal too high, then people will not buy it. Whether you realize it or not, the price on absolutely everything that is sold anywhere at any time is based on an agreement between the buyer and seller on the value of the item. It may not seem that way when you walk into a store that has set prices, but as I mentioned, if the price is high enough that buyers do not buy it, then there is no agreement on the value between the buyer and seller, and the product does not get sold.

So there is no such thing with brand goods as over-inflated prices. The goods are worth the price that buyers and sellers agree upon. Simple as that.

3 ( +9 / -6 )

"China has been stealing and copying from foreign companies before their economy developed."

And they produce these goods to meet Japanese demand. Doubtless, it was Japanese gray market importers who ordered these products and pocketed a portion of the profits.

-6 ( +4 / -10 )

No demand, no supply. Simple as.

5 ( +11 / -6 )

This was years ago, but I remember reading about a foreign company that had just pulled out of China. The foreign executive said his Chinese executive partner had been giving the company secrets to his wife, who had then set up her own company producing rip-offs goods.

3 ( +4 / -1 )

From the very beginning we already know this, i dont know why japan trusted china goods?

2 ( +4 / -2 )

Sue, they are mostly Russians and Japanese, who provide for the poor but pretentious part of their consumers. Eastern Europe has many such tourism based trade companies. Last time I went home and saw the situation I nearly cried. Brand goods are sold with 300% taxes and added price , and even people with average income cannot afford them.

0 ( +1 / -1 )

Just dont understand this brand love here in Japan. The place i work they love to show their super expensive wallets but they dont have a penny inside. Just like i have a 70.000 yen wallet but i dont have even a 10.000 yen inside. Some girls even joined a brand club to rent super expensive bags. Whats the point to impress people you dont like whit something you dont have?

5 ( +8 / -3 )

Let's face it!! It all about money! Greed is going to be the end of us all!

1 ( +1 / -0 )

@Lilic. It isn't just Japan that is brand obsessed. Look at all the Westerners with their iPhones. A brand wallet will still be a good wallet in 5 years - while brand electronic gear will be obsolete. Better yet, buy something based on its quality - not on the brand name stuck on it.To that end, some pirated goods are every bit as good as the brands they copy, but much cheaper.

1 ( +2 / -1 )

I've seen a lot of counterfeit brand-name goods in Britain. A lot of fake Super Dry Japan jackets seem to be around. Can't say where they originate from, but they're not very well done. I've seen counterfeit goods for about two decades now. I still occasionally see counterfeit pokemon games, which is kinda surprising. I'll stick to what I know and trust thanks, and buy from sellers I trust. I'm not all that surprised that so many counterfeit goods come from China, although that doesn't necessarily mean that the organisations distributing these goods are themselves Chinese. It could just be that foreigners have set up shop in China. Who knows?

1 ( +1 / -0 )

StrangerlandMar. 17, 2014 - 08:51AM JST If people are willing to pay the prices, then they are not over-inflated. Simple as that. Anyone who creates anything has the right to set any price they want on it, if people don't want to pay it, then the price is too high, and they won't sell any. It's a natural check and balance.

All very fine and well when you're talking about luxury items, but when you get to medicine where people will die without it I lose my sympathy for this argument. India was regarded as a major "thief" for producing generic medication that save millions of lives.

At the end of the day though the big economies may whine and complain about breaches of copyright from China, but they still keep on buying their products, so honestly who are we fooling here? Either put your money where your mouth is and refuse to buy anything from China or keep buying from China and shut up. People can't have it both ways.

0 ( +4 / -4 )

"Customs officials jobs are now to protect the Prada and Louis Vitton names? Seriously? That is your tax money at work, protecting fabulously rich companies that still continue to become even more fabulously rich despite these copied goods."

Tom: But it's reciprocal of course. Japanese companies expect the same enforcement in overseas markets they do business in.

1 ( +2 / -1 )

"And they produce these goods to meet Japanese demand. Doubtless, it was Japanese gray market importers who ordered these products and pocketed a portion of the profits"

Agree, not only Japanese demand but also catering the temp/long term foreigners in Japan, majority of the stuff in the 100 yen shops, duty free shops is stocked with these goods only,

-3 ( +0 / -3 )

This Banksy graffiti sums up brands and image very well:

http://www.derelictlondon.com/uploads/5/6/0/3/5603187/_9536280_orig.jpeg

-1 ( +0 / -1 )

@strangerland

then why bother copying? why not create their own brand? brands exist because they create value, whether it be quality or image or something else. by copying they are stealing the reputation of the brand.

2 ( +3 / -1 )

JeffLeeMAR. 17, 2014 - 08:56AM JST "China has been stealing and copying from foreign companies before their economy developed." And they produce these goods to meet Japanese demand. Doubtless, it was Japanese gray market importers who ordered these products and pocketed a portion of the profits.

There is NO demand for fake goods here in Japan. The average consumer here is not interested in buying those rubbish. But the real problem is how the ordinary buyer differentiate the real and the rip-off. Many are unaware and ignorant. China has become so good in faking that its fake goods are indistinguishable to thr original. Again, those goods are NOT in demand. They are made to deceive people. I'm glad Japan is blocking it.

3 ( +5 / -2 )

Only 90%?

4 ( +4 / -0 )

If people are willing to pay the prices, then they are not over-inflated.

A horribly over-simplistic argument that is not worthy of your intelligence. People tend to think a thing must be worth a certain amount judging by price alone. But they have no access to information that tells them the actual cost of the item to the company that made it. Frankly, I think suck information should be on a label on the product by law. Then we will see what people are willing to pay.

Even better, I think profit should be capped at 50 percent of cost. That is still huge amounts of money and its still a jip. But at least the people won't get jipped as much anymore. How many kids are hungry or wear old clothes because momma wanted a new Louis Vitton bag? I hardly think they would agree that the prices were not over-inflated.

But, lo and behold, some people are willing to pay full price for the real thing, but will pay a good bit for a fake. But that is not a legal option that would allow them to put their mark on what they think is a fair price.

-2 ( +2 / -4 )

There is NO demand for fake goods here in Japan.

Exactly. Its obviously people who have no idea about luxury brands (ie. can't even spell Vuitton correctly) making the suggestion to the contrary. Most Japanese I know wouldn't be caught dead with a fake anything. That defeats the whole purpose of owning a luxury brand.

PRC and their rip off fakes produced by exploited workers make me sick to my stomach.

3 ( +4 / -1 )

Exactly. Its obviously people who have no idea about luxury brands (ie. can't even spell Vuitton correctly)

That bit about the spelling is hilarious! It is so indicative of the psycho-social brainwashing that leads people to desire these things for some validation. I know that some of these goods are higher quality, but not to the degree of the prices they are often sold at. No, these companies prey on the weak of mind and those with low self-esteem. I do not exactly applaud the counterfeiters, but they do offer a bit of balance to this equation.

-5 ( +2 / -7 )

'Most Japanese I know wouldn't be caught dead with a fake anything. That defeats the whole purpose of owning a luxury brand. PRC and their rip off fakes produced by exploited workers make me sick to my stomach.'

I despise any country or company ( legitimate or not ) exploiting workers and many authentic goods are produced in appalling conditions. As for counterfeit goods, let's hope that one day more Japanese people wouldn't be seen dead in tacky rubbish like LV, authentic or not, and we can cut off the demand. LV sell the majority of their goods in China, Korea and Japan these days. Japan should have outgrown this nonsense.

0 ( +1 / -1 )

I read it somewhere

God made Heaven and Earth, and the rest was made in China.

-1 ( +1 / -2 )

Fake rolex from Hong Kong were the big thing to get 30 years ago, and 20 years ago they had a number of different fake rolex in differing levels of quality to suit the buyers style and budget, nothing much has changed except now it is everything fake form china and produced in huge numbers.

China is Fake.

2 ( +3 / -1 )

China will never be the world's #1 superpower because they are a producer, not a creator.

Baidu ripped-off Google, Weibo ripped-off Twitter, Xaomi ripped-off Apple and (the CEO even dresses similarly to Steve Jobs wtf!)

There are thousands and thousands of others, but these are the three in particular that are seen as Chinese "innovators". Far from it, really.

0 ( +4 / -4 )

Since this is not new... I'm going to put another point on the table that maybe you are not aware of.

I do believe that Japanese don't consume fake goods, but they can be easily cheated by counterfeit brands that are slightly cheaper than the original, they are as good as the "official" brand but half a price, I once watched a website on the internet that sold Louis Vuitton Bags and handbags, like "under license" a purse was 200 USD ( which is expensive here) and the real price was 380 USD, it's kinda difficult not to fall..

My point, I'm guessing this is "news" because we can see an increase of these imports in Japan, but who suffers? the customs offices, since they cannot charge the tax for the full price, it is not that "Customs officials jobs are now to protect the Prada and Louis Vitton names" is the tax that comes from these brands that they are protecting

2 ( +2 / -0 )

@ Sue Jones

China will still from anyone, the country has no morals no value.

@ Strangerland Very well said. Basically its the supply and demand. Also you have the haves and the have nots and the have nots want what the HAVES have!

0 ( +3 / -3 )

then why bother copying? why not create their own brand?

I'm not sure which of my points you are trying to counter here, as you didn't quote anything I said.

brands exist because they create value, whether it be quality or image or something else.

It still requires an agreement on price between the buyer and the seller. If the buyer does not agree that the item has the value of the price that the seller is selling it for, then it will not be sold.

by copying they are stealing the reputation of the brand.

I agree. But I get the impression you are trying to counter something I said.

All very fine and well when you're talking about luxury items, but when you get to medicine where people will die without it I lose my sympathy for this argument.

I agree. It's why I do not support free market capitalism. But if there is going to be free market capitalism, then I think governments should get involved in the creation of medicine for people, and undercut the drug companies. This will then lower the price that consumers will pay drug companies for their medicine.

A horribly over-simplistic argument that is not worthy of your intelligence. People tend to think a thing must be worth a certain amount judging by price alone. But they have no access to information that tells them the actual cost of the item to the company that made it. Frankly, I think suck information should be on a label on the product by law. Then we will see what people are willing to pay.

People may not know the exact cost, but it's not hard to guess in a ballpark figure. Regardless it's irrelevant. No one is required to buy luxury goods, they are a luxury. Anyone who doesn't like the price need not buy them. If they are too expensive, the company will not sell their goods, and they will go out of business.

What you call an over-simplification, I call stripping away all the BS and cutting to the core of the matter.

Even better, I think profit should be capped at 50 percent of cost. That is still huge amounts of money and its still a jip. But at least the people won't get jipped as much anymore.

Why? Why should costs be capped for non-essential goods? If you cap profits on non-essential goods, it puts a damper on motivation. People need to have that possibility to make as much as they can in order to have the motivation to build /create/make it. And as I said, there is already a natural check and balance to this - if the company sets the price too high the goods won't sell.

How many kids are hungry or wear old clothes because momma wanted a new Louis Vitton bag? I hardly think they would agree that the prices were not over-inflated.

That's bad parenting. Completely irrelevant to the conversation at hand.

-2 ( +0 / -2 )

Personally, I think it's a crime that the real brands cost so much...

0 ( +2 / -2 )

This is why China will never become a superpower in innovation. It is far too profitable to just copy others rather than innovating and go through all the expensive patent process...

2 ( +2 / -0 )

I really like my Ipod stove ;)

0 ( +0 / -0 )

This has nothing to do with supply or demand, no one wants a knockoff. People sell these knockoffs as the real thing and many sell it as high as they can.

I wish Japan would also go after the companies that import these knockoffs as hard as they can, these companies need to be put out of business.

If Communist China would clamp down on their sides corrupt companies we (the consumer) wouldn't need to worry if what we are paying for is the real thing or not.

1 ( +3 / -2 )

It is obvious that these are knockoffs. they sell in China and Thailand and HK and Vietnam and even korea for a fraction of their (massively overpriced) retail price. and lots of buyer. Because the knockoffs look just like the real thing...... The number of confiscations seems awfully low. Must be a random that some people get them cionfiscated and others don't.

2 ( +3 / -1 )

To those who know what to look for, the knock-offs are recognizable as such. Logos don't match up across seams, colours are slightly different, zippers are different from the originals etc.

-2 ( +0 / -2 )

This has nothing to do with supply or demand, no one wants a knockoff. People sell these knockoffs as the real thing and many sell it as high as they can.

I disagree. I have met a lot of people that went out of their way to buy knockoffs in many different countries. In all those cases, both sides knew exactly what the product was and both sides were happy with the arrangment and the cheap prices. I have also heard sellers in many countries specifically shouting out that they were selling fake "insert brand name here". People that want the real thing will pay what is necessary. Those that don't care will buy the knockoffs. Those buying the knockoffs were never going to buy the real things. So, generally, there is no loss of business for the true brand names.

0 ( +0 / -0 )

I despise any country or company ( legitimate or not ) exploiting workers and many authentic goods are produced in appalling conditions.

I'm glad we can agree on the rights of workers to a decent wage and fair working conditions. You do raise an excellent point when you say that there are legitimate companies that are guilty of not providing those conditions to their workers, and shame on them as well.

I do think however that so called luxury brands tend to be far less guilty of those sort of shenanigans than do the companies producing knock-offs. A luxury product is better made and therefore requires a more highly skilled worker to produce it. Those workers are less likely to stand for unfair working conditions. Also, luxury brands live and die by their name. They are far less unlikely to risk the reputation of their company by treating workers unfairly than say ABC trading company in PRC which is producing fake, substandard goods and attaching the label of some other company to their work. No incentive there to treat their workers fairly at all.

As for counterfeit goods, let's hope that one day more Japanese people wouldn't be seen dead in tacky rubbish like LV, authentic or not, and we can cut off the demand.

While I don't personally own any Vuitton products and don't particularly care for the "style" of that company, surely you can see that "tacky" is in the eye of the beholder. I too roll my eyes when I see a "host" dressed head to toe in Vuitton items that feature the corporate logo as prominently as possible. Such a person is probably just trying to impress people, as opposed to having any real appreciation for the products. But if you look carefully you can see stylish people all over Japan who know how to fit an ensemble together without looking garish or tacky.

1 ( +1 / -0 )

I do think however that so called luxury brands tend to be far less guilty of those sort of shenanigans than do the companies producing knock-offs.

Maybe not.

The Tuscan town of Prato now has an estimated 25,000 low-wage workers, mostly from China, making "luxury" goods. Their working conditions can be brutal, as exposed by Schiavi del lusso (Slaves of Luxury), an Italian TV documentary

http://www.theguardian.com/environment/2009/may/31/ethical-living-fashion

They are referring to companies such as LVT

0 ( +0 / -0 )

@ Strangerland

Very good argument!!!

@ Frungy

People can have it both ways and that is they can continue to buy the knock offs and be satisfied or they can buy the real brand and not complain at all. Its either you care and have money or you don't care and don't have any money. The thought for most people is if I can buy what something looks like its OK, but some one with money will not do it out of fear of the circle they are in will frown down on them as being just that FAKE!!

-2 ( +0 / -2 )

China will violate IP laws right up to the point it has its own IP that it wants to protect. Then, faster that you can say, "just like the US and Japan before it" China will start enforcing international standards.

1 ( +1 / -0 )

China is the source of all the world's problems, I have never seen anything cheap or counterfeit coming from any other country in the world....possibly because they all tried to lower their labor costs by manufacturing in China. Chickens come home to roost.

0 ( +1 / -1 )

boweevil, there´s another country that makes counterfeit goods.. mostly clothing

0 ( +0 / -0 )

I bought a replica channel in my country Philippines online and was held at Nagoya Japan custom 2 days ago.I was supposed to received my package but unfortunately I received a letter from Nagoya custom.since my phone was disconnected I went to the hospital and use a tel box and call Nagoya custom.They said they going to burn it since it is a fake or replica.I wonder why It is illegal to buy replicas bag for personal use,since we filipina cant afford to buy original bags that too costly.One more thing before the Channel I bought a MK bag online for 6000 yen,obviously its not original.but I received it safe and sound without any trouble.so I'm feeling strange here why they din't hold my MK bag but they held my Channel bag and wallet. Also look.for consideration we are working so hard here to live and send money to our family back home.sometimes we wanted to have brands stuff and original brands are too costly and we cant afford to buy.We also wanted to have brands and it releases our stresses here and homesick, and its so sad that the money I earned from my hard work will just be burn.Today they send me another letter "DECLARATION FOR ABANDONMENT OF ARTICLES"that I voluntarily abandoning my bag. It breaks my heart. at the first place I have no knowledge that replicas for personal use are not allowed here in Japan. I need help please. What should I do.

1 ( +1 / -0 )

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