Monday, September 3, 2012

Spot the Difference: 20,000 Fake Louboutins to be Destroyed by US Customs



U.S. Customs and Boarder Protection (CBP) seized over 20,000 fake pairs of luxury Christian Louboutin shoes in four separate shipments from China last week. The shoes, described as “very good counterfeits” by the CBP, are estimated to have cost about $3 per pair to produce, indicating a total value of around $60,000. Louboutins usually sell for around $800 but can reach $5,000 or more for elaborate designs. The haul would have fetched over $18 million in the American market alone. The shoes are now set to be destroyed, most likely by being incinerated.

The French designer’s creations, famous for their red lacquered soles, have become a world-wide symbol for sexy sophistication and elegance. Louboutin’s obsession with shoes began as a teenager, when he worked as an apprentice in the famous Parisian music hall Flies-Bergere. There, he marvelled over the ability of showgirls to dance in elaborate headdresses and heels. Louboutin launched his own shoe boutique in 1992 in Paris and developed his signature red lacquered soles, inspired by a glamorous assistant’s scarlet nail polish. Louboutin described the bright red shade as “a symbol of love, of blood, of passion.” Industry journal Footwear News described Louboutin shoes as “a subtle status symbol”.

It’s not just Louboutins; luxury brands from Chanel to Louis Vuitton, from Rolex to Burberry have been plagued by the counterfeit market for decades. The U.S. Chamber of Commerce estimates for every $1 spent policing counterfeit goods, it gains $5 in new tax revenue. Louboutin fought and lost in court battles against fellow designer Yves Saint Laurent and high-street retailer Zara last year over the right to sell shoes with red soles. DIY versions are popping up on the high-street too, with kits to paint the soles of shoes scarlet growing in popularity.

CBP Director of Field Operations in Los Angeles Todd C. Owen stated in a press release: “This seizure illustrates the outstanding level of commodity expertise and vigilance of CBP import specialists and officers at our nation’s largest seaport. CBP maintains an aggressive and proactive posture on intercepting shipments containing counterfeit and pirated items.”

How much do knock-offs really damage a brand? It’s hard to say. Counterfeits attack possibly the most valuable qualities of prestige brands – their exclusivity, their power as a status symbol. If people buy designer clothes in part to be seen with them by others, then a proliferation of fake designer produce that places doubt over authenticity might torpedo demand. On the other hand, if the brand is strong enough, maybe consumers will still aspire to own the real thing.

But aside from the brand – what about the fakes? While high-heeled shoes probably aren’t the easiest commodity to divert towards a more useful end than the designer knock-off market, it hardly seems right to destroy 20,000 pairs of shoes. Wasting viable products, regardless of their production methods, doesn’t appear to be the answer.

- Caroline Reid, Marketing Advisor

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