COUNTERFEITING IN THAILAND - THE NIKE CASE AND THE WORLD CUPJERSEY 2018...

The price of the Nike jersey compared to the cost of production in Thailand is debatable.

Beyond this specific case (which we will discuss), let us talk more generally about counterfeiting.

 

 

Counterfeiting is present in Thailand, it is not a scoop, as it is in all Asian countries.

 

Before having a clear opinion on the matter, and all the opinions are audible, let us see what are the main causes of the presence of these counterfeits.

 

1) The presence in Asian countries of the main factories that manufacture the products for the major brands

 

Indeed it is understandable that where the branded goods are produced there are counterfeit products in circulation.

 

You have to be careful when you talk about counterfeiting because in fact there are two types of products that are not allowed for sale. Firstly the "overproduction" which concerns real products but manufactured without the authorisation of the brand. It is the factories that sell these products in a parallel market that is still called the "grey market".

 

Then there is the real counterfeit that concerns products imitated with low-end materials. These are the products found in Asia on the local markets and in Europe on the beaches or with the sellers at the sly.

Note that these products are also widely sold on internet.

 

2) Local salaries often very low

 

This point is undeniable and most outrageous in regard to this subject of counterfeiting.

 

We know how much the brand products cost and when we see that the average wage of a worker in Thailand is 180 euros (and even less in some other producing countries) one can only be indignant.

 

The workers are often very skilled people with their hands and have a great experience. As a result, they are often highly solicited by factories or parallel manufacturing workshops to work on manufacturing counterfeiting outside of their working hours (in a workshop or at home).

 

It is normal to think that these people need to improve their income and sometimes this parallel work gives them much higher incomes than their legitimate work, especially if they are highly skilled workers.

 

3) The behaviour of brands that place profit and only profit at the centre of their concerns.

 

This is not new but in any case it is a reality that no one will dispute.

 

The factories are squeezed like lemons by the brands to lower their prices and this without of course touching the quality of the materials used that are chosen by the brands. The only solution is to play on production rates and wages.

 

The brands defend themselves by saying that it is necessary to add transport and customs fees. This argument is fallacious because it is only a very small part of the final cost.

By not taking into account the economic realities of the producing countries and especially its low-paid employees the brands are actually shooting a bullet in the foot and this for several reasons.

 

First of all it forces them to set up an on-site surveillance system with expatriate executives and frequent trips to different factories. This costs very much and impacts the final cost quite heavily.

 

Then they strongly encourage counterfeiting because their products, overly expensive compared to the cost of production are sought and the brands play on a well orchestrated imbalance between supply and demand.

We also need to know that, and contrary to what we could see a few years ago, the consumer is now no longer as looking at the fact that the product is a fake or not.

When one gives as argument that the Polo or the jersey at €150 will last 10 years the consumer does not care because he became a mass consumer and prefer today to buy much cheaper and often change (apart for the brands of very high luxury or the especiaily such as the World Cup 2018).

 

Finally, do not take the workers of these factories for fools. Today everyone has a smartphone, internet and television and they know very well how much are sold in the west the products they manufacture for a few dollars which, in their view, suffices to justify the counterfeiting by the fact that they consider that the part of the cake is uneven and that basically it is only fair to grant a part of it, by illegal means but no matter.

 

The Nike case and the World Cup jersey 2018

 

It is a case of school if you can say and I know well since the factory that produces them is near my home.

This jersey costs only 3 euros for manufacturing (including transport and customs costs) and is sold 140 euros in France which means a ratio of 1 to 47.

The price of the jersey is thus close to the monthly salary of the Thai worker.

How can one explain such a differential if not by a purely profit-oriented reflection.

Certainly the communication is expensive, and at this level the over-bidding between the brands is exponential to the point that the cost of communication has long exceeded the cost of production which is in my opinion a total nonsense, the brands having become Communication agencies and athletes under contract sandwich men who do not ask too many questions and cash the fruit of their notoriety without thinking, especially when they are political stooges, high-level sport having largely surpassed the purely sporting sphere.

 

The brands will tell you that their margin is low because most of it is absorbed by the distribution circuit. Certainly it is true but it is because one is in an economic model that has totally skidded over the decades. The distribution itself is done through mastodons little smaller than the brands themselves for some, and communication and its costs is thus continually multiplied exponentially.

 

This being said, what risk do you have if you bring counterfeit products back to France when you return from your trip to Thailand ?

You risk a lot... First of all you will be confiscated the products. That said it is not very serious because they are cheap but above all you risk a very strong fine.

Many people, in view of the very low price of the products and the relative quality of some of them are attracted and bring back much, for them but also for the family and friends which greatly increases the risk.
Getting caught with one or two T-shirts can be tolerated, with 15, 20 or more it becomes traffic... and there the addition is salty…

If you bring back one or two items do not keep them in their packaging but mix them with your other effects, you can always say that you bought them in France.

It is better to buy counterfeit products in the country in which one resides and not to pass customs with, it is an absolute truth.

With regard to counterfeiting in general, the question remains in its entirety as to its legitimacy. From a purely legal point of view of course we know the answer but from a moral point of view the answer is not so simple and ultimately is it not a form of resistance in the face of increasing inequalities and ultimately detrimental to all, except the brands and the large distributors.... But should we sacrifice the general and universal normality on the altar of profit of brands and distributors? 

When we see on the label Lacoste above that counterfeiting is a real scourge, I think it would be appropriate to ask the question of where is and what is the real scourge…

The debate is open, express yourself!