Thursday, February 5, 2009

Buying a Fake - Who is to Blame?

here was an interesting program on the subject on a Call-in Radio in Dubai today. Defender of the brand was of the view that buying fakes by the consumers can lead to the extinction of exclusive brands like Louis Vuitton (LV) resulting in job losses etc. Defender(s) of the consumer action insisted that if these exclusive Brands were to rationalize their prices, there would no incentive for consumer to buy the fakes and there would be no production of the fakes ultimately. The counter argument by the Brand defender was "then such Brand would lose its exclusivity, if every one could afford it"....

In my opinion.... Exclusive Brand ceases to be exclusive when it is produced and marketed around the world. If it is being produced in 20 factories around the world along with One Original factory, that gave it its brand identity and exclusivity, it already is mass produced. They should charge different prices then I.e., that of a highly recognized mass produced brand... Like coke or pepsi.... and not that of an Exclusive Brand!

The only incentive to produce in Cheaper destinations is to cut cost. Now if the cost reduction is to fatten Brand's margins and the benefits are not to pass on to consumer, there is a trace of unscrupulous behavior on part of the Brand. Isn't consumer then justified to cut his cost???

What do you think?

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