Fake luxury consumer products will get double by 2015 in India: Report

In an unprecedented case, sale of ‘fake’ and ‘artificial’ luxury good may see an upsurge to 5,600 crore by 2015, as consumers are finding it easy to order luxury good through online shopping retailers.

According to a report by Associated Chambers of Commerce and Industry of India (Assocham), sale of fake luxury products such as handbags, watches, sunglasses and perfumes are in high demand than in the genuine luxury products. Currently, the sale of fake products are growing at 40-45% from the current Rs.2,500 crore.

The report also suggests that globally the fake luxury products market comprises about 7% of the total luxury market having value of more than $22 billion of the global luxury industry valued $320 billion. However, fake luxury products in India accounts about 5%of total luxury product.

Interestingly, the report shows that good from Chinese market, which is believed to be source of fake luxury goods, have flooded in the Indian market. Lack of transparency on line market and easy access to products is driving consumers to buy fake products online. 

“Over 80% of the entire imitation luxury products in India come from China,” D S Rawat, Secretary General of Assocham told media.

Report further states consumers who are unable to buy original products they deliberately buy fake products as global websites delivering fake products courier them products once they receive payments. Most of these websites have their domain names which are usually not registered under Indian jurisdiction. 

“Demand for fakes is a manifestation that aspiration of a product does not meet affordability of the same. It’s not driven by a certain set of consumers who lack affordability but even those who can afford the original opt for fakes owing to desirability and awareness reflective of a value-conscious shopping behavior,” adds Senior Vice President Ankur Bisen of retail and consumer products Technopark Advisors Pvt.