Consumers’ Attitude toward Purchasing Counterfeit Luxury Fashion Item

Chapter Four: Discussion Part

4.1 Case Description

The United Kingdom’s fashion industry is mainly dominated by private companies. The private sector has dominated the market based on its ability to mitigate threats in the industry and meet the ever-changing needs and preferences of the consumers. Even though the public sector owns a small set of the market this is because of the fact that the government offers subsidies to all good to make them accessible to low-income individuals. However, the competing private sector operates rather differently and it is estimated that it occupies close to 80 percent of the market (Bhatia, 2018). In that, the private sector within the fashion industry is that it is the main provider of fashion goods and also account for the largest sale and profits annually for the last few decades. The dominance of the private market, therefore, illustrates its competitiveness in the market as a whole. The public sector has mainly failed to lead in the market due to the lack of independence and the government has been seeking to increase its economic development through infrastructural development. The unequal resources distribution has resulted in the low competitiveness of the public fashion sector. The United Kingdom’s fashion industry is estimated to be worth approximately 26 billion Euros offering jobs to about a million people which shows that it is a major economic contributor (Bhatia, 2018). Clothing is one of the largest business in terms of revenue generation in the United Kingdom. The domination of the private sector has changed the entire condition of the market given that the investors are more focused on the generation of more profits and there have been numerous encounters of corruption and misconducts in the fashion industry. Based on a study by Frerichs (2008) it was established that close to 65 percent of the fashion products are counterfeits and the provision of quality and legit fashion products is rarely provided to consumers. Thus, these are some of the cases that best illustrate the state of the market where consumers voluntarily or unknowingly buyers counterfeits products in form of leading brands.

Even though the UK is among some of the leading countries in terms of economic growth, a notable portion of the nation’s population has no ability to afford genuine luxury fashion products (Eisend, 2016). In that, the cost of living in the country is particularly high and individuals are mainly focused on the ability to take care of their basic financial needs. In that, the priorities lie in things such as education, healthcare, food, and housing as a whole (Chen, Teng, Liu and Zhu, 2015). In this context, it is apparent that purchasing fashion goods is usually not a priority in such a situation. Thus, in order for the fashion investors to attract a significant share of the market, they are therefore they need to produce affordable products. The aspect is not easy since fashion changes rather fast which affects the demands and preferences of the consumers as a whole which makes it rather expensive for the investors to make the production so rapidly. Agarwal and Panwar (2016) noted that counterfeit products have become one of the major solutions to the increasing demand in the market given that consumers are in need of affordable products that meet their growing needs. The counterfeit sales account for the largest market share in the industry currently given that it is able to meet the expectation of the consumers.

4.1.1 The UK Luxury Fashion Industry

The United Kingdom’s fashion market has existed since civilization as one of the fastest growing economies globally. Fashion was more prevalent in the past in urban areas due to the availability of products and purchasing stores. Based on a test by Toklu and Baran (2017) it was established that the feasibility of the fashion industry has been changing over time. Technological development and prevalence of globalization have made the industry even more important. As whole consumers are easily able to acquire information from the internet about fashion which shapes their perception, values, interests, lifestyle, and personality (Eisend, Hartmann and Apaolaza, 2017). The advancement of technology and globalization have also changed individual’s social perception. Fashion-wise the need to fit in is a bit high and individuals have to compete with fashion. The aspect mainly affects young individual because they need to ensure that they are able to get all the needed fashion. The UK’s fashion market has grown rapidly and it currently offers a range of services ranging from manufacturing, retailing and marketing of these fashion products (Al-Debei, Akroush, and Ashouri, 2015). Even though the counterfeit market has been increasing highly over the last few years, it is rather evident that minimal investigation has been conducted to understand the scope of the market. Being one of the largest economic contributors the fashion industry needs to be treated as a priority which will, in turn, increase the level of sales, profitability and economic development (Bian and Veloutsou, 2017). There are a number of motivators for the growth of the counterfeit products such as increased demand and rapid preferences changes on fashion products. However, the quality aspect has been compromised in general by focusing on affordable products and increased profits among private investors.

4.2 Results and Discussion

This section offers an in-depth description of the study’s findings. This will be useful in highlighting the existing research gap and future research. The findings have identified various themes with reference to the counterfeit fashion products and the consumer’s attitudes towards such purchases. Based on the above analysis the following themes emerged from the analysis include deceived counterfeits, counterfeit products, affordability and fashion values, modernization, globalization and the role that such attitudes play with regard to determining the perception towards such products.

Counterfeit fashion goods have been a pressing issue over the last few years. In that due to the increased demand for fashion products. The growing business of selling counterfeit products is not a new issue because it has been steady for the last few years despite the fact that it costs money to the taxpayers. Currently, the issue is not getting lower but since the commencement of the 21st century the availability of counterfeits goods has increased almost three times (Ha, and Tam, 2015). The counterfeit goods industry is a severe issue in the modern society based on an investigation from various studies. Since the issue is intensifying more and more research is coming up that is likely to change the future of the industry completely. The increased availability of products across the globe people is making more purchases for the products. Most individual assert that they can clearly tell the difference amid counterfeit and legit fashion and designer goods in the market. However, even though individual understand that what they buy are not legit they continuously take the fake purchases only because they are affordable. Affordability as a value has destructed the quality aspect given that cheaper goods adhere less to qualify. The demands of the modern society demand that people should fit in, with reference to fashion. Therefore, people buy counterfeit goods that represent a certain status without having to think whether it is appropriate or not. Most of the people that were surveyed during the study felt that even though they are well aware that the goods they are acquiring are fake they prefer to buy them because they are pocket-friendly. The difference amid the products is that one is associated with quality but the price is high which makes them unfavorable. Expensive products are not favorable today for most people are not desirable because of the high living cost and the fact that the fashion trends change so often thus requiring rapid and increased purchasing habits. When the products are expensive it means that individuals will purchase lesser products which drag their fashion needs low.

Source: Dissertation Home (2016)

Even though consumers can easily access information about the products and trendy fashion, it is rather unappealing that there is little awareness of the subject. According to Herstein, Drori, Berger, and Barnes, (2015) providing education to consumers on the distinction amid original and fake goods which is a practical approach that is useful in shaping individuals perception. Education is all about the creation of awareness and familiarity to let the consumers understand the state of the market. Education should represent the basic step that will assist consumers in assessing quality, fabrics, price and all the associated details to that product. Education is important in enhancing knowledge among individuals which helps in shaping their psychological composition. However, based on the findings of the study it is rather accurate to note that the fact that people purchase products knowingly means that they understand everything about the products.

The study also found out that traveling encounters and globalization have positively played part in the development of the counterfeit market. In that, an individual who rarely travels might not have had the experience of seeing counterfeits in the market and will only buy the genuine ones even though they are expensive. However, those that have traveled clearly understand that the activities are taking place across the globe which makes them legal and increases their willingness to embrace the trend as something that is acceptable within the social and business landscape (Jain, Khan and Mishra, 2017). However, counterfeit goods are very prevalent in major cities which means that the product is easily accessible within the urban areas. In that fashion is more viral in the urbanized regions which makes them favorable for such products. The products are provided in large scales since the investors understand that the market is large enough to accommodate the products. The situation is different in the rural regions given that the market is not as high and the entrepreneurs are not willing to provide the products in a large scale as the market is risky. The risk is developed from the fact that fashion trends change rather fast thus requiring the investors to provide more new products as they get into the market. Thus they only tend to provide the products in the markets that move rather fast in terms of sales which will meet the profitability need and allow them to bring in fresh stock.

Age and past shopping experiences have the likelihood of playing a major role in developing a rather positive attitude towards counterfeits fashion products. Young individuals including both male and females desire to be like individuals they see on social media, television, and media as a whole and this motivates them to acquire the counterfeits goods to ensure that they looked well. Most young individuals particularly students do not have much to spend on genuine products to create the looks that resemble those of celebrities and therefore they go for affordable products that are not original while the quality is nothing that they adhere to. Students are the most affected by the issue of purchasing counterfeits goods (Phau, Teah and Chuah, 2015). Half of the respondents noted during the interviews that they first purchased counterfeit goods several times without actually knowing the actual truth but after the realization, they realized that they are the best option for the real brands. Young people are mainly interested in purchasing products that are connected to the leading brands such as Gucci, Versace and so on. The prices of these brands are very high meaning that those that can afford them are few and most individuals must acquire counterfeit to fit socially (Kim and Karpova, 2010). It is rather challenging to understand why individual purchase things even when they clearly understand that they are not durable or of any quality but most hold that those selling counterfeits are very convincing which in most cases leads them to ignore their values with reference to quality. Some of the respondents admitted that the experience is mainly driven by peer pressure where their peers pressure them to get into such experiences on the ground that they save money and lift their social status. The trigger of doing something that is unlawful appears to be fascinating enough for young individuals to play part in the purchasing of counterfeits. People normally face ethical choices on daily basis particularly when conducting transactions but older shoppers who are socially responsible normally think more carefully about the effects of buying counterfeits. Since peers approve of these counterfeits the shoppers will not get any pressure of changing their shopping habits. Even though ethically this shoppers understand that the products they are buying are not genuine but since there are no consequences for such action it means that their decisions are relevant. In other words, these are people who never conduct research regarding a product and never get to understand the existing issues in the fashion industry.

Source: Dissertation Home (2016)

In this context, young individuals which entails university students as the major consumers of counterfeit fashion products needs to be educated more. The concept is backed up by the assertion by Toklu and Baran (2017) that young individuals understand that counterfeits merchandise is unlawful given that it plays part in hurting the economy but believe that buying counterfeits products such as clothing, shoes, bags, and accessories is moral given that it does not harm them in any given way. The study, therefore, asserts that contrary to what most individuals believe counterfeits does not generally involve using the name of another brand but all the details of the products are counterfeits. In that, in most cases when a brand is counterfeited, it means that the materials used in the production are also counterfeit which means that the products are not of high quality. Any product that illegally uses another company’s brand name and generates revenue from it thus means that they are counterfeits which is not right. This means that in the case of counterfeits the revenue that is generated does not go to the original brand even though the products are affordable (Young. and Johnson, 2006). Thus using the efforts of another company is not ethical but consumers care less with regard.

Counterfeiting is an extensive business which is two-sided as there is there are the suppliers and consumers demanding for the products. Consumer’s demands for the products is the main driver for the continuity of the business. Consumer reaction to the continuity of the trend is essential given that it affects both of the involved sides. In that, the suppliers have to strive to ensure that they provide products that meet the demands of the consumers. On the other hand, consumers require the products to fulfil their social demands for upgrading their status. The study mainly investigated with regard to how consumers perceive their purchasing habits for luxury counterfeits fashion and whether their willingness to the buying is triggered or their personal desire (Wang, 2014). All the participants that were involved in the study are the young persons who are fashion mindful, perceived attitude, threat, and willingness. Thus, this research investigation established that being conscious of the products one is buying is one of the leading priorities when selecting fashion brands in the market. In most of the purchases, there is no any form of deception that is used by the suppliers given that they tend to utilize established brands name to attract consumers. Despite the fact that counterfeiting the brands is wrong the consumers are well aware of the situation but are willing to purchase the goods without being pushed. Some of the forces that pressures individuals to purchase the products are the fact that they approve of their existence.

Source: BBC News (2016)

An additional finding is that the supposed value that the consumers attach to the products has a positive contribution on perception towards counterfeit and willingness to buy counterfeited luxury fashion products. The findings of this study align constantly with the existing literature. It was established that consumers mainly attach the price value towards the counterfeits goods. The products are cheaper compared to the genuine ones and the value of pricing creates more opportunities for the consumers to be able to purchase other products. In other words, there are several advantages or value that is attached to counterfeit goods (Teah, Phau and Huang, 2015). There is no any form of perceived threats towards the existence of the products because they do not cause any form of harm to the consumers as they allow them to save more while still ensuring that the interest of the suppliers to maximize their profit gain is upheld. This matches with the literature on the ground that customers currently chase products that offer certain values particularly those that are affordable. The changing nature of fashion has pressured individuals to opt for affordability over quality to increase their relevance in regard to fashion. This findings partially disagrees with the existing literature on the ground that quality and affordability are the values that the consumers are seeking to achieve. This is rather incorrect based on this study which found out that consumers only require the products that meet their needs and affordability value.

On the other hand, ethical consciousness was found to be having a negative implication on the perception and readiness to buy counterfeit fashion luxury products. The results align well with the existing literature. The findings are important particularly for marketing the existing brands in the right manner while ensuring that they deter the willingness to purchase new products. Consumers are always unwilling to purchase products that they are fully aware that are not genuine and are likely to cause some negative implications on them or socio-economically. If the markets inform the consumers that buying counterfeits is unethical they are likely to reduce their purchasing power for the products. Such cautions allow the consumers to review the products even in the case that the sellers are very convincing about the quality or affordability value that such products provide. However based on a study by Wilcox, Kim, and Sen (2009) consumer purchasing choices do not necessarily adhere to a certain pattern when it comes to buying counterfeits thus such perception and attitudes can be altered through the provision of education as a form of awareness creation. However, to discourage such purchases then the consumers should be informed of the advanced effects of the products. This means that the awareness should focus on educating the buyers that buying counterfeits is unlawful and every party that is involved is might face potential legal threats. Even though these counterfeits are affordable the willingness to buy them, therefore, works to facilitate the continuity of the business which then hurts the economy. In that consumers should only focus on the quality features and originality of the brand rather than the price value which demeans them as well.

Although variety of goods are counterfeited, buyers deliberately get engaged in getting branded goods and luxurious items. In that successful brands have the highest ability of attracting counterfeited goods since consumers want to be associated with the products. There are a number of trends behind the counterfeits of the established brands. To begin with, the rapid growth of technology makes it easier for the productions. In addition the general demand for the counterfeited goods is extremely high since individuals seek to fit within high status quos and the interest to be associated with trendiness and style (Ha and Tam, 2015). These reasons therefore makes the consumers to opt for financial value as the most convenient option over the genuine luxury items. In fact there are two different practices that are major influences in the counterfeit business. In that the suppliers have their values while the consumers benefit financially.  While supplying counterfeits has become very fascinating given that recent literature is now focusing on examining the issue in-depth which was rare in the past.

Source: CNN Money (2016)

This study has therefore demonstrated that the difference in pricing amid genuine and counterfeit goods is high which mainly drives the buyer’s willingness to purchase them. The study noted that one third of all the fashion consumers normally acquire these products deliberately. This is not only triggered by the price value given that the pressure is mainly originating from the social context. The main justification for such purchases is that it bring about more value by ensuring that individuals fit well within the fashion context without much struggles. This therefore justifies there need for acquiring such products on often basis (Ha and Tam, 2015). In most cases the buyers normally legitimize this counterfeits by holding that the illegal goods holds lower margins when compared to the original ones. Such situations play part in enhancing the consumer’s perceptions and justifications for such activities. There are numerous forces that drives the attitude of the consumers towards most aspects such as moral. Economic and quality issues.

The economic situation that is currently present globally is one of the driving force. In that due to the existing economic strains consumers tend to tolerate such behaviors even though they are immoral. In this context purchasing counterfeits is linked to a positive perception for the counterfeits. Pricing is one that connects them to the economy because financially most individuals feel that since buying luxury products might affect their lifestyle acquiring the most affordable ones is the best option (Eisend, Hartmann and Apaolaza, 2017). The study established that it is the positive attitude that is connected to counterfeits that has led to the intense demand and supply of such products in the market globally. However despite the favorable prices it is not easy to predict their purchasing behaviors since those with high income or older consumers mainly choose to purchase genuine products. It is the positive attitude based on the perceived financial value of these products that influences their willingness to participate in the trade since luxury products are a necessity in the modern society. The findings aligns well with the existing literature in that counterfeits appears to be serving the same purpose as the genuine ones but are more preferred because they are priced lower.

In summary, the study found out that most consumers operate with the assumption that counterfeits have no risks as a whole. In that all that the consumers see when buying the products are benefit rather than any form of threat. For them there is no moral or legal violation that occurs when they purchase such goods because they do it out of will and the fact that the products are easily available in the market. With such supply this makes the accessibility easier and if there is any crime that is committed in the process then it is facilitated by the consumers rather than consumers. Based on the research it is evident that counterfeiting has become viral because of the domination of the private companies in the fashion industry. Here individuals tend to generate fake products mainly because the government normally offers subsidies to its own. The private ones have to struggle to balance their operating prices to create higher profit shares as a whole. Thus, their pricing tends to be a bit higher which then creates opportunities for counterfeiting. The main motivators for the positive perception towards these counterfeit is price rather than quality. Consumers are in search of affordable goods that fits within their financial budgets.

 

 

 

 

 

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