Citation
(2015), "Executive summary of “Devil continues to wear ‘counterfeit’ Prada: a tale of two cities”", Journal of Consumer Marketing, Vol. 32 No. 3. https://doi.org/10.1108/JCM-05-2015-031
Publisher
:Emerald Group Publishing Limited
Executive summary of “Devil continues to wear ‘counterfeit’ Prada: a tale of two cities”
Article Type: Executive summary and implications for managers and executives From: Journal of Consumer Marketing, Volume 32, Issue 3
This summary has been provided to allow managers and executives a rapid appreciation of the content of the article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefit of the material present.
The problem of counterfeiting has grown to a degree that fake products account for a significant percentage of global trade. It is rampant within numerous product categories and is of a huge concern to manufacturers and brand managers alike. Loss of corporate revenues negatively affects economic growth, ensuring that the issue is also salient at the government level.
Recent years have seen that counterfeiting become a major worry for luxury brands. Consumption of such brands has proliferated, and availability of forged imitations has risen accordingly. Commentators note the ease in which luxury brands can be copied cheaply and sold for a sizeable profit.
Demand for counterfeit luxury brands is considerable both in Taiwan and Mainland China. The market is especially lucrative in Taiwan, where Chinese consumers see counterfeits as a viable means of embracing the latest fashions and trends. A similar picture is emerging among consumers in Mainland China. Status is highly valued there, and consumption is seen as a way to increase “face”.
Foreign organizations have become hesitant about entering the Chinese market due to the counterfeiting problem. Research indicates that China is responsible for the biggest supply of counterfeit items. Poor morality and the absence of regulations and penalties are cited as reasons why counterfeiting has become a considerable problem in developing nations. Original brands are swiftly targeted, and protecting brand equity often involves high legal costs. Globally, however, various bodies have emerged to address the increased threat posed by the growth in counterfeiting across the past three decades.
Response to counterfeits by consumers from Mainland China has been the topic of much research attention. Corresponding studies into the attitudes and behaviors of their counterparts in Taiwan are much scarcer. This is despite the probability that these consumers will be more familiar with luxury brands. In addition, Taiwanese consumers are proposed to have adopted a more westernized approach toward their consumption. Phau et al. consequently believe that greater understanding of the respective attitudes and behavioral intentions of “China Chinese” and “Taiwan Chinese” consumers is needed. They note the potential variations among Chinese consumers in different regions and acknowledge that China’s identity is still evolving in the wake of the rapid economic development the country has experienced in recent times.
The present study focuses on people who intentionally seek to purchase counterfeit luxury goods. This would usually entail preference for renowned brand names that convey meaning to the consumer. Some studies have found that preference for counterfeits is driven by the opportunity to obtain products which offer similar visual and functional attributes of the genuine brand. But paying less usually means a lower expectation of quality. Technological advancements have narrowed the quality gap in some cases, and motivation to buy counterfeits has increased further. Price is widely seen to be a key motivator for those willing to purchase fake luxury-branded items.
Informed opinion of significant others influences the purchase decision making of many consumers. This tendency rises when consumer knowledge of the product category in question is low. Where counterfeits are concerned, the fear of such others being able to readily differentiate between originals and fakes might deter them from seeking out the counterfeit.
Collectivism has previously been strongly linked to counterfeiting in China. However, others point out the variation in collectivistic culture in different regions of the country. Foreign influences are also thought to have increased individualistic propensities among consumers.
Many investigations confirm that personality traits influence buying behavior. It is thus believed that various characteristics shape the attitude of Taiwan Chinese consumers toward luxury brand counterfeits. These include:
Integrity: When importance is attached to this virtue, counterfeits appeal less. But it can change if buying fake products is not viewed as particularly unethical.
Personal gratification: This reflects the need for feelings of accomplishment, being socially acknowledged and a yearning for the “finer things in life”. Appearance and quality of fashion products are likely to be important for people placing value on personal gratification. The genuine luxury product is thus expected to appeal considerably more than counterfeit versions.
Status consumption: Luxury items play a major part in the quest to gain status and indicate this to others. Overt consumption of luxury brands helps people achieve status goals. Using counterfeits jeopardizes status, especially given the significance attached to “face” in Chinese culture.
Attitude toward counterfeiting is likewise believed to be a key indicator of whether someone will ultimately purchase fake luxury goods. The premise of one theoretical approach is that attitude shapes intention which in turn influences actual behavior.
Key issues are explored by the authors via surveys of consumers in shopping centers in Taipei, Taiwan and Shanghai, China. Respondents completed a self-administered questionnaire, and usable samples of 301 and 202 were respectively obtained. In addition to answering questions regarding attitudes, perceptions and purchase intention regarding counterfeits, demographic details were provided.
Analysis indicated that attitudes toward counterfeit luxury brands are negatively influenced by:
Integrity in both samples.
Personal gratification for the Taiwan sample but no impact on the China sample.
Status consumption in both samples.
Evidence showed that collectivism had a positive impact on China Chinese consumers but was not significant for their counterparts in Taiwan. As predicted, it was also found that attitude had a strong positive impact on purchase intention for both sets of respondents. But contrary to expectation, the two samples indicated that the effect of expert opinion of others (information susceptibility) was insignificant.
This study illustrates that attitudes toward counterfeits can vary even between countries which are both geographically and culturally close. Phau et al. therefore point out the need for targeted strategies to address counterfeiting. Influencing attitudes toward counterfeits is seen as a logical starting point and one that should highlight the symbolic superiority of original brands. That information susceptibility is insignificant is seen to highlight the lack of awareness which surrounds the counterfeit issue. This illustrates the need for both industry and government initiatives to better inform consumers. Where collectivist values prevail, it is suggested that brand managers should emphasize the potential risks and damaging consequences inherent in purchasing bogus products. Such an approach can also help devalue the perceived benefits involved.
The authors likewise urge stronger focus on the ethical aspect of purchasing counterfeits. An emphasis on the damage to personal integrity and negative social consequences is recommended. In this respect, it helps when firms associated with luxury brands are socially responsible and boast a positive brand image. Where personal gratification is concerned, brand managers should continue to stress the divide between genuine products and fakes with regard to quality such as uniqueness and the craftsmanship involved. The finding that many consumers perceive counterfeit luxury goods as a means to demonstrate status is a worry for brand managers. Some authors note that wealthier consumers are attracted toward counterfeits and see them as a “stepping stone” toward obtaining the original product. Phau et al. suggest that such consumers should be identified and segmented.
Future study should consider different socio-economic groups, neighboring populations like Hong Kong and product categories. The impact of materialism and face on Chinese consumers could be further considered alongside variables like guilt and shame. Another possibility is examining actual ownership of counterfeits rather than purchase intention.
To read the full article enter 10.1108/JCM-03-2014-0908 into your search engine.
(A précis of the article “Devil continues to wear ‘counterfeit’ Prada: a tale of two cities”. Supplied by Marketing Consultants for Emerald.)