Dissertation - A Forged Reality

A FORGED REALITY T H E C O - E X I S T E N C E O F L U X U R Y B R A N D S A N D C O U N T E R F E I T I N G I N C H I NA

UNIVERSITY OF HUDDERSFIELD School of Art, Design and Architecture Department of Design

A FORGED REALITY: THE CO-EXISTENCE OF LUXURY BRANDS AND COUNTERFEITING IN CHINA

ASHLEY JADE ASHCROFT

A Major Project submitted in partial fulfilment of the requirements for

BA (Hons) Fashion, Communication and Promotion.

Module THD1038 Fashion Communication Promotion Case Study The candidate confirms that the work submitted is their own and that appropriate credit has been given where reference has been made to the work of others.

The University of Huddersfield School of Art & Design Department of Design Huddersfield West Yorkshire ENGLAND

14TH FEBRUARY 2014

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ABSTRACT

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China holds a significant place in the current market; the rapid growth rate of the countries economy and technological advancements has generated masses of attention throughout the world. This case study examines the past and present Chinese market and its increased association with luxury and counterfeit products.

A carefully sourced methodology has helped navigate this case study including primary research from the following: a focus group discussion with five members of the Chinese society, an interview with Hilary Hollingsworth MA international fashion design tutor, and a online questionnaire with immediate responses of one hundred people. A valuable amount of secondary research has also provided further support of the discussed topic; obtained via books, journals and online sources.

Contained in this document is an explanation on how culture influences brand consumption in China, in relation to Confucianism, which is justified using Hofstede’s cultural dimensions theory. Research identifies common similarities in Chinese consumers, which shows their desire to promote their social status in society and their willingness to pay for premium in order to do so.

Results from the focus group provided in-depth knowledge of the Chinese culture and their consumer preference on quality/price when shopping, along with opinions on counterfeiting. Professional opinions during an interview also explain Chinese consumer growing appreciation for fashion in Hong Kong and China. Both results identify the scale of counterfeiting and the availability of counterfeit products in China, whilst further primary research uncovers the primary reason for buying counterfeit products.

Furthermore, this study recognised the multiple challenges for luxury brands in China, in reference to the growing consumer demand and the increase dangers of counterfeiting.

Conclusively, the case of Burberry demonstrated the significance of China to the brand, and the unavoidable situation between brands functioning alongside counterfeiters in a demanding environment, which is forcing brands to adapt.

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Acknowledgements

___ Thanks to the members of the Chinese society that participated in a focus group discussion, that provided fascinating views and insight into the Chinese culture. To Hilary Hollingworth for her time, professional opinion and knowledge on my case study, to everyone who took my survey. To Charlie and Stephen for their guidance and encouragement.

A special thank you is dedicated to Amanda Tinker for her support and advice throughout, which has helped me achieve the desired outcome of this case study. I would especially like to thank my mum and Kyle for their constant support and motivational talks. Finally, a massive thanks to Aoife and Chelsea for being top- comedians throughout!

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FIG.1 : Chinese consumers FIG. 2 : Traditional Chinese calligraphy FIG. 3 : Paris Fashion week Dior front row 2012 FIG. 4 : Real and fake Louis Vuitton Bag FIG. 5 : Counterfeiting in action FIG. 6 : Fake Ferrari FIG. 7 : Wanda square in Shenyang city FIG. 8 : Pie chart results from counterfeit survey FIG. 9 : Fan Bingbing brand embassador for Louis Vuitton FIG. 10 : Louis Vuitton Advertisement Featuring Lui Wen FIG. 11 : Burberry brand logo FIG. 12 : Burberry 1947 print advertisement FIG. 13 : Burberry 2009 Advertisement with Emma Watson FIG. 14 : Burberry Regent street digital store FIG. 15 : Burberry store in Beijing

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CONTENTS

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Xi ABSTRACT Xii ACKNOWLEDGEMENTS Xiii FIGURES

1.0 INTRODUCTION ......................................12 1.1

RATIONALE

1.2

AIM

1.3

OBJECTIVES

1.4

METHODOLOGY

1.5

1.4.1

PRIMARY RESEARCH

1.4.2

SECONDARY RESEARCH

STRUCTURE

2.0 CHINA MARKET .......................................20 2.1

OVERVIEW

2.2

JOURNEY TO THE WEST

2.3

CHINA’S PRESENT, FUTURE

2.4

POWER AND IMPORTANCE?

2.5

SUMMARY

3.0 CULTURE AND CONSUMERS .................28 3.1

OVERVIEW

3.2

CULTURES INFLUENCES ON BRAND CONSUMPTION 3.1.1 CULTURAL DIMENSIONS

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3.3

CONSUMER DEMAND

3.4

SUMMARY

4.0 LUXURY VS COUNTERFEIT.....................................38 4.1

OVERVIEW

4.2

COUNTERFEITING IN CHINA

4.3

QUALITY OR PRICE?

4.4

BRANDS UNDER PRESSURE

4.5

SUMMARY

5.0 THE CASE OF BURBERRY...........................54 5.1

OVERVIEW

5.2

BURBERRY HERITAGE

5.3

REINVENTING THE BRAND

5.4

BURBERRY IN CHINA

5.5

SUMMARY

6.0 CONCLUSION...........................................62 7.0 REFERENCES............................................66 7.1

BOOKS

7.2

JOURNALS

7.3

WEBSITES

7.4

VIDEOS

7.5

IMAGES

8.0 BIBLIOGRAPHY.........................................74 9.0 APPENDICES.............................................82 9.1

APPENDIX A

9.2

APPENDIX B

9.3

APPENDIX C

9.4

APPENDIX D

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1.0 INTRODUCTION

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1.1 RATIONALE Recently there has been growing interest in China. The country is predicted to have the largest market and economy in the world, established by the population’s cultural influences and buying power of the Chinese. This has created a demand for brands and luxury products in a society that is said to be the worlds leading manufacture of counterfeit products.

Considerable research has been devoted to the cultures influence on consumer behaviour; however, less attention has been paid to the effects it has on brand consumption. The purpose of this investigation focuses on China’s growing relationship with luxury and counterfeit products. This case study identifies how and why China has become a growth market for western luxury brands and analyses the external pressures as consumer demand increases the danger of counterfeiting.

Further research focuses on the topic of counterfeiting in relation to Burberry, adding emphasis on their current situation within the Chinese market, and their battle to protect their brand.

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1.2 AIM >>>>>>>>>>>>>>>>>>>>>>>> TO UNDERSTAND AND EXPLAIN THE CHINESE MARKET, AND THE RELATIONSHIP BETWEEN LUXURY BRANDS AND COUNTERFEIT PRODUCTS IN CHINA AS CONSUMER DEMAND INCREASES.

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1.3 OBJECTIVES

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TO QUANTIFY AND CONTEXTUALISE THE CHINESE MARKET AND ITS GROWING APPEAL TO WESTERN LUXURY BRANDS

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TO UNDERSTAND THE CHINESE CULTURE AND THE CONSUMPTION OF BRANDS

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TO INVESTIGATE LUXURY BRANDS AND THEIR CHALLENGES AGAINST COUNTERFIETING IN CHINA.

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TO EXPLORE AND REVIEW THE CASE OF BURBERRY: PROTECTING THEIR BRAND AND THEIR BATTLE AGAINST COUNTERFIETERS.

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1.4

\ METHODOLOGY In order to produce a compelling and interesting case study into the Chinese market and its relationship with luxury and counterfeit products, research has been sourced from both primary and secondary methods and resources; providing valuable information and support throughout the contents of this document.

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1.4.1.PRIMARY RESEARCH Both quantitative and qualitative methods of primary research have been used to gather information including: a focus group, interview and survey.

A focus group with the University of Huddersfield’s Chinese society was organised, those who participated where from different areas in China, this helped to gather contrasting opinions. The focus group has been essential to outcome of this case study; it has provided an understanding of the Chinese culture and consumer’s thoughts and perspectives on luxury and counterfeit products, as well as insightful knowledge on the size and availability of counterfeits in China.

An interview with Hilary Hollingsworth, senior lecturer and course leader for MA international fashion design, provided knowledge on the Chinese fashion market, including visual presence and advertising. The discussion also conveyed Hilary’s professional opinion on counterfeiting and its perceived impact on fashion brands, valuable to this case.

A survey was created as a method to receive quantitative feedback on counterfeiting. One hundred people where asked 4 questions, in order to find out how many people would buy and/or have bought counterfeit products, and their reasons for purchase, as well as their open opinion on counterfeiting. This resulted in controversial answers, which has helped to understand why counterfeiting is thriving as a market on its own.

1.4.2.SECONDARY RESEARCH The history of the Chinese market and the Chinese culture is an integral part of this case study and the majority of supporting evidence has been uncovered in books, journals and electronic sources via the Internet.

Furthermore, due to the current status and position of the Chinese market and its recognisable significance to the fashion industry, recent information was found on news and broadcasting websites.

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1.5 STRUCTURE This case study has been organised into 4 main chapters with relevant sub- chapters to discuss the following:

CHINESE MARKET A brief history of the Chinese market is essential in understanding how the country has become a growth market for western luxury brands. Research continues to establish a detailed focus of the current position and the future potential of the market, especially

CULTURE AND CONSUMERS

for luxury brands in China. Additionally, this chapter introduces counterfeiting and its link to China.

Initial research into the Chinese culture is essential to understanding Chinese consumers and their purchasing habits. It familiarises the culture and its influence on brand consumption, which is supported

by Hofstede’s cultural dimensions theory and primary research. Furthermore, it explains the increasing consumer demand for luxury products in China and highlights the impact this may have counterfeiting.

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LUXURY VS COUNTERFEIT This chapter pays attention to the driving force behind counterfeiting and the extent of which it is available in China, focusing on the conflict between quality and price. Primary research helps to determine thoughts and opinions on counterfeiting, further explaining reasons why counterfeit sells. Moreover, this section discusses the challenges for luxury brands in China.

THE CASE OF BURBERRY The Final chapter discusses the case of Burberry and its battle to protect their brand from counterfeiting in China.

In detail it identifies Burberrys on going legal battle to protect the brands symbolic black, red and beige tartan print, adding relevance and justification to the rest of the case study.

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2.0 CHINA MARKET .............. .................... ............................. ........

FIG.1

2.1 OVERVIEW This chapter will introduce the Chinese market, and its transition from its imperial past to its current position, in order to establish the reasons why it has become a growth market for Western luxury brands. Contributing factors to China’s present success are explored, to understand why China has become significantly important to the future global market, and perhaps a crucial component to the success of many brands. Controversially, China’s current association with counterfeit products is also considered.

More importantly, the information uncovered within this chapter will establish context to which later finding can be referred.

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2.2 JOURNEY TO THE WEST China’s economy has fluctuated immensely over the years. Before 900 AD, brick roads were built across the Chinese empire and water transport became part of an essential networking system, which allowed the transportation of goods, forming a nationwide market. Many historians believe that China’s pre-modern economic performance reached a peak during the Song Dynasty (AD 960-1279), with the most impressive technologies, iron output and urbanisation rate (ZHU, 2012, p.104). The Song Dynasty was the first government to produce paper money, and China’s recognised developments in wet rice farming was one of the most advanced agricultural techniques in the world, after this technologies continued to develop in China. Making China one of the most advanced countries during this period (Jacques, 2009 p.75).

Consequently, the economy became distinctively commercialised, and the population in China increased rapidly. After the Song Dynasty China began an economic slowdown. The economic failure seemed to coincide with the imperial political institution system, according to ZHU (2012, p.104) “some historians and economists attribute China’s falling behind during this period to more centralized and inward- looking political systems of the Ming (1368- 1644) and Qing (1644 – 1911) Dynasties that stifled innovation and commercial activities in China”. Restrictions were put on foreign trade, and thereafter there was little change in China. Subsequently, China started to halt its progression; leaving it coasting behind the west. The imperial system eventually collapsed after two Opium Wars, between China and Great Britain in the 1840s and 1850s, and the Sino-Japanese war (1894-95). External pressures from foreign countries carved away at the Chinese sovereignty and its territory. This meant China lost even further control over their country to western authorities, and in response the people of China were brought together in efforts to unite all Chinese, in order to establish the identity of China as a nation-state (Wu, 2009, p.103).

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>> Before 1950, China was one of the poorest countries in the world, with close to zero growth in per capita GDP The people of China were faced with difficult unbalanced circumstances; they had little food supply and were forced to work by the government. Additionally, the opening of the borders brought in western influences from political ideas, social structure and positive advancements in technologies (Zhu, 2010,p.105). China was on the cusp of reinvention, but once again the continuous battle between countries and rivalling Chinese’s states during the civil war (192750) and World War II (1939 – 45) prevented the industrialisation of China. Thus gaining any further momentum, up until 1949 when there was the founding of the Peoples Republic of China (PRC). It was then China began to redevelop, beginning the countries own industrial revolution, plus taking back control over their country and its profits.

United States overcame British and Soviet objections and invited China to become one of the big four […] the United Kingdom maintained a considerable stake in china, valued at over £300 million […] the unstable situation created by the Chinese civil war threatened to drive out British interest.

Not surprising, what the United Kingdom desired above all else in China was domestic order - (Wolf, 1983, p.301) Since 1978, China started to reform taking inspiration from the west. The new leader of the Chinese Government, Deng Xiaoping promised many changes, such as the improvement in living standards and aggregate economic performance. Zhu (2012, p.110) stated that “reforms have taken place in gradual, experimental and decentralized fashion”. This explains China’s growth and poverty reduction, and how China began to close the gap between themselves and the US (per capita GDP). The acceleration and change in the economy was due to the reforms productivity growth, which ultimately was the driving force behind China’s impressive transformation into a mixed market economy and thriving cultural independence (XU, 2011, p.1077).

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Also, Tsui (2010, p.1) indicated that China was isolated from the rest of the world during and after the Cultural Revolution in 1966, affecting them in a way which delayed there social development, sixty years on China is still seeking to revolutionise their country, with aims of integrating China into the global fashion industry. China struggled to build their own identity from an early period when other countries were defining theirs, preventing them from innovation, worldwide cultural understanding and social participation; consequently hindering them from creating fashions and trends. Nevertheless, China learnt to keep up with western fashions in a different way, rather than creating fashions, China replicated them.

2.3 THE PRESENT, FUTURE. Many of China’s historic innovations have helped create today’s modern world; paper, gunpowder, credit banking, the compass and paper money all originated in China (BBC News, 2014). The last quarter of the century China was able to revive a legal system, making it functional and lifting several hundred million people out of poverty, and at the same time gaining averaging growth rates of 10% over the past 30 years, according to statistics on International Money Fund (IMF, 2013). With its victorious history, China has become the envy of many developing countries. It is evident that China has the fastest growing consumer market and growth economy to date, as well as surpassing the US in 2010 as the largest manufacturing economy in world. Peerenboom (2007, p.18) and Chevalier & Lu (2010, p.xi) believe that China will become the number one market in the world, due to its large population and growing buying power of the Chinese; referring China to the ‘rising superpower’, set to have the world’s largest economy by mid-century, if not 2020.

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China shows substantial potential due to the rapid developing market and high luxury sales from Chinese consumers making them the “top luxury buyers responsible for 25% of global purchases” (BusinessWeek, 2012). According to Chevalier & Lu (2010, p.12), the recent growth rate is relevant to the growing middle class becoming luxury customers; this demonstrates the importance of luxury products to the modern Chinese consumers. Mainstream markets, independent boutiques and international brands are all looking to invest in China, in order to take advantage of the current growth and consumer demand.

There are constant developments within the Chinese market, which adds further appeal to western brands; Amed (2013) states, how Beijing is the seat of power, not only of the Chinese government, but also of the major media companies, investment firms and industrial corporations, which are driving the economic boom. Currently, China has the worlds largest leading media market, along with the largest online population. Adding that in over 600 cities in China, each city has at least one newspaper, and overall it is said to have at least 2,000 in the country and more than 9000 different magazines. In addition to this, the Internet in China has attracted incredible online growth with 591 million users. This amount of exposure could be invaluable to any brand wanting to generate awareness in China. If brands have the time and money available to invest in adverts and a website that will appeal to the Chinese consumer’s desires it could prove to be extremely beneficial (Amed, 2013).

Furthermore, Turnage (2013) states, “China has been confirmed in its position as the world’s leading counterfeiting superpower”. The counterfeit phenomenon has become a market in itself. Counterfeiters today are able to copy the majority of products from clothing, footwear, food, money and pharmaceuticals. More importantly the fashion industry is at a substantial loss due to this fraudulent behaviour. Inevitably brands risk exposing themselves further to counterfeiters, by taking on the Chinese market.

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This creates added pressure and complications for luxury brands, because there are no real laws or legislation enforcement in place to stop people directly copying off their brand or products; resulting in brands taking further actions within their control; such as a reduction in trademarks and logos on their products.

2.4 POWER AND IMPORTANCE? The possibility of China and its evolving culture being able to change the future of the world makes them a global power. A lot of China’s history has been defined by the west, however it could be argued that China was moving in the right direction all along and its resilient past has been over shadowed by the west, which has lead to it becoming so significant to the future. As explained by Jacques (2009, p.369) The unity of China has ensured the continuity of its civilisation and also provided the size which remains so fundamental to China’s character and impact […] Europe provided the narrative and concepts that have informed not just western but world history over the past two centuries, so China may do rather similarly for the next century or so, and thereby furnish the world with an entirely different story and set of concepts.

Furthermore Jacques (2009, p.326) discusses the importance of China’s trading between countries. China trades with different countries including south/central America, the Asia pacific, the former Soviet Union, the Middle East and more recently there has been an increase in trading between Africa since 2005. China’s investment in the developing country Africa is showing a noticeable increase in the amount of Chinese shops and companies operating there, estimated to be over 900, which is boosting the economy and aiding there development.

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Burg (2013) stated that: “Today China is Africa’s biggest trading partner. Around $200 billion-worth of goods moved between the two last year “. This means countries like Africa are no longer becoming dependant on Western countries such as the UK. Theoretically, China could possibly take over as the largest trading partner and investor on a global scale. Its current presence in 2014 holds China in a very influential and powerful place, and could be extremely beneficial to brands in China; providing growth and visibility in other countries.

China already appears to be somewhat invaluable to the future of luxury brands and will play a predominate role in the future market; there has been an increased interest and purchases of luxury products over the past few years, as explained by Li (2012, p.1516) “The rapidly growing appetite for luxury brands in the emerging economies of Asia, especially China, has helped boost the growth of the luxury market in recent years.” This has created a significant impact within the luxury fashion industry, making it the market all brands want/plan to conquer but struggle to make happen quickly.

Likewise, brands want to appeal to the Chinese market because of its large population. It is needless to say that if a brand can attract the Chinese population the brand will understandably secure a successful future. Making China an important factor to success in the fashion industry. Controversially, brands will be placing themselves in a country that is notorious for producing counterfeit products; likewise the todays technology and trading between countries will also create more platforms for counterfeiters to expand. This means China also has the power to destroy a brands image, if they do not approach China correctly they could risk lose exclusivity (Chevalier & Lu, 2010, p.2)

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2.5 SUMMARY China has experienced a significant turn around and it is evident why China has become a growth market for western luxury brands; it is directly linked to the growth of economy and exposure to western ways. The large population and spending habits of the Chinese consumer also make it a sustainable and desirable market for luxury brands. Evidence suggests that China will become a crucial component to success, and will provide global awareness, even though there is a significant threat of counterfeiting.

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3.0 CULTURE AND CONSUMERS

FIG.2

3.1 OVERVIEW Culture is defined by anything from Language, religion, traditions, cuisines, social habits, music, arts and sports (Zimmermann, 2013). This chapter explores the Chinese culture in an approach to understand the connection between the Chinese consumer and brand consumption. It questions, whether this way of life contributes or defines the act of counterfeiting in the country. To gather a further understanding of the culture, Hofstede’s cultural dimensions theory is applied, as well as primary research from a focus group with the Chinese society at the University of Huddersfield. Key findings relate to whether the students view copying someone or a product (counterfeiting) as a wrongful practice, and further results help to identify common purchasing habits.

Additionally this chapter will explore the Chinese consumers role in the countries emerging success.

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3.2 CULTURAL INFLUENCES ON BRAND CONSUMPTION China has one of the oldest and richest cultures in the world, yet in today’s modern society western influences play a predominate role in the country. China now looks remotely like any other western country, However, compared to other developing countries China has been able to hold onto their history and cultural aesthetics; many conventional Chinese traditions and beliefs still remain amongst the large population (Fowler & Fowler, 2008, p.252). This does seem to have an effect on contemporary Chinese thought and society, and there is reasonable belief that this does influence western brand consumption in China, so an understanding of the remarkable culture is imperative.

There are still religious traditions in China although it is a communist state, commonly known to be an atheist organisation; according to Zimmermann (2013) there is no official religion and more than half of the population claims no religious affiliation.

Nevertheless, religious beliefs have defined China in many ways whether or not they are still practised in modern society. Fowler and Fowler (2008, p.252) state that during 1979, after new communist leadership, China was given greater freedom of religion; five official religions were accepted including Buddhism, Taoism, Islam, Protestantism, and Catholicism, all of which still play a predominant role in Chinese families.

Above all, the teaching of Confucianism has greatly influenced the Chinese way of life similar to Taoism and Buddhism, although some people do not believe Confucianism is a religion, since there are no Confucian deities or teachings of afterlife (Patheos, n.d.). However there are plausible arguments for each. More Importantly the ideology has helped shape China. Confucianism is an ethical and philosophical system that provides social and political values and more importantly stresses “obedience and deference to elders and responsibility to community� (Zimmermann, 2013); this is a practice that has truly characterised the Chinese culture.

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There are many aspects within the Chinese culture other than religion that express the nature of the Chinese, including their fascinating and complex language, and traditional calligraphy that has led to the development of many art forms within the country.

There is also literature, Chinese cuisine, martial arts, architecture, various festivals and many celebrated holidays such as the Chinese New Year, all of which allow the Chinese to express their identity and traditional values. In relation to fashion, traditional Chinese clothing was once an important part of their culture; but now it is relatively unseen, since China’s affair started with west after the Opium war (Chapter 2). This increased exposure replaced traditional dress with western fashion and more importantly brand consumption.

3.2.1 CULTURAL DIMENSIONS Power distance implies that all individuals in societies are not equal. This can occur in areas such as prestige, wealth and power. Each society is different, and in this case China is seen to be a society that believes that inequalities among people are acceptable, considered to be associated with the teachings of Confucius (Hofstede, 2001. p.79). Chevalier and Lu (2010, p.64) refers to Hofstede’s 1991 collectivism as being one of the main aspects of Chinese traditions that relates closest to luxury consumption.

They can be sensitive to the opinions of others, with a tendency to follow or conform to avoid confrontation. Power distance and Collectivism both reflect social status. The more prestigious, wealthier or powerful you are the more respect you are given. This can have a large effect on consumer purchasing habits especially when in a group a people; Collectivists are likely to be influenced by the opinion of those who are superior to them. As mentioned in chapter 2.0, China’s middle class is increasing, as is consumer interest in luxury products. Luxury products represent status and money. This suggests a reason why so many Chinese consumers buy into luxury brands. It has become a way of enhancing social status in a power driven society.

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This view is supported by O’Cass & Choy (2008, p.348) who studied the Chinese consumers’ willingness to pay for premium, which concludes: Communicating a brand with appropriate status relevant to the target consumers, particularly to those with higher involvement, will help to create desirable perceptions towards the brand that will affect consumers’ willingness to pay a higher price for the brand. Such branding of products for the purpose of status upholding and enhancing would be expected to have a significant positive effect on consumers’ brand attitude and their willingness to pay a premium.

Relating to the point emphasised, responses from a recent focus group further support this theory. In order to demonstrate a further understanding of Chinese consumers, five members of the University of Huddersfield’s Chinese Society participated in a group discussion. Questions were asked surrounding purchasing habits (see appendix A). Participants were asked when you are purchasing a product/clothing do you look for quality or price? Responses stated quality was most important, but they would like both, quality at a reasonable price. Further questions were asked as a means to investigate whether they prefer to buy from luxury or high-street stores. Answers were mixed; it seems they purchase from both luxury and high street, but if they had the money they would prefer to buy from luxury high-end stores. Participant 2 answered, “Any, depends on my mood and wallet”. Participant 1 added: “Reputation I think is a good advertisement, If people know the brands and want to buy, then it doesn’t matter if you advertise for us or not”. This demonstrates that the status of a brand is enough encouragement for Chinese consumers when purchasing, however they also show aspects of being price sensitive. If a brand is associated with luxury and quality, then it is very likely Chinese consumers will buy into It, as a way of promoting their wealth.

Conversely if a brand doesn’t resemble this then they become very price sensitive (Zhu, 2013).

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To summaries Hofstede (2001, p.280) masculinity versus femininity, it is described as the fundamental issue behind what motivates people wanting to be the best (masculine) or liking what you do (feminine). China is described as a masculine society, which is success oriented and driven. The need to ensure success can be demonstrated by the fact that many Chinese will forgo family and leisure priorities to work. This is a visible characteristic amongst Chinese individuals, which primary research identified. During the focus group participants vocalised their opinions on the working environment in China. The group was asked if there was anything that attracted them to the UK? Participant 1 replied: “I really like the lifestyle here. I think people here are more to life than work, but in China people are always working, they work really hard.” This visible difference in work ethic demonstrates how important it is to the Chinese population.

The discussion continued to explain the extent of the work situation, and how stores are open much later in China compared to the UK, and in some places overnight.

People in China are willing to work 24/7 even earning very little money; many manufacturing companies have taken advantage of this and there have been common cases where known high street brands have been caught unlawfully exploiting Asian labourers, working in so called ‘sweatshops’. There have been claims against brands such as Primark, Matalan, Mango, Disney and Nike just to name a few (Bunting, 2011).

Subsequently, many workers have been compensated for and minimum wage has increased. It is obvious money was not the driving force behind China’s work ethic; the people’s motivation is driven by an internal motive for success and achievement.

The increased wage may be seen as an approach to encourage spending, The BBC news (2013) indicates: “Analysts have long said that rising income levels in rural areas are key not only to social stability but also to China’s efforts to boost domestic consumption and sustain long term economic growth.” Hence the growing middle class, which leads on to the next cultural dimension. Long-term orientation is the final cultural dimension to consider. Hofstede (2001, p.xx) refers long-term versus short-term orientation “to the extent to which a culture programs its members to accept delayed gratification of their material, social and emotional needs”.

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In this case China is LTO, ranking at 118 (Appendix D) which is the highest out of 23 countries including the United States and Great Britain (Hofstede, 2001, p.354).

This means they have more focus on long term goals rather than short term results, they focus on persistence and perseverance and dedicate as much time as possible to achieve their goals. A tendency to save and invest is another mutual attribute, this is also visible in the Chinese decision making when purchasing a product. When given the scenario of purchasing one expensive item or lots of cheaper items, the reactions were unanimous. Each participant without hesitation replied yes to the following question: “would you rather save your money and then buy one item rather than lots of cheaper items?� Results from this question imply that Chinese consumers would prefer to invest a luxury staple piece that exhibits status and longevity to a lot of cheaper short-lived items. For example, they would rather save and invest in a Chanel handbag rather than buying 10 or 20+ cheaper (lower quality) items.

The distinctive culture has naturally provided the Chinese population with a system, where the majority aspire to promote themselves further in life. The correlation between each of these cultural dimensions shows the importance of status within the Chinese society. The Chinese consumers seem to share the same incentive; with perseverance and motivation comes power, and therefore, respect. Their lifestyle and unique cultural background influences their willingness to pay for luxury goods. They invest in luxury fashion products because they believe in the perceived brand value; the awareness and association with the brand is ultimately what convinces Chinese consumers to buy into luxury items. Additionally this can affect decision-making when shopping, along with the achieved status comes the increase desire to appear and look a certain way, which is one of the many reasons why the Chinese consumers (especially the growing middle class) buy into brands associated with luxury as means to enhance the social status. This can be applied to counterfeiting, for those who cannot afford to buy luxury but want to appear or seek a higher social status; evidently those are the consumers who will buy fake lookalike products.

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3.3 CONSUMER DEMAND Since China found themselves familiarised to new and western ways they have come accustomed to new modernised lifestyles, which is more visible in the younger generation who have been raised in a era where living has been inspired by the west: western technology, western ideas and western brands. In 2011, vogues Franca Sozzani stated: “They are all totally fascinated by the West and look to our designers, and not within themselves, for a new source of inspiration.” she also went onto say that it is now time for their generation, but in history western designers were their only reference in the fashion world. Tsui (2010, p.1) explained that because China is recognised as the largest garment-manufacturing centre internationally, they are generally regarded as a country that can only make or copy clothes, rather than actually create fashion. Demand is visible within China’s public media and mainstream markets, which are dominated by western names and international brands.

The increased exposure of luxury brands, along with the desire to promote them selves has developed a need for luxury, and status from a younger age. Statistics from CNN (2012) suggest that the average age of buyers in China is younger than most places; 28 years old is the average age for a person to by a Lamborghini in China, which 10 years younger than any other country. Likewise there have been recent sightings at Paris fashion week, were Chinese celebrities have been assembling on the front row (Charlton, 2012)(see fig.3). It is visible the country’s young actresses have developed an appreciation for western fashion, which is sure to filter through the rest of the consumer chain. Hilary Hollingworth explains that the Chinese students show an interest in fashion and it visible in the way they dress. It is clear that Chinese consumers are showing a developing interest in both luxury products and fashion, which suggests China would benefit from more brands with a visual and commercial presence, as a method to tackle the demand.

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FIG.3

The Chinese are evolving and so are their tastes. Recent evidence suggests the youth generation of China crave innovative luxury brands, and many travel across Europe, Asia and now the USA; in search for different brands to fulfil their retail needs (CNN, 2013; Rhodes, 2013; Reuters, 2013). During an interview on WSJ (2013) Erwan Rambourg explains that the USA is the worlds fastest growing luxury market, which is why Chinese consumers travel there to shop; there are endless amounts of shops, and visually it is inspiring. China needs to adopt a similar retail market in order to satisfy their consumers. To further enforce this, a conversation with Hollingworth arouse in attention to Hong Kong (see appendix B). Hong Kong, is off the mainland of China, however it is apparent that Hong Kong is a obvious shopping attraction for the Chinese: “there are lots more Chinese coming to Hong Kong for luxury brands buying lots of things and then going back.” Hong Kong’s visual presence was discussed further in regards to advertisements: “the ads whether its children or models they were all western looking models”. This expresses the extent of westernisation in Hong Kong, likewise it was described to have a vast amount of advertising. Conversely, participants from the Chinese society explained that they rarely pay attention to advertisements, because they do not fully understand them. (Appendix A).

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It is visible that the Chinese are showing an interest in western brands primarily due to the fact they exhibit luxury and status. Yet, this could be threatened as many Chinese consumers are developing their own tastes and personal preference in brands. There is also a larger demographic and more consumer profiles to consider when targeting the Chinese, but a few commonalities lie in their desire for exclusivity, and unique experiences beyond clothing. Ultimately they seek a luxury lifestyle; this consists of cars, holidays, special treatments, gifts or amenities, all of which can provide them with pleasure and make them feel truly unique and of importance (Jing Daily, 2013).

The result of this is creating added pressures for brands wanting to expand into the Chinese market. Western brands in particular will need to adapt to appeal to the complex needs of the Chinese consumer, they cannot rely solely on their current brand position, as this can be easily lost to more innovative luxury brands. Furthermore, the demand in China is likely to see a rise in counterfeit products due to the increased exposure, and consumption of brands in the country. This may happen in connection to the increased amount of factories making products for luxury brands. Interviewee Hilary Hollingworth explains: “The manufacture may if the order is for a 100 they might manage to get 102�. This on a large scale could dramatically affect brands, because manufactures are making products at a relatively high quality, with only some faults, which could result in a further demand of these products, profiting counterfeiters and not the brand. Consequently, forcing the consumers to consider the reasons why they initially pay premium prices in the first place.

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>>

3.4 SUMMARY The increased level of luxury spending in China shows the driving power of the Chinese. The consumer’s interest in the luxury lifestyle is largely influence by many Chinese cultural attributes, mainly their need for promoting themselves in a status driven society. It is apparent that the Chinese consumers play a large role in the success of the country, changes in the country mean the consumers are earning and spending more in-store and online, creating further demand and providing a ideal situation for luxury brands. However, the Chinese are becoming educated in brand awareness and gaining further knowledge of products; giving them a more sophisticated outlook on luxury products and value for money craving innovative products, quality and affordability.

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4.0 LUXURY VS

COUNTERFEIT

FIG.4

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4.1 OVERVIEW Counterfeit means to imitate, emulate, or copy something. The oversized supply and purchase of counterfeit products means it has become its own market, which affects brands globally. The focus group and interview helps to identify the scale and availability of counterfeit products in China, alongside the evolving luxury market. Additionally, evidence from a recent survey uncovers the demand for counterfeit products, determining which is more powerful, quality or price?

Whilst further investigations explore the challenges for luxury brands in China and how they are adapting, particularly against counterfeiters.

...

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4.2 COUNTERFEITING IN CHINA V China is commonly associated with counterfeiting. This is mainly due to the fact that China is the largest manufacturer of so many products; most of which are made cheaply (Lin, 2011; Weigley, 2013) Luxury goods are common target of counterfeits, Chevalier and Lu (2010, p.175) explains: “luxury is the most popular sector for counterfeiters, because it is cheap to copy and easy to sell”. Luxury brands usually demand higher prices, not only for the quality and design of the product but because the consumers have come to realise that certain brands represents status, and provide unique and personal services. Counterfeiters copy the products and sell them at distinctively lower price; they also use the brands name to entice customers, alongside the words ‘luxury’, falsely advertising the product to create the desired effect around the fake merchandise. Hopkins and Kontnik et al (2003, P.37) Explains: “By imitating the brand, the counterfeiter bypasses all the expenses incurred in developing, producing, marketing and servicing the brand. Yet they can receive a relatively high return for their counterfeit products” It is a profitable market for counterfeiters and not much thought or skill is needed, It is needless to say that without demand there would be no need for supply, but many consumers seek a relationship with luxury products without the price tag that comes with it (Norum & Cuno, 2011). Additionally, Turnage (2013) states that during 2008 to 2010 almost 70% of all counterfeits seized globally come from China, further enforcing the global demand for counterfeit products.

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The situation emerging is of great concern due to the continuous growth of the Chinese market, according to The Financial Times (2007) many brands are not yet moving to China because they are worried about the threats of counterfeiting, in fear of designs being stolen. A report from Mintel (2009) also states that “Ninety-seven percent of brands are afraid that the current economy will lead to an increase of fake goods in the marketplace, and luxury brands are the most concerned, according to a survey by intellectual-property firm Marks & Clerk” One of the reasons for this situation is due to lack of intellectual property rights in China; defined as the rights given to people over the creation of their minds. Copyright laws and trademarks can secure this, however the lack of enforcement in China exposes brands to ‘copycats’ regardless (Lin, 2011, p.4), and not all brands have the power or money to drive a successful lawsuit against counterfeiters in China.

FIG.5

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FIG.6

The extents in which China produces and sells counterfeit products has lead to them becoming ‘the world’s leading counterfeiting superpower’ (chapter 2.0). The growth of the economy is assisting the counterfeit culture, Hargreaves (2012) states that in countries such as India and China, the more sophisticated factories become the larger the effects it is have on the type of products that can be counterfeited there. For example: Apparel, bags, watches and cosmetics are common examples of luxury products associated with counterfeiting, however, more recently there have been luxury products as complex as automobiles being copied. Top gear (2012) claimed that China is known for making fake Ferraris, Bentleys, Mazdas and Minis; it has been noted that China is directly copying car designs, but branding them differently( see fig.6). Mintel (2013) explains that there is an emerging concern for those operating in the replacement parts market, due to the rise of counterfeits. Products counterfeited in this area range from air filters, fan belts, valves and even break systems. This is both dangerous and damaging for businesses. Aston martin is a direct example of this, the company had to recall 17, 590 cars due to counterfeit materials, a report on Reuters (2014) further stated that Aston martin have made plans to move their productions of materials from China to the United kingdom as soon as possible.

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The driving force behind counterfeit products in China questions whether the Chinese understands counterfeiting to be unlawful. Primary research provided opinions on this matter, during the focus group discussion with five Chinese students questions were asked as to whether they feel counterfeiting is wrong. Results indicated that the students did not see the obvious answer to this, further examples were given to explain counterfeiting: ‘if you was to copy of someone’s work and receive the benefits, would you think this is wrong?’ In comparison to this, they believed it was wrong to copy. Nevertheless, earlier conversations indicated that counterfeit culture in China is somewhat the norm, and may be the reason why they do not directly see counterfeiting negatively. When asked about the counterfeiting in China, one participant reacted “Its everywhere” and another replied “Chinese people copy everything”, this is a very strong statement to make but the Chinese students remained unfazed by the effects of counterfeiting. Further responses demonstrate how common fake products are in China: “I make jokes with my sister and if although you buy a real one, the bag, the real one many people say oh its fake.” China’s association with counterfeits have become surprisingly normal to the Chinese consumer despite the consequences, which may be why the demand for counterfeits remains.

China has become over run with counterfeit products, research from both focus group and interview provides insight into the counterfeit market in China, stating that fake luxury products can generally be found in and amongst streets and markets in China (see appendix A and B). Interviewee Hilary Hollingworth also described the unlawful approach of counterfeiter using photographs as a tactic to entice customers “what people do is select and they are made to order or brought into order. Sometimes things are counterfeit, sometimes they’re seconds or sometimes they are what used to be called cabbage”.

This demonstrates the illegal act and shows the criminal behaviour of the counterfeiters in China. The reality of this is that the suppliers of luxury and counterfeit products are one in the same; Turnage (2013) explains that the same ecosystem made to support luxury manufacturing supports counterfeits in China. There can be a direct leakage of products from a legitimate supply chain, or indirectly where sources of suppliers and manufactures are established together to set up illegitimate manufacturing locations.

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FIG.7

...

The impact of the issue has lead to considerable discrimination of China. For instance, within Shenyang city there is a street that resembles and copy’s well-known western brands ( see fig.7), this is frowned upon and ridiculed in the media as seen in the daily mail (Blake, n.d): Just pop down to Wanda Square in the heart of the city and you’ll see a cornucopia of well-known brands - all with incredible knock-off prices.

Start your spree at HERWES PARIS before heading on to CNANEL for perfume, PRΛDΛ for clothes and Cairter or Tifeany & Co for that jewelry you always wanted.

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The visible threat of imitators in China is discouraging for brands, however this is said to have less effect on profits than perceived, Hollingworth explains: “They disrupt the market but the chances are that anyone buying them wouldn’t, they would never be customers for the real thing and the customers for the real thing wouldn’t entertain the counterfeit”. It is arguable that counterfeiters are more likely to effect brand image and status foremost, which may drive consumers away from the brand due to a loss of exclusivity and prestige, which will ultimately affect profits (Commuri, 2009).

The discussed evidence indicates that counterfeiting is a profitable and successful market on its own and is rising alongside China’s powerful economy. Counterfeit products are surprisingly available throughout China, and are affecting brands on a global scale due to the level of manufacturing, in correlation to Chinas trading facilities and the Internet. Hopkins and Kontnik et al (2003, p.18) suggests that technology advances, such as the growth of the Internet, will continue to drive sales of counterfeit products. Further stating, that for any business it is accounted as one of the most stable business assets to a company, providing a platform for counterfeiters to sell direct to consumers (Turnage, 2013). These contributing factors can only suggest that counterfeit culture will continue to thrive, and to prevent this from happening it is important to find the reasons for purchasing these products, in order to find out where the demand lies.

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4.3 QUALITY OR PRICE? The proposed question asks what is more important to consumers, quality or price?

Previous research shows that the Chinese primarily opt for quality, yet the counterfeit market in China is still vast, assisted by trading and export of goods outside of China.

The visible reasons have been identified as to why counterfeiting is profitable and growing market, however for what reasons do consumers buy counterfeit products?

In a recent survey, 100 random people were briefed on the counterfeit market and the scale of products sold, which is anything from: toys, computers, electronics, pharmaceuticals, food and more commonly clothing, watches/jewelry and handbags/wallets.

Results indicated that that 60% of people had bought a counterfeit product, and more specifying the main and most popular reason for purchasing was price with 29.31%, followed by the incentive to keep up with short-term trends at 18.97%. Expectedly quality was the most unpopular answer with only 1.72%. This suggest consumers want to follow and keep up with fashions varying trends but in a way that is affordable to them, accepting that with this compromise they will not be buying a quality product, which is were the demand lies within this market and within many countries who provide a platform for counterfeiters, similar to China.

Views differed when probed on their thoughts towards counterfeiting (see appendix c). Responses contained indications that if people had the money to buy real products then they would prefer to do so, whilst other opinions stress that they are good alternative if you cannot buy the ‘real deal’. Answers suggest that consumers are not fully aware of the consequences of counterfeiting, however they acknowledge the fact that it is wrong, but still buy them due to finances. In reflection to these comments price was a noticeable point made throughout, whether or not they were for or against fake product.

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Conversely, other replies expressed irritation towards fake products with comments such as: “Not acceptable, poor quality and rarely convincing�. Just less then half said they would not buy counterfeit products, for reasons that suggest that they buy into and respect brands and /or they are against counterfeiting. Alternatively comments imply that from experiences or those have more knowledge of the culture prefer to buy real products to counterfeits.

WOULD YOU BUY A COUNTERFEIT PRODUCT?

YES (57%)

NO (43%)

FIG.8

There are minor differences when comparing fake products to the authentic products, taking into consideration the appearance and functionality. The main difference lies in the quality, exclusivity and service provided when buying luxury products, and this comes with a substantial price tag. For consumers the main problem seems to be the decision between the need for quality and the condition of price. Ultimately price is the driving force behind counterfeiting. In many cases it seems quality is sacrificed due to price, with results concluding that 57% of people would buy a counterfeit product (see fig.8).

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4.4 BRANDS UNDER PRESSURE There are multiple challenges for brands in China highlighted within this case study including: cultural influences, Chinese consumers, technology, counterfeits and the lack of force on intellectual copyrights. So how do brands adjust and challenge the organised crime? Although the ever-growing market provides limitless opportunities and profitability, if brands do not develop in the evolving market they could lose their existing brand position, putting them at a potential loss. This means investing and developing consumer awareness (Chevalier & Lu, 2010, p.13).

Louis Vuitton, Hermes, Gucci, Chanel and Prada are arguably favourable brands in China. According to a survey by Huran report on Chinese Luxury Consumers (Roberts, 2014), the reputable fashion houses have been the most sought after brands within China but In effect, even these brands are facing increased pressures. Louis Vuitton is a Prime example. An article on Jing Daily (2013) explains how LVMH has adapted in China’s evolving market; stating that the brand has made a decision to move away from its trademark LV emblem in China, the main reason being the availability of fake products, which may have contributed to diluting the brands image. Other visible tactics have been used to reassert its exclusive brand image, whilst also attracting the Chinese luxury consumer including using actress Fan Bingbing as their brand ambassador (see fig.9 )and model Lui Wen in an ad for their Les Foulards D’Artistes artist scarf design collaboration (see fig.10) . Since changes, it is said that Louis Vuitton is seeing positive results, and further improvements are seeing LV tackling counterfeiters. As quoted by Jing Daily (2013) “Alibaba and Louis Vuitton signed a Memorandum of Understanding on October 11, 2013 that will include several preventive measures to stop fakes, such as a takedown system which will shut down the webpages selling them”. Understandably, this cannot stop people from going to different sources to buy fakes, but it is sure to be an active enforcement against counterfeiters.

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FIG.9

>> 49

FIG.10

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Louis Vuitton has been able to increase their appeal in the market, and other brands have been said to be doing the same, including Chanel. Brands like Chanel are taking a more strategic approach; focusing on limiting stores and driving the exclusivity of the brand. Enforcing Commuri’s (2009) statement “Efforts are made at making brands prestigious and exclusive. For brands to be perceived as such, they must be widely popular but not widely accessible”. By being selective Chanel can focus on driving the luxury aspect of the brand, which is so far seeing positive results. The Daily Mail (2013) stated that, Chanel has been ranked China’s favourite luxury fashion brand.

Chinese consumers are evolving and noticeably they are seeking brand diversity and innovation, furthermore their Inability to reason with the laws and legislations against counterfeiting is a on going battle and one which is unlikely to see change any time soon, therefore the alterations brands are making to the way they portray themselves in China is vital to securing the brand image, in particular luxury brands. By avoiding the over use of logos and prints representative of the brand they are disrupting the counterfeit market, because many consumers associate these signature prints and designs with brands, which is one of the reasons why people buy counterfeit products. Subsequently, this is making it harder for counterfeiters when selling their fake products because they are not obviously branded; making them less identifiable with the brand.

Although many large western brands such as Louis Vuitton and Chanel are willing to take the risk and are investing in the Chinese market, it is somewhat more difficult for smaller brands, because they do not have the brand awareness and may not be able to make a quick profit. Nevertheless, there is less threat of counterfeiting but still a need for protection against imitators. Therefore, if smaller brands are willing to make the investment, the market in China is set to mature extremely fast, leaving room and demand for smaller luxury niche brands (Chevalier & Lu, 2010, p.15)

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There is a lack of enforcement against Intellectual property rights in China, Lin (2011, P.5) explains that “in a knowledge-based economy, in which value is placed less on tangible goods and more on creative invention of ideas and designs, the infringement of intellectual property rights has become a global economic concern” the counterfeit culture is expanding in scope and size, and with added internet platforms for counterfeiters to directly sell to consumers on a global scale there is added pressures for brands. Chevalier & Lu (2010) demonstrates the potential of the counterfeit market: The 1970s and 1980s when the quality of the products – generally sold by merchants on the street- was very poor and prices were very cheap. This presented no real threat to the luxury brands, but with the democratization of luxury through the media and new technologies created a huge potential international market.

Law enforcement is needed now more than ever but authorities and brands lack control in China, even though China is a leading manufacture they have less experience in building and shielding brands. Since 2001, China has been involved in a number of international patent, trademark, and copyright infringement cases (WorldWatch, n.d). There are few changes being made by local authorities and in some cases brands are being denied property rights, Hopkin and Kontnik et al (2003, p.189) elucidates that there are countries which do not have any laws to prevent or prohibit counterfeiting, and those that do are poorly developed legal systems which makes it incredibly hard to enforce the laws.

It may be a battle to conquer the situation at hand; nevertheless there is movement in laws to prevent the growing problem. The China anti-counterfeiting coalition (CACC) currently known as Quality brands protection committee, working alongside the Chinese government challenging counterfeit suppliers and coming up with solutions to help the growing problem. Conclusively Laws will help prevent counterfeiting but this won’t secure the future of brands in China. To survive in China brands will need to challenge fraudsters and develop a further understanding of Chinese consumers. Atwal and Williams (2009) explains that brands can only achieve the greatest level of success if they connect with consumers.

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4.5 Summary The country has become a growth market for luxury brands in every industry from fashion to automobiles; likewise the counterfeiting market is seeing growth. China has been replicating luxury products for many years, but an increase in consumer demand for luxury products, as well as todays innovative technologies are assisting the development. The advanced manufacturing in China is assisting the production and speed of the goods, making it easier to replicate fashions as soon as they appear on the catwalk; allowing the counterfeiters to keep up with the industry, and its fast turn around. It appears that consumers are becoming satisfied with fake products because of the price at which they can acquire them, and the products association to a certain brand or trend. This is putting brands at risk, and understandably this may suggest to consumers why they pay the premium price that brands request. In consideration to this, it seems wherever there is luxury, there will be counterfeiting.

Growth is providing further opportunities for brands, however there are many other challenges to face as well as counterfeiting. The sophistication of the Chinese consumers is demanding more from luxury brands and craving exclusivity, creating a highly competitive environment. Ultimately, new laws and strategic approaches to the market are needed to secure a future in China.

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5.0 THE CASE OF BURBERRY

FIG.11

5.1 OVERVIEW As discussed China hold endless opportunities and profit for brands, if the market is approached correctly. It also adds potential threat and pressure, especially in relation to counterfeiting. Burberry is a direct example of this; their signature plaid has made them a recognisable target of counterfeiting, and has damaged the brands image in the past. Remarkably, they have been able to turn the brand around, but threats still lie ahead as Burberry takes to China. The question stands to whether they will be able to maintain their brand position and exclusivity in the competitive Chinese market?

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5.2 Burberry heritage

FIG.12 Burberry is a British luxury brand founded in 1856 by dressmaker Thomas Burberry, credited for inventing a waterproof and breathable fabric, designed for their statement trench coat, which was renowned during the First World War.(see fig.12) Since the 1920’s, the now famous Burberry check became the brands trademark, embedded in the brands range of products from apparel to accessories. The development of these brand aesthetics continue to drive the brands success, as explained on Burberryplc.Com: “Digital luxury positioning and the optimisation across innovative mediums of the trench coat, trademark check and Prorsum knight heritage icons make the brand purer, more compelling and more relevant globally, across genders and generations.� Burberry is a now a globally recognised luxury fashion brand, with over 500 stores worldwide and an online interactive website. (Hamiede, 2011; Thomson, 2012; Burberryplc, n.d)

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5.3 Reinventing the brand In the UK Burberry is recognised as one of the most notoriously copied brands. During the 90’s, Burberry hit a downturn; the brand was adopted by label conscious British youths, known as the ‘chav’. The chav culture tarnished the brands image due to its iconic ‘Haymarket’ check being overly consumed by this low class social group, also related to football hooligans (Tungate, 2008, p.29). The check pattern was the most noticeable attribute associated with the ‘chav’ along with over accessorised fake gold ‘bling’. During an interview with the Telegraph (Wallop, 2005) former finance director Stacey Cartwright said: “most chavs wore counterfeit Burberry”. At the time there was a lack of control over the brands licenced products and it’s trademark rights.

Subsequently, they became a direct target of counterfeiting. Products branded with the Burberry check were easily accessible amongst many high-street markets in Britain, aiding the ‘chav’ culture and forcing out Burberrys exclusivity. Consequently, Burberry was no longer perceived as a luxury brand (Hamiede, 2011, P.102).

In response to this, Burberry made a strategic plan to turn the brand around. In 1997 former CEO Rose Marie Bravo began the transformations keeping in mind the brands aesthetic values and by making a number of changes, including hiring management experienced in interpreting and analysing consumer market trends. Bravo also made the decision to change the brands name from Burberrys to Burberry, accompanied by a new logo design and packaging. The aim was to reintroduce Burberry, as luxury brand that is both aspirational and functional. The brand took tighter control over licencing and more noticeably the brand decreased the visibility of the check within its products, with help from creative director Christopher Bailey in 2000. They approached the check in a more subtle way as not to destroy it, using it in less obvious places such as, the lining or under a collar. Furthermore, they created another label Burberry Prorsum, which remains check free. The renovation helped them steer away from the brands late discrepancies and paved their path to success (Hamiede, 2011, p.102; The Economist, 2011).

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...

>

FIG.13

FIG.14

...

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Bailey is responsible for the brands overall image and creative direction and is highly credited for “driving Burberrys global success” (Vogue UK, 2013). Alongside current CEO Angela Ahrendt, who took over Bravos role in 2006. The successful duo has reinvigorated the brand with innovative and digital initiatives, which has set them apart from other luxury brands. As part of Ahrendt vision Burberry launched artofthetrench.com, a digital platform where customers can buy and learn about the iconic trench; as well as being able to share photos of their own trenches through Facebook. Ahrendts channeled the brands British heritage by reestablishing the trench coat, more importantly herself and bailey focused on driving this throughout the brand, during an exclusive interview with Amed (2013), Ahrendts said: “We are British, everything we do has got to be quintessentially British. The music, the models, everything… and that was going to be a huge differentiator, and the outerwear. We were born from a coat. It’s what we are, it’s our DNA.” This approach helped to identify the brands position as a British luxury brand on a global scale, were it is now considered one of few brands that is classic yet contemporary (Hamiede, 2011. P. 104).

Burberry took it to yet another level when they introduced ‘Burberry world live’ an in-store digital experience (see fig.14), as explained on Burberryplc.com: “Introducing the concept of ‘Burberry World Live’, Regent Street blurred the physical and the digital to bring all aspects of burberry.com (‘Burberry World’) to life in a meticulously-restored heritage space.” By integrating the physical with the digital Burberry has been acknowledged as the most digital advanced luxury brand, (LS:N Global, 2012). The repositioning of the brand has been recognised globally, for the forth- consecutive year Burberry has been list on Interbrand’s (2013) annual report on ‘best global brands’, noted for “strengthening its position as a global luxury leader”. In reflection to the brands history Burberry has emerged relatively unmarked thanks Bailey and Ahrendts who have lead Burberry to its current position as one of the world most pioneering luxury brands.

Likewise, the brand is set to expand even further in 2014, and in the secure hands of Christopher Bailey who is taking over as CEO alongside his role as chief creative office.

Bailey faces the challenge of balancing both creative and business side of the fashion label. (Sowray, 2014; Hamiede, 2011, p.105; Passariello, 2014)

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5.2 BURBERRY IN CHINA

FIG.15 As Burberry steps forward in the luxury fashion world, it is expanding its retail presence, opening new flagship stores internationally, and China has become a priority.

With 75 stores in China including a flagship in Beijing, Burberry is developing Chinese followers, according to Ratner (2013) “Burberry, he said, appears to be outperforming its peers in China as a result of the continued evolution of its store portfolio, brand elevation and digital innovation.� Burberry in China is highly reputable. The brand communicates true London style, which is young and fashionable, alongside its modern twist on its British heritage, which has managed to attract young and rich Chinese consumers. Likewise, the Chinese are recognised for buying into luxury products to promote social status whilst seeking innovative brands that represent success and prestige, which Burberry has communicated well in China. In April 2011, Burberry opened its first high tech store in Beijing, which was done with a parade of holograms.

The event was the largest public relations event ever seen in China by a luxury brand, and it received great responses throughout the country (Marketing China, 2014).

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Bergin and Reuters (2013) explains that the Asia Pacific region accounted for 37% of revenues in 2013, placing China as one of Burberrys top markets. Butler and Rankin (2014) further stated that Burberrys shares rose “nearly 5% to £15.39, as the company revealed better than expected trading in Asia, particularly Mainland China where growth rose by double-digit percentages“. Figures highlight a successful performance; the Chinese market is proving to be significantly important to the brand, however similar to other luxury brands like Louis Vuitton (Chapter 4.0), Burberry is under added pressure. China’s reputation as the ‘counterfeit superpower’ means Burberry has had to take extra precautions to prevent any negative reoccurrences. As stated by Hamiede (2011,p.105): “After repositioning the brand, Burberry faces the challenges of maintain an defending its position and managing its own growth”. Burberry understands the consequences against potential threats to the brands and they are once again taking control and fighting for its trademark beige black and red check in China (The Business of Fashion, 2013; Bergin and Reuters, 2014; Marketing China, 2014).

Burberry is fighting for protection over its check, which is part of an on-going dispute with Chinese brand Polo Santa Roberta, who believes Burberry should not be given the rights to the check pattern. In 2013, Chinese trademark authorities agreed with the Chinese brand that Burberry had lost the rights to the trademark, due to claims that the label had not used it in the country for three consecutive years. Burberry has since filled an appeal against court rulings and is continuing to enforce its trademark across its products on grounds that it is strongly identified with the brand. Polo Santa Roberta bares a similar check and during the appeal they are reported to be making a loss due to allegations against them and sewing Burberry for damages. As mentioned

by Tay (2013) for Australian Network News, the battle could last up to 5 or 6 years, but Burberry made a statement that said, “We are confident that our appeal will be successful”. The brand cannot risk losing exclusivity and credibility in China and they will continue to purse their rights. (The business of Fashion, 2013)

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In relation to this, Burberry has already been award ÂŁ63 million in a case against Chinese Internet counterfeiters, which goes to there defence. Burberry was given the rights to all infringed websites that possessed the Burberry name and imitations of Burberry products. According to Sowray (2012) the brand was given further control over Internet parties associated with fraudulent websites: Burberry has won the right to intercept any associated monies held by PayPal Inc. - the payment processor for the counterfeit sites - and will also now be able to hold third parties such as Google, Twitter and Facebook accountable for associating with the various sites.

The brand has been under a notorious battle against counterfeiting for many years, and if the decision is upheld in China it could leave Burberrys check open to rivals. Unavoidably this could cause a wide spread of imitation of products and Burberry could lose exclusivity and most of all part of the brands heritage.

5.3 SUMMARY Burberry has successfully been repositioned as a luxury brand, leading in digital innovation. Its heritage and brand aesthetics are proving to be popular in the Chinese market, however, it is vital for the brand to take extra provisions in the country renowned for making and selling counterfeit products. Its earlier tribulations with the ‘chav’ culture only had a significant effect on Burberry in the UK, even though there was over 30 licences world wide displaying the Burberry name. The brand was able to regain control of its licencing which allowed them to rebuild the company. More importantly, if this was to reoccur on a global stage the effects could be much more damaging for the brand. Hence why Burberry is re-enforcing control of its intellectual copyrights in China, especially its trademark check, which is synonymous with the brand. Burberry have placed themselves in a great position in China and are taking every measure to ensure the brand is not damaged by the counterfeit culture.

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6.0

CONCLUSION

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The aim of this case study was to understand and explain the on going relationship between luxury brands and counterfeit products, particularly in the world’s fastest growing economy, China. The study has been broke down into 4 key chapters as a guide. Starting with the Chinese market, which provided grounds to help inform and understand the following chapters. Historical context found through secondary research provided initial understanding of the Chinese market. It appears that China’s late economic developments have affected the creativity on the Chinese; particularly fashion. There has been a lack in Chinese fashion brands and designers for many years, hence why it has become a growth market for western luxury brands. The current market situation in China is driving appeal for businesses in the luxury sector, with key incentives from manufacturing, trading and the growing middle class. China is proving to be a force field for the luxury market, for both the west and the east and will have a significant influence on other countries. Making Chins a crucial component and method to success, even with the threats of counterfeiting.

The next step was to gather an understanding of the Chinese consumers and their culture. Research uncovered the teachings of Confucianism, which provided vital knowledge and understanding of consumer behaviour. Further studies such as the Hofstede’s (2001) cultural dimensions theory identified the Chinese cultures influence on brand consumption. Key findings justify the importance of respect particularly to those of a higher social ranking. More so, studies indicate those of a higher ranking can influence another person’s decision. Similarly, other characteristics show their perseverance and that they are success orientated; signifying their strong work ethic, as well as a interest in investment and long term goals. All of which indicate their pursuit for a higher social status; exemplifying the reasons why they seek and consume luxury products that represent prestige and quality. This is reinforced by primary research results from a focus group, that identifies the Chinese students preference on quality, and how valuable brand status is to them. Further outcomes suggest that there is a demand for luxury products in China, and consumers are becoming more knowledgeable of luxury brands and craving innovation and exclusivity.

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The findings from previous chapters were then applied to the market and counterfeiting in China, as a method to understand the challenges for luxury brands. Primary research results from both focus group and interview demonstrates China’s association with counterfeiting. Both sources explain that fake products are easily available and can be found on many markets and streets, Hilary Hollingworth also explained that even in malls counterfeiters with pictures of products could approach you. The Chinese students commented on how “Chinese people copy everything�, which emphasised how it has become part of the norm in China. This lead to the question of what was more important quality or price? Primary research in the form of a survey proved that price was the fundamental reasons behind the purchase of counterfeit products. Further results indicated that 57% out of 100 people would still buy a counterfeit product, which adds belief to why it is a growing market.

Several sources have proven that investment and consumer awareness is needed for brands in China, in order to appeal to the consumer and to avoid the threats of counterfeiting (Chevalier & Lu, 2010; Jacques, 2009; Hopkins & Kontnik et el 2003; Lin, 2011; Jing Daily, 2013). China has become a battle ground for brands wanting to protect their intellectual rights, and many luxury brands are already adapting to the Chinese market, including the likes of, Louis Vuitton and Chanel who are taking very strategic approaches to ensure their brands position. This entails Chinese ambassadors and models, and a reduction in stores to drive appeal and exclusiveness. However, for now there is still a insignificant amount of laws to prevent counterfeiting and It seems where there is luxury there will be a counterfeit product made and sold cheaper, regardless of the laws, because there are no real formidable consequences.

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To add further context to the study, the case of Burberry was then explored. This demonstrated the importance of China and the benefits it can have on a brand if approached correctly. It has been revealed that Burberry has seen better than expected sales in China, and appears to be out performing its rivals due to the brands aesthetics and advanced digital technology. The difficulty is maintaining their brand position and exclusivity as they continue to fight for their rights over there trademark check, to avoid any negative reoccurrences. Furthermore it was discovered that Burberry has already won a case against Chinese counterfeiters, however, the case against Polo Santa Roberta could take many years to be settled.

In conclusion to this, future studies could analyse the forthcoming changes in China, as brands challenge the counterfeit market. Further reasearch could also look at the case of Burberry and the future of the brand in China.

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7.0 REFERENCES 7.1 BOOKS

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Hopkin, D. M., Kontnik, L. T. & Turnage, M. T. (2003). Counterfeiting exposed. New Jersey: John Wiley & Sons.

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7.4 VIDEOS Bloomberg. (2013). China’s changing tastes creating new growth: mauron. [Video File] retrieved from: http://www.bloomberg.com/video/china-s-changing-tastes-creating-new-growth-mauron-JaPUj6h2Q~esrzmLPEKYyg.html.

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9.0 APPENDICES 9.1 APPENDIX A- focus group DATE:

14th January 2014

PARTICIPANTS: Five members of the university of Huddersfield Chinese society: Participant 1 - Jiaqi xue aka Angel, age 22 Participant 2 - Anqi xiao aka Anton, age 22 Participant 3 - Pong-hsuan Li AKA Sophia Li, age 21 Participant 4 - Rui Yang aka David Yang, age 22 Participant 5 - Yu zhihui aka Tina, age 22

METHODOLOGY A focus group with Chinese students was organised to gather a greater understanding of the Chinese culture and they’re purchasing habits, in regards to their preference on quality or price. Key questions were asked in relation to the counterfeit market in China, to find out how available fake products are and where they can be found/purchased. Further answers discussed their opinions on western fashion and counterfeiting.

TRANSCRIPTION

If you are from china what area do/did you live in?

An. The East of China A. From south of China, Gungzhou S. Taiwan. There is still argument between China and Taiwan that Taiwan belongs to China D. Changsha the capital of Hunan Province it is central of China T. Beijing the capital of China Do you take part in any Religious practice?

An. Christian A. No S. No T. No D. No Is it important for the older generation? Your parents or grandparents?

An. Yes

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What about the rest of you?

S. No T. No D. No A. No Do you speak more than one language?

An. Chinese and English Do you all speak Chinese and English or do any of you speak any different languages?

An. Yeah but I think some local language S. Dialect A. Yeah local language D. Yeah T. Yeah An. Yeah like dialect, In China from different areas people always speak differently Oh that is really interesting so you adapt your language to where ever you go?

S. Yeah like In Hong Kong some speak Cantonease and in Taiwan sometimes we speak Taiwanese The next question is, is there anything you would say is significantly important in Chinese history?

An. Erm I will think about that.

S. The time when Taiwan was occupied by Japan A. Yes Yes it was the Second World War, it was 1894 no 1895 to 1945 50 years?

A. Yeah 50 years T. Yeah D. Yeah An. And before 1997 the Hong Kong was took over by UK So do Hong Kong have their own dependence now?

An. Well yeah A. Approximately 99years, a very long time An. And now British people go to Hong Kong and they don’t know any wiser but people like me know.

So would you say China was run by the UK or part of it?

S. Yeah because several countries they kind of ripped China apart An. Yeah

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So do you think it affected you growing up in any way?

An. I think so because Hong Kong was occupied by the UK before. I think now they are close to being well developed, there are still many things to learn Do you think when the UK did own China there was a lot of UK influences within the country? Or was it still traditional? Or do you think things have changed now because of the UK? An. Historically yes but I think now UK don’t interfere T. I think there are quite a lot of influences in Hong Kong D. Yeah T. Their English is quite important. It’s quite hard to speak mandarin with Hong Kong sometimes An. Yeah sometimes T. They are better at English then Chinese An. In Hong Kong some schools are just English Oh really, some schools are just English?

An. Yes just English Wow, I didn’t know that. So are there a lot of English people who live in Hong Kong?

An. Yeah A. Yeah S. Yeah An. It is very easy for British people to go to Hong Kong Do you think they go for work or study?

An. Maybe both What influenced your decision to come and study in England?

S. I wanted to study abroad and I didn’t finish my high school course so I was advised me to come here and to this uni.

Basically I couldn’t go to America so I come to the UK. So do the Chinese prefer to go to America than the UK? D. Well I would say so, I lived in the United States for 2 years before the UK, and Chinese people seem to choose between the UK and the United States. Some of the local Chinese boy prefer to go to America because some famous national school, famous bar, famous athlete or famous players are from America, I think most Chinese girls prefer to come to the UK. So you think the males prefer to go to America and the females prefer to come to the UK? D. Yes I would say so And do you think that is because of the celebrity influences and the idea of fame in America?

D. I think for most of the Chinese girls they don’t like to watch athletes or sports and for most of the summer boys like to this. There is more entertainment. When I lived in Los Angeles I lived local to the town centre and I could go anywhere whenever I want, there was a lot of entertainment. There was so much to do at anytime.

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So if you are saying the males prefer to go America for the sports and entertainment why do you think females prefer to come to the UK? D. For the Chinese females?

Yes D. I think for a lot of reasons, I think they like the UK’s culture.

So can I ask what you 3 ladies like about the UK? Is there anything that really attracts you the UK? An. I really like the lifestyle here. I think people here are more to life than work, but in China people are always working, they work really hard.

Yeah, So would you say that in China everyone is very work-driven?

An. Yes there is a lot of competition because there are a lot of people in China.

The next question is, is respect important to you?

An. Yes I think respect is important to everyone.

D. Yes it is A. Yes, opening the door S. Yes, we pay attention when others are talking T. I think it is to a lot of people Is it something you were brought up with?

An. Yes it is kind of politeness Was you raised in way were your family told you that you need to be respectful and polite from a very young age?

An. Yes I think so Is it an unconscious act? Do you not have to think about it?

An. I think we do, I think sometimes we argue when others speak but we still listen.

How important are opinions from your friends and family? Would you put their opinions above your own? For example if they didn’t want you to do something would you still do it?

D. 50/50. It depends on different situations S. Family’s opinions are important when making some decisions An. I think opinions from others are quite important for me because I just think that my opinion is most important as well but when I do something I should consider other, because if I do something just for myself or look at something or if I just think on my own just for myself sometimes I can just do something wrong So do you prefer to speak to family and friends before you do something?

An. Important decisions A. It is very important from my family, and friend’s views also impact my thinking.

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Tina is it the same for you, are opinions important to you from you family and friends?

T. I will listen to their opinions, but I also have my own opinions and if I think they are right I will follow them or otherwise I will just follow my own opinions.

Would you speak to them first before you made a decision?

T. Yes I would speak to them first Has living in the UK changed your lifestyle in anyway?

An. Erm in the UK I go to gym but I don’t do that in China, and I think the UK most shops close really early, that’s the one think I don’t like, honestly.

What time do retail stores stay open till in China? Is it late?

An. Maybe 9 or 10 o’clock 9 or 10 at night? Is that on a regular basis?

D. Some times over night!

Over night really, What types of shops stay open over night?

D. Ye overnight. Sometimes, local shops, supermarkets S. Shopping Malls An. Shopping malls yeah, the malls are normally 9 or 10 it just depends Is it like that all year round?

An. Yeah And you don’t like England’s shops shut early?

D. No An. No S. No A. No T. No Because the shops are open later in China does that make you want to shop more?

D. Ye An. Ye S. Ye D. Definitely Have any of you ever been shopping over night?

An. Till very late ye D. I have, my sisters and cousins do but I prefer to stay at home at night and watch a film

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Is there anything else you think is different about living in the UK? An. Food A. Ye Food, I eat more fried food like chips Why what is the food like?

An. I think Chinese foods are....

S. Very different, like rice A. There is more vegetables An. Spring vegetables, rice dumplings So you do you all still prefer to eat Chinese food? Do you cook your own food?

An. Ye, Sometimes A. Sometimes we cook sometimes we just eat in restaurants Is the same food still available to buy in England?

An. some products are more expensive to buy in England, the Chinese ingredients. There is one shop in Huddersfield were you can buy Chinese ingredients S. The food is more expensive so I prefer to cook How different is Chinese culture compared to the British culture?

D. Study, if your in class and you wanted to ask you tutor some questions, we in China would have to raise are hand first and say can I ask you some questions and he or she would say no you cant or yes you can. Here they say you can ask us anything at anytime, you can just say can I ask you some questions and they say ye go for it.

It is very different here, you have been raised to always ask first and here in England you will get people in class just speaking over the tutors and interrupting An. Yeah and in China if we wanted to speak to tutors we would always have to stand up D. Yeah and you would always say good morning sir That is very polite D. Yes and if you didn’t do that it’s not respectful.

Is fashion in China different to the UK? Is it important in China?

An. I think it is to small group of people not all, its different because some people are really confident in themselves and they will dress up and wear make up and I think in China partying is not as popular as here so we don’t buy party clothes Do people like to follow trends in China? are they fashion driven?

An. Only some people do that, in my opinion

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What do you think about the UK, when you look around do you think a lot more people are fashion driven?

AN. Yeah the hairstyles and the clothes‌ and also tattoos many British people like that but not much in China So do you think we concentrate a lot on appearance?

An. Yeah D. Ye Do not many people have tattoos in China?

An. No only a few of them Would it be a bad thing to have tattoos in China, would your parents go mad at you?

AN. Yeah they would be shocked Is it the same with piercings?

An. Ear piercing is okay but nose or on the face no.

Do any of your family dress in traditional Chinese clothing?

An. Only special occasions Do any of your family or grandparents?

All. No Really no one.

An. No but I think traditional Chinese clothing is very beautiful.

Are you interested in fashion/clothing?

An. For my self no, I care but not that much, I want me to look good but I don’t really care.

A. No S. Not really I just wear the styles I like T. Its not that important for me D. Yes I am.

Do you like to look at Fashions and the way other people dress?

An. Yes D. Yeah very interest

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Are there any specific brands you like?

D. Gucci, Burberry, Louis Vuitton An. It’s quite expensive for students though Ye they are very expensive especially for students D. It’s much cheaper than China So brands are more expensive in China?

D. Yes because of the VAT and tax, I could buy this scarf in England for a 100 but it would be 200- 250 in China Is there a lot of places in China were you could get fake products?

An. Yeah D. Yeah S. Yeah T. Yeah A. Yeah Do you see it a lot in China?

An. Yeah D. Everywhere Do you think they copy products in China because luxury items are so highly priced?

An. Yeah Do they copy like high-street brands like Nike and Adidas or is it just high-end luxury fashion?

An. I think everything D. Yeah anything S. Any famous brand Oh right okay, if you wanted to buy a fake Burberry handbag for example would there be a specific place to go?

An. There are some like cheap markets and streets Who would you say they aim the fake products at Chinese people or travellers?

An. It’s for everyone…sometimes I make jokes with my sister and if although you buy a real one, the bag, the real one, many people say oh its fake.

Bags like chanel yeah?

Yeah. People also say that in the day you can tell if the bag is real, if its real they cuddle it, if its fake they don’t

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Yeahh, if I had a real Louis Vuitton I would be cuddling it. Do your parents buy into luxury brands?

An. Yeah sometimes D. Yeah T. No A. No S. No my parents don’t Do you thinks its a generation thing or awareness in the area or just family?

S. I think it depends on family, because different families have different values. My parents just don’t really care my sister’s do but my parents don’t really So are you interested in luxury brands?

S. Yes A Few Where do you prefer to buy your clothing from luxury stores or high street store?

T. Just high street. Luxury stores are too expensive for students.

An. At the moment high-street A. Any depends on my mood and wallet D. Both S. Luxury What is your reason for purchasing luxury or High-Street?

S. Just by for the design, my mum would probably shop at high street stores but when I shop I prefer something a bit nicer Would you rather save your money and then buy one item rather then loads of cheaper items?

S. Yeah I would prefer that An. Yes D. Yes A. Yes T. Yes What is your favourite UK store?

D. Primark and the shop in the kingsgate near the o2 store … sportsdirect. They are cheap and have lots of sales Yeah they do, they have lots of sales. Would you say sales and special offers attract you to the shop?

D. Yeah but I would always pay higher prices for like shoes for better quality saying that I also like next and topman they have good shoes and I buy clothes like a top from next because I like the style and they are very fashionable.

When you purchasing a product/clothing do you look for quality or price?

D. Quality T. Both A. Focus on Quality first

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S. Both but I focus on better quality An. Both, clothing like coats, I want warm and high quality but I do buy things that are cheap and good looking but lack of quality.

Do you follow fashion trends?

An. Not that much T. Sometimes D. Yes I do S. Depends on style A. Not really Do you pay attention to high fashion advertising? If yes can you give and example of any advertisements you like?

All: No Do you read magazines or have you seen any big billboard advertisements in China?

An. Ye S. Yeah like Nike Did you pay attention to these advertisements? Do they influence you in any way?

S. Well sometimes, but sometimes I don’t really get it but it looks nice.

Would you say fashion would need to change the way they approach you? would you say advertisement and magazines don’t influence you to buy products?

An. Reputation I think is a good advertisement, If people no the brands and want to buy then it doesn’t matter if you advertise for us or not sometimes maybe some new brands need advertisements to let more people know about them.

Would celebrities in advertisements get more of you attention?

No reply (all shacking their heads) So advertisements is a no, do think that is one of the reasons brands struggle in China because the Chinese people don’t really pay attention to the advertisements?

An. We don’t pay much attention to advertisements but some people do, they are not for everyone.

What is your opinion of western fashion in china? The fashion in England?

An. Hmmmm You all don’t look to impressed.

D. When I first came to England if I would go to a bar and see a girl in a short skirt and dress and showing a lot I would think they was crazy, it like when I walk down the street or go anywhere you see a lot of people just kissing each other, if people would do this in China they would think they are crazy their A-holes but the longer I live in England the more I am used to it and think it doesn’t matter it’s a cultural thing.

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What is your opinion of counterfeit products?

An. Again I don’t care about the brand that much so if I like it I would buy it Because you like that product would you not prefer to buy the better quality and pay the extra or would you just buy the cheaper one? For example if you were given a choice and we brought in two bags one was real and one was fake and you had the money to buy it what would you do?

D. Absolutely the real one S. The real An. If I could afford it I duno maybe T. If I could afford it, the real one What about you Anton?

A. I don’t really no, quality so maybe real Do you think its bad that there are a lot of fake products in China? Or are you not bothered?

A. Yeah For example, do you think copying in general is bad? Like if one of you was to copy of Anton’s work and get the credit or a good mark for it do you think that is bad?

An. that’s not good A. No That is similar with products, they are copying someone else’s work.

S. No that’s not good. Sometimes the producer will be caught for copying because of copyrights An. Yeah Yeah Does it happen a lot? Were do you see this in the news?

S. Yeah yeah in Taiwan So do you think it is wrong?

A. Yeah it is wrong S. Yeah An. Yeah D. Yeah T. Yeah What is the counterfeit market like in china?

T. I am not familiar with the markets in China but there are lots of fakes S. The producers produce a huge amount of products and sell them at a very cheap price.

D. It looks like a street and there are some retailers on both sides of the road and people always ask for price and get more discount.

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A. Mainly fashion, people would not like to pay much more money to buy brands, because people have not built the viewpoint to respect the designer and their works. That will be a long process!

An. Chinese people copy everything

Angel: China has changed a lot, because I think China is a developing country and we learn a lot from other countries and fashion is just apart of it.

Ye I agree its everything, its more of a lifestyle.

Thank you all so much for coming, and thank you for organising it angel, it was lovely to meet you all.

END.

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9.2 appendix b - INTERVIEW DATE: 28th January 2014 INTERVIEWEE: Hilary Hollingworth: MA International Fashion Design Tutor

METHODOLOGY An interview was organised with tutor Hilary Hollingworth to gather an understanding of the Chinese market and a professional opinion on luxury brands and the counterfeit culture in China. In order to find out the presence of fashion brands and the availability of counterfeit products, as well as her knowledgeable opinion on counterfeiting.

TRANSCRIPT

Thank you for coming to start I just want to ask you a bit about your job role?

Here or when I go out or both?

Both if you have two types of job roles?

Well I’m course leader for the masters Ma in international fashion design and that’s here and I also teach fashion in sample development, which is design and producing garments that kind of project. When we go out to Hong Kong, over the years I have been out into different roles, the first role was actually teaching fashion media and promotion final year were we did a top up course, and we used to go out to teach for about 8 days at a time 3 times a year.

Is that teaching students in China?

Teaching students in Hong Kong, some of whom it was part time so some of them worked in China as well and we would go out 3 times a year teaching modules that are similar modules to the ones you’ll be doing case study was one of the things we did and now my role is going out too the same organisation, a different college within the same organisation and we have a franchise top up course were by all the teaching and assessment is done by the tutors there, were as original when we went out we did some of the teaching, local tutors did some teaching but we did all assessments and that I think the first time I went out was about 2005.

2005, and how often do you go?

I’ve been going 3 times a year but that’s not been every year since then because the original course ended there and then there was a gap of a year or two when I didn’t go out so about 3 times a year at the moment. I think I’ve been… its added up to about 22 times in that time.

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Would you say it’s easy to get around in china? Do many people speak English there?

Not in China itself What about Hong Kong?

In Hong Kong yes. Unless you get out into what they call the new territories which is getting near to China itself, the signs are in English and Cantonese and the, they drive on the same side of the road as we do, I mean because it was a British colony for so long a lot of things are very familiar. So Hong Kong really easy, I’ve been into China once and I’ve been at times into the new territories, which are still Hong Kong but more Chinese, and as you get out there it becomes more… you notice a change.

Ok so would you say Hong Kong is the most westernised?

Yes, yes and Hong Kong Island more than the other mainland side of Hong Kong What is you opinion of the country from your visits there?

Oh I think its…I like it very much, I like the, it’s a country were there seems to be a festival either being prepared for or just happened or every time you go there’s something going on What types of festivals, traditional festivals?

Year so the mid autumn festival, which has its rituals and its kind of traditions with it, well now everyone’s preparing of course for Chinese new year which is next Friday and so there is a lot of activity linked to that. There are festivals year around for different things.

Ye, would you say its visible when you are there of the history and the culture and the traditions?

Yes, certainly the traditions I think. I’m aware of the fact that the traditions like any traditions move on, you know that things develop differently, and particularly you notice in the restaurants, that some of the things which would traditionally would have been done have maybe changed a little and then something else would be added. The latest thing is washing; everything that is brought to the table, your hosts will wash with tea or water before they are passed out. Now that I think as far as I can work out it might be traditional but it would never be… it wouldn’t happen everywhere but it’s to do with the avian flu and things when they had the problems with the flu. Another interesting thing is you see people wearing facemasks at times Is that mainly in Hong Kong or further outside?

Not sure to much but certainly in Hong Kong and around and further out, and it can be that that’s someone who is doing a dirty job like who are they road sweepers and people who are working near the traffic, or we had students come into the classroom wearing them and we actually asked why, was it because they were afraid of getting germs and it isn’t they are afraid of spreading germs.

Oh right, that’s really interesting So if they have a cold they’ll wear them So it’s like a sign of respect as well?

Yes, its respect for people around you, they’ll wear a mask and its quite interesting. There are various things like that, in the chemist you will notice and the make up counters a lot of the products are to whiten skin.

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To whiten skin, whys that?

Yes to whiten skin, so they you know, they can try to look … errmm European?

Ye more European yes, a lot of the products they have don’t work for us because they are about whitening skin.

Wow that is really interesting. You wouldn’t thin they would do that because of there unique culture and their traditions and history even though they are so westernised.

Ye, another thing that Claire and I notice when we first went out there was, that in the advertising and in the ads whether its children or models they were all western looking models rather than Chinese models, and maybe that is changing a little Yes I was going to ask you about the advertisements in China, are there many? Can you find them everywhere?

Oh yes yes…lots and lots of very erm…innovative as well especially for the big brands in Hong Kong Is it like high-street brands and luxury brands you see?

Luxury brands more advertising for luxury brands than you see here on billboards absolutely everywhere, other things as well and high street yeah but definitely more advertising visually.

That’s quite unusual because when I spoke to Chinese students I asked them do they pay attention to advertisements and billboards and they all said they don’t really pay attention to them, so asked them do they think its because they as in brands need to change the way they advertise to the Chinese consumers, and they again didn’t really see the appeal.

No, it could be that they using to western, but there still, there must be a lot of money in the advertising industry, from that point of view. What we found talking to students was that Hong Kong certainly and all that luxury end of Hong Kong wasn’t something they were involved in, it was for maybe an elite group or western people passing through, but now in Hong Kong one of the changes is that there are lots more Chinese coming to Hong Kong for luxury brands buying lots of things and then going back.

Oh okay so are there many luxury brands there? If so which seem to be the most popular?

Well you see, Dior is always very visible and lots of places have the flagship stores. Harvey Nichols have just opened another store, which has now become the flagship, that is two they have in a area probably within a mile of each other, you see many more stores and lots of shopping malls and many luxury brands will be in a lot of them, but Dior certainly.

Armani has a huge complex there were they’ve got book shop, chocolates, flower shop all the whole restaurants, whole sort of Armani emporium sort of place.

Oh really do you think that works for them to have so many so close together, to maybe get the brand across?

I think it must do, it must do. I’ve not really identified whom they are appealing to but when you go in any of these stores you see people in them, and some them can be quite crowded at times. There’s a different attitude towards service, you know I would never go anywhere and feel I would be looked down on which you could do here.

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Yeah you could be here if you went in to any luxury brands store, it can be quite intimidating.

Yeah also you’ve got to get used to the fact that you feel they’re following you around, and you think do they think I’m going to pinch something but actually its not that at all, its so that as soon as you are ready they are there to help you. So it’s getting used to things like that.

Oh that is really good, I have read that Chanel unlike other brands they were saying they want to remain their exclusivity so they only have a few shops in China, and they keep them in a far distance away from each other, so it seems many luxury brands are changing the way they are approaching the market Ye, they ‘re looking at different ways, I mean you will also find brands that aren’t here label some brands, and also find that what the brands are offering to the Chinese market is different sometimes then here or in the west as it were. We went to a Vivienne Westwood fashion show whilst we was there because it was Hong Kong fashion week, and its fashion week everybody is there the WGSN people and everybody is there from all over the world. Any luxury brand you name will be there, French, Italian from the UK. Can you tell in the Chinese consumers that they appreciate fashion more now? Do they look fashionable?

Yes certainly were I go ye, and some of the fashion students really look fantastic, you know in the way their clothes and the things they have, and you also see trends you never see come here. I year ago there was a trend for wearing the frames of glasses without the lenses, so even if you had contact lenses you would wear the frames, but it was because the frames were so extraordinary.

Oh okay so my next question is after discussing luxury is have you ever seen counterfeit products whilst being there?

Oh ye ye, you can see there is different levels of it, is some of the markets in Hong Kong, the famous markets, the ladies markets you have people who have photographs of the latest handbags of whoever, and because it is all illegal of course they don’t have, well they might have something’s on the stall or stand but they wont have those bags on the stand but what people do is select and they are made to order or brought into order.

Sometimes things are counterfeit, sometimes they’re seconds or sometimes they are what used to be called cabbage. That is if a manufacturer is making for a customer, so maybe they are making handbags for Prada say, the company Prada will supply them with fabric, with all the buckles, the labelling everything they need in the quantities they need to make the number they’ve ordered, using very skilled people. Now maybe they are to have the Prada little badge copied somewhere, so its not quite the same but yeah they’ll come back, that why you gets really…they are exactly the same apart from the odd fastening perhaps or buckle or something, but I have seen them with all the right Prada things on, even Prada on the buckles and everything, but when you look inside they are not quite finished to the quality that you would expect and that’s because they have tried to squeeze another Ye they have tried to get one extra out of the materials. Do you see this in many places in China; will they’re be a full street or a market?

In the markets yeah, and there are people who are looking around the markets for people who they think will be likely to buy them. There is all sorts of things, like Montblanc pens and the little snow cap on top will be a funny shape or something like that.

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Yeah just slightly different, so what is your opinion of counterfeit products?

I don’t, I think they are just that, their counterfeit products. They disrupt the market but the chances are that anyone buying them wouldn’t, they would never be customers for the real thing and the customers for the real thing wouldn’t entertain the counterfeit So you they aren’t really losing out on anything?

I don’t think, I think the things like when Burberrys was taken up buy the sort of chav thing, that did more damage than counterfeit goods if you like, I think counterfeit goods in fashion, I think counterfeit goods were they’re like dodgy electrics or anything like that is really bad, and I think counterfeit is bad anywhere and in fashion its bad, but I don’t think its impact on the market is dramatic.

So do you think it will continue? Because it’s become it’s own market and there will always be people there to buy counterfeit?

Ye I think so. People who can… are happy to be deluded. I think so but I think for instance I was with someone who was buying a camera, and they was buying a cannon ixus and one of the things we were told, don’t go in go to these certain places to buy because they are the big chains that we might have here, comet or somewhere like that.

If you buy anything electrical you get from these places, you know its genuine its absolutely right where as this was just a little shop that sold cameras, and when this member of staff who is not here now, was looking at this camera it looked like the real thing, I had a look through the lens and we have ixus cameras at home and I could tell the lens wasn’t as good as it should have been, so that was a counterfeit. Quite often with counterfeit it’s the customer that is being cheat because they are not, they are still paying a decent price for it, but paying far more than you would have done for the quality of camera it was.

Yeah you may as well have paid the extra for the real product in some cases, so would you say that in China the luxury brands seem to be the most common counterfeit or would you say its electricals as well?

I think it can be just anything that people think they will make money on, because a lot or most manufacturing goes on in China and places were they are manufacturing anything that has been manufacture, if it can be copied and sold at a decent price more than it costs you to make it, people will do it whatever it is.

Okay well I’m not sure you will have heard of this but my final question is have you ever heard of or visited Wanda Square in Shenyang city?

No, no.

Shenyang city?

No because I haven’t been there so I wouldn’t necessarily look for it. In Hong Kong there are places like the lanes or Stanley market were there are a lot of legitimate trading goes on but people look out there.

(Shown Image of Wanda square) Oh I see yes I have heard of that

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Yeah they are like known brands and logos, like cnanel with an N and Prada without the line across the A and there’s starbocks.

Yes I saw that years ago when I was in India were there was a shop named herrods and it was in the green and gold. So yes I have heard of it.

Have you ever seen anything like that in Hong Kong?

No, I think it would be, I think it wouldn’t be allowed I think it would be close down fairly quick, because I think with Hong Kong its there reputation they are guarding Ye, do you think counterfeit products do have an effect on reputation even if they don’t effect profit of a brand?

Ye I think so, the one thing about luxury brands is the exclusivity isn’t it that you don’t see many people with it, and that’s what happens an example of this is the Burberry check Oh yes I am actually discussing that within my case study I think that is an example where a brand can be damaged, and the Burberry story and how they overcame that is quite an interesting one.

Ye, what is your opinion of the recent topic with Burberry were they have applied for protection over their trademark check pattern in China?

Yeah, I think that is a very difficult one because although we know it as Burberry check, you can go back to as long as there has been weaving there has been similar checks so it is very very difficult to apply a licence to something which is, its almost a natural occurrence, if you weave you weave checks and I think in, in sort of preserved engraves in particularly in the steps region of Russia and certain places they have found pre historic, I don’t know how long but BC they have found woven cloth that has similar patterns.

So saying that do you not think they will get the rights to that in China?

I don’t think so, I think they will probably find the Chinese did it first, so I think that would be a difficult one they’d have to do something else with it before they did that, but you know I could be wrong.

Yes I know what you mean; they did do a lot of things. Well that is all my questions, thank you so much and thank you for taking the time out to help.

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9.3 appendix c -SURVEY

DATE : 18st January 2014 - 28th January 2014 METHODOLOGY One hundered people from fashion and design courses, and multiple social media networks were asked to fill in a survey focused on counterfeiting. The survey was put together with the aim of finding out how unpopular or popular counterfeit products are, and to uncover the reasons why people purchase the fake goods. The last question gave people the freedom to vocalise their opinion on counterfeiting. The main purpose of this was to discover why the counterfeit culture is seeing considerable growth.

WOULDYOU YOU BUY BUY A A COUNTERFEIT WOULD COUNTERFEITPRODUCT? PRODUCT?

YES (57%)

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NO (43%)

HAVE YOU EVER BOUGHT A COUNTERFEIT PRODUCT THAT YOU ARE AWARE OF?

HAVE YOU EVER BOUGHT A COUNTERFEIT PRODUCT THAT YOU ARE AWARE OF?

YES (60%)

NO (29%)

UNSURE (11%)

IFIFYES, YOUR REASONS FOR FORBUYING BUYING COUNTERFEIT PRODUCTS? YES, WHAT WHAT ISISYOUR RESEASONS COUNTERFEIT PRODUCTS?

PRICE (29.31%) QUALITY (1.72%) TO KEEP UP WITH SHORT TERM TRENDS (18.97%) ACCESSIBILITY (6.9%) APPEARANCE (13.79%) PURPOSE (12.64%) I WOULD NEVER BUY A COUNTERFEIT PRODUCT (16.67%)

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WHAT IS YOUR OPINION ON COUNTERFEITING ?

1.

I don’t think its to bad for some things

2.

I would never go out of my way to buy a counterfeit product i think it is wrong

3.

I don’t see a real problem with it, its not like real brands are losing out on that much money as I would probably never be able to afford £5,000+ bag.

4.

I needed a purse whilst on holiday so I bought one for convenience reasons

5.

I have bought things in the past an they have been okay but i would find it embarrassing if people asked me if they was real or fake

6.

Its not right to buy a copy of a designer brand they put a lot of time and effort into the recognition of the brand so I believe its wrong to go and directly copy something some else has designed

7.

Really bad, they are just for people for who can’t afford the real

8.

I would only buy them to keep up with short term trends as buying a real purse or handbag would cost far too much and i think if you can get the exact same thing for cheaper then why not just buy it

9.

I think its wrong to buy fake goods its not fair on the designer

10.

Whilst on holiday there was fake/ copied goods strip in turkey I was aware they were fake but because they were such good copies it was hard not to buy anything!

11.

I think it is totally wrong to buy a copy of a designer its not fair that they produce a certain design and then a cheaper version is produced to buy

12.

I dont think I would buy huge statement pieces but purses and small leather goods that look as good as the real thing always tempt me when shopping in market stalls ect

13.

I think that they are good for the price aspect but a bad thing for the designers who created the originals. Copying is bad really but not everyone can afford to buy the real deal

14.

It depends upon the product. Many counterfeit products have adverse effects on the underlying industry i.e. film industry, music industry etc. However, purchasing a counterfeit Mulberry handbag has a minimal affect on Mulberry as those buying such imitations usually can not afford the original product. Consequently, Mulberry’s target customer base is negligibly affected. Most people however can a afford a DVD / CD, and furthermore imitations in this market do affect the Universal’s / Sony’s heavily. Medicinal counterfeits are particularly worrying to me given the lack of regulation / testing involved in these products. Overall counterfeit products can have a negative effect on the end user and the entity which it is imitating, but to varying degrees. In my opinion, the effect of counterfeit products should be assessed on a case by case basis.

15.

I think its ok to buy them to keep up with short term trends I would have no money if I always bought the real thing

16.

I have in the past for small things like accessories or a purse and no ones ever asked me if its fake so it doesn’t botherme

17.

There should be more laws to stop counterfeiters

18.

It was a really bad replica and it wasn’t that cheap so i wouldn’t do that again I’d rather save up and buy the real

19.

I really don’t agree wit it they are for people who can’t afford or don’t value the real designer

20.

Not to bad i don’t think

21.

Easy for short term trends

22. Stupid 23.

Although i don’t like the idea of fake products I’ve still bought them before because i can’t afford the real thing.

24.

Low quality

25.

not necessary

26.

Bad quality items that ruin the look of the genuine product

27.

Its good a bit too far. I often wonder if the real thing it actually ‘real’

28.

They are bad for the industry and are never of good quality. If you can’t afford the real thing , don’t even bother with counterfeit.

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29.

not very good for the real designer brand but they make such large profit they probably don’t mind.

30.

Should be banned

31.

Its not bad for me buying because i can’t afford the real deal but can imagine it being bad for business

32.

They piss me off. i work hard to buy my legit products & to them see someone with a cheap tacky looking fake version of my handbag. It grinds my gears. there are plenty of alternatives to buying say that Prada bag, you could get a lovely looking one from Topshop. It’s just not a fake badly made replica

33.

Ok

34.

Its seems as though such a product is common with the lower-classed society. as you may be aware, counterfeit products are often of luxury products and brands, and it is these products that are wanted by those lower-classed, who typically have no money but want it all. counterfeit products=cheap=high demad with those with low incomes (i generalised poor people, soz)

35.

Not acceptable, poor quality and rarely convincing

36.

Cheap, nasty made products. I bought some Ugg boots years ago, they were not much cheaper than the originals that I now own. But they were clearly fake albeit quite good fakes but fake all the same. I tried to get my money back but the seller on ebay continued to deny they were fake. I reported them to trading standards. In my opinion you get what you pay for.

Lesson learnt for me.

37.

Some counterfeit items seem to appear good quality alternatives & people should have the right to choose what they buy, given their financial circumstances. For those who can’t afford to purchase legitimate luxury items, or who choose to buy good copies, this should be legal. regulations should be introduced to ensure quality measures are good & to monitor products/ sales/ purchases

38.

If you buy counterfeit the quality is not as superior as the real thing and you’ll only end up having to buy it twice when it breaks, so buy correctly the first time and don’t put yourself at risk of a bad item/illegal activities.

39.

It’s an imitation, therefore not the real thing. I would rather wait & save and have the real thing so I knew that the item I had was how it was meant to be, real.

40.

Much more reasonably priced but does the same job! Probably costs the same to make as well!

41.

Usually poorer quality

42.

I don’t follow fashion as such so I have little interest in counterfeit products. I would buy something if it looked nice and was comfortable etc but it wouldn’t be just because its a copy of something trendy. I would and have bought counterfeit DVDs due to the price :)

43.

They are usually of a lower quality, not very durable and can occasionally be dangerous in the case of electrical products. I have purchased fake branded clothing and handbags in the past but now I’m more likely to purchase an unbranded alternative that is better quality than a fake or to save for the genuine product.

44.

I would never knowingly buy counterfeit because the items are usually substandard and of poor quality and in some cases dangerous. If I bought genuine i have confidence in the product. I am not a follower of fashion clothing my purchases tend to be white goods or car parts. Increasingly car parts are being copied and do not carry a guarantee or are made to the same standard. Question 2 asked if I’d bought a conterfeit item,my answer was yes but unknowingly. I purchased something from EBay and I returned it. There was no option befitting of the answer.

45.

Tend to be rubbish

46.

There will always be a market for it as the originals are so expensive. Perhaps if the originals weren’t as expensive people may pay that extra to for quality

47.

If they are good quality at a good price then I would purchase counterfeit over the real item sometimes due to difference in cost.

48.

It depends on the product. If it was a small accessory I would probably buy a fake but for a big item like a coat or maybe a watch I’d keep for a long time then I’d buy the real thing

49.

It’s wrong

50.

If it was so damaging to brands I think we would here about it a lot more, but its so popular and so many people do it so it can’t be that bad for business

51.

I have bought a fakes before but it just isn’t the same as buying the real thing you don’t get the same feeling of satisfaction

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52.

I don’t think its such a big deal

53.

As a fashion student I am aware of the problems counterfeit goods cause, they cost the uk market millions of pounds every year however, I think the argument that a individual who buys a counterfeit mulberry handbag cannot afford the genuine item anyway therefor this sale is not taking away from the brand itself.

54.

They are good for personal use (as long as they are safe), they shouldn’t be given as presents to people who are not aware they are fakes.

55.

A cheap way to keep up with trends

56.

Cheap, Lacking in quality. And you end up buying the original instead so works out more expensive.

57.

I have only bought a couple of bags in Spain and probably would not buy counterfeit of anything in the Uk. I do think that count feint is wrong however the price does make it more affordable and appealing. Even if it doesn’t last as long as the real thing.

58.

Some real items are extremely overpriced and not accessible to people on the average income, aslong as it looks good it doesn’t bother me if it’s fake, obviously if I could afford the real deal then thats a bonus!

59.

Cheap but probably really bad quality.

60.

I worry about the safety as corners have clearly been cut to make it cheaper at least with a genuine product you are covered by guarantees etc. I would never buy anything counterfeit for that reason.

61.

As long as they look like the real product I don’t see the problem

62.

Cheap and not the same !

63.

Cheap and easy to buy which allows you to keep up with trends at an affordable price, although the quality of the products is usually to a bad standard.

64.

I would never buy counterfeit electronic devices or jewellery but I would buy shoes, bags or even clothing as to me there would be no blip in the making or creating of the product however I would be pretty shaky buying for an example a counterfeit iphone or computer as I would not trust the product to work properly

65.

I don’t see anything wrong If the product is cheap and of good quality.

66.

Counterfeit products can be a cheap and easy way to purchase an item that is in style at the moment but probably not for long, therefore you can’t justify paying hundreds of pounds for something you wouldn’t wear/use in 12 months time. I wouldn’t purchase a counterfeit item again as I have done in the past and the quality doesn’t compare to a luxury item, also you don’t get the same rush or feelings of happiness that you may get when pur chasing a luxury item that you really like.

67.

Its alright, don’t see it harming anyone.

68.

For now it doesn’t bother me but when I’m older I would prefer to save up and buy a real designer bag or purse etc.

69.

I think its deceiving, I paid a lot of money for a bag I thought was real of ebay and it looked very much like the real thing but my husband told me it was fake I was so upset and angry!

70.

Unfair on designers. Would rather save and get the real item. Not worth paying less for poor quality

71.

If the product was of high quality and good pricing I wouldn’t mind.

72.

I’ve bought them and would still buy them because i think a lot of products are overpriced and I don’t see the point in paying out so much money for things that are going to go out of fashion a few months later

73.

Its insulting to people who can afford the real item, it should be stopped!

74.

I wouldn’t wear most counterfeit goods, but there has been cases in the past where I have bought and worn them, just because of the price and because the product was so similar in appearance to the real deal!

75.

People with different lifestyles can only afford counterfeit products. So if people can only afford them

76.

A purchase would depend on the quality and type of product.

77.

Depending what it is it sometimes makes more sense to buy fake

78.

I would never buy one I would rather save for some time and get something authentic

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79.

It’s not a special as the real thing you have worked hard to pay for. I don’t agree with it!

80.

I’ve bought a few fake items (clothing /purses) and they do the same job as the real however if i could afford the real thing then i would prefer that

81.

I’ve never bought a counterfeit but i don’t think it is such a bad thing and would buy a copy simply because of the price and because trends change so quick so i don’t see the point in buying full price

82.

I really don’t like the fact people copy products or buy fakes its misleading

83.

If you want a unique unusual look, I love be different

84.

I did by a secondhand Ted Baker bag once that I think may have been counterfeit but was assured by the seller was real!

85.

Some are as good as the real thing but a lot cheaper!

86.

I think they are a good way for keeping up with short term trends if you haven’t got the budget for the real products, and the majority have a good lasting quality although sometimes when I buy imitations of handbags etc I do worry people will judge me

87. Ok 88.

I just think it is an insult to the fashion industry and devalues a brand

89.

I think they are in some respects bad for the business of the original brands, yet at the same time if there products have had enough influence amongst the fashion industry that there is a need or want for there products then it shows they are influential and still relevant.

90.

Not as good quality as the real thing but sometimes better than nothing

91.

If they’re done well then I don’t see the problem. A replica can be an affordable alternative to the real thing.

92.

I think most of the time it is obvious they are not genuine coz of the quality. I own a few real designer products, and I can’t see that counterfeit products would create the same feeling that actual designer stuff creates. Instead, I could imagine feeling a bit ashamed, not wanting people to look and question the product, I would constantly feel conscious. Totally the opposite from when I’ve bought genuine products in the past.

93.

It’s an easy way of buying something designer that you can’t nessecsrily afford.

94.

They are ok for short term trends however do not have the same feel as the real thing with regards to how you feel about that purchase and how much your value and repect it.

95.

I buy them because i am a student and don’t have the money to pay for the real deal

96.

I think there ok

97.

I think its wrong and would rather pay extra for the really product

98.

I do believe counterfeiting is wrong but if i like a item and i can’t afford I would still buy a fake 99.

They give those less fortunate the opportunity to buy products they feel makes them look expensive however it is an insult to those who have worked hard to produce the original

100.

Good for people who can’t afford can pretend

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9.4 appendix d - Hofstede model

What about China?

If we explore the Chinese culture through the lens of the 6-D Model, we can get a good overview of the deep drivers of Chinese culture relative to other world cultures.

Power distance This dimension deals with the fact that all individuals in societies are not equal – it expresses the attitude of the culture towards these inequalities amongst us. Power distance is defined as the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally.

At 74 China sits in the higher rankings of PDI – i.e. a society that believes that inequalities amongst people are acceptable. The subordinate-superior relationship tends to be polarized and there is no defense against power abuse by superiors. Individuals are influenced by formal authority and sanctions and are in general optimistic about people’s capacity for leadership and initiative. People should not have aspirations beyond their rank.

Individualism The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members. It has to do with whether people´s self-image is defined in terms of “I” or “We”. In Individualist societies people are supposed to look after themselves and their direct family only. In Collectivist societies people belong to ‘in groups’ that take care of them in exchange for loyalty.

At a score of 16 China is a highly collectivist culture where people act in the interests of the group and not necessarily of themselves. In-group considerations affect hiring and promotions with closer in-groups (such as family) are getting preferential treatment. Employee commitment to the organization (but not necessarily to the people in the organization) is low. Whereas relationships with colleagues are cooperative for in-groups they are cold or even hostile to outgroups. Personal relationships prevail over task and company.

Masculinity A high score (masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner / best in field – a value system that starts in school and continues throughout organisational behaviour.

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A low score (feminine) on the dimension means that the dominant values in society are caring for others and quality of life. A feminine society is one where quality of life is the sign of success and standing out from the crowd is not admirable. The fundamental issue here is what motivates people, wanting to be the best (masculine) or liking what you do (feminine).

At 68 China is a masculine society –success oriented and driven. The need to ensure success can be exemplified by the fact that many Chinese will sacrifice family and leisure priorities to work. Service people (such as hairdressers) will provide services until very late at night. Leisure time is not so important. The migrated farmer workers will leave their families behind in faraway places in order to obtain better work and pay in the cities. Another example is that Chinese students care very much about their exam scores and ranking as this is the main criteria to achieve success or not.

Uncertainty avoidance The dimension Uncertainty Avoidance has to do with the way that a society deals with the fact that the future can never be known: should we try to control the future or just let it happen? This ambiguity brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways.

The extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these is reflected in the UAI score.

At 21 China has a low score on uncertainty avoidance. Truth may be relative though in the immediate social circles there is concern for Truth with a capital T and rules (but not necessarily laws) abound. None the less, adherence to laws and rules may be flexible to suit the actual situation and pragmatism is a fact of life. The Chinese are comfortable with ambiguity; the Chinese language is full of ambiguous meanings that can be difficult for Western people to follow. Chinese are adaptable and entrepreneurial. At the time of writing the majority (70% -80%) of Chinese businesses tend to be small to medium sized and family owned.

Pragmatism This dimension describes how people in the past as well as today relate to the fact that so much that happens around us cannot be explained. In societies with a normative orientation, most people have a strong desire to explain as much as possible. In societies with a pragmatic orientation most people don’t have a need to explain everything, as they believe that it is impossible to understand fully the complexity of life. The challenge is not to know the truth but to live a virtuous life.

China scores 100 in this dimension, which means that it is a very pragmatic culture. In societies with a pragmatic orientation, people believe that truth depends very much on situation, context and time.

They show an ability to adapt traditions easily to changed conditions, a strong propensity to save and invest, thriftiness, and perseverance in achieving results.

Indulgence One challenge that confronts humanity, now and in the past, is the degree to which little children are socialized. Without socialization we do not become “human”. This dimension is defined as the extent to which people try to control their desires and impulses, based on the way they were raised. Relatively weak control is called “indulgence” and relatively strong control is called “restraint”. Cultures can, therefore, be described as indulgent or restrained.

China is a restrained society as can be seen in its low score of 24 in this dimension. Societies with a low score in this dimension have a tendency to cynicism and pessimism. Also, in contrast to indulgent societies, restrained societies do not put much emphasis on leisure time and control the gratification of their desires. People with this orientation have the perception that their actions are restrained by social norms and feel that indulging themselves is somewhat wrong

INFORMATION FOUND AT : Geert-hofstede. (n.d.). China - geert hofstede. Retrieved from: http://geert-hofstede.com/china.html.

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