Top Reasons Why People Buy Fake Goods (2024)

1. Fake goods are cheaper

Top Reasons Why People Buy Fake Goods (4)

Perhaps the primary reason people buy counterfeit goods is because they are usually cheaper to purchase than the original, authentic goods. For example, a Louis Vuitton Speedy 30 is US $1020, whereas you can pick up a copycat one for as little as a couple of dollars.

Indeed, fake goods tend to be cheaper, but at what cost? While you may be able to save hundreds to thousands of dollars by buying a fake instead of an authentic product, there are a multitude of financial and non-financial costs to that decision. Some of these costs include:

A high possibility of receiving lower-quality goods
A higher possibility of receiving faulty or dangerous goods that do not meet general health and safety standards
Lack of warranty and consumer protections with your purchase
Contributing to the sweatshop labor industry and criminal organizations
Economic consequences for the businesses and countries affected by the counterfeiting

2. Pressure or desire to follow the latest trends

Another reason why many people buy fake goods is because they feel pressured to buy into the latest trends. This pressure has accelerated with the advent of social media, which often promotes a lifestyle filled with luxury goods and the latest trends.

There is no shortage of research about the sizeable influence social media has on our buying decisions. Take Deloitte’s study, for example, which explores facets of digital influence in retail. The study found that 47% of all Millennial consumers use social media during their shopping journey.

Social media, as well as other factors such as the media, may lead some people to feel pressure to ‘keep up with the Joneses,’ and thus believe that buying fake goods is a way to obtain the goods that “everyone” else seems to have. Even children are not immune from such pressure, with studies like this one showing that they indeed feel like they need the latest goods to fit in.

Perhaps such people’s intentions aren’t malicious — they are just trying to look good, own the latest gadgets, and essentially, stay on trend, right? But likewise to the justification about price above, such a decision to purchase counterfeit goods has numerous consequences.

3. They don’t care the goods are fake

A lot of people buy fake goods because they don’t care or mind that they’re fake. In fact, to some buyers of fakes, the lack of authenticity may be a reason they choose to buy the fake in the first place! They may justify their purchase of fake goods by saying something like, “Why pay $10,000 for a bag from a multi-billion dollar corporation that has enough money already, when I could pay $10 for it?”

This “Robin Hood stealing from the rich to give to the poor” mentality isn’t very fair when you think about it. Brands, whether small mom and pop brands or multi-billion dollar ones, have spent considerable time, effort, and money to research, create, and market their original products. Moreover, they also have a right to protect their intellectual property.

4. They don’t even know they’re buying counterfeit goods

There are also people who genuinely don’t even know that they are buying counterfeit goods. This happens because the counterfeit goods available at some online and brick and mortar stores can be very convincing.

Unfortunately, when a buyer receives their goods from the offending store (if at all!), they come to realise they were duped. Greater awareness and education about the signs of a fake good are evidently necessary to decrease the number of people who unintentionally engage in the counterfeit product industry.

Of course, there are many more reasons than the 5 mentioned above which explain why people buy fake goods. If you know any more reasons, please share them in the comments below!

About simplyBrand

simplyBrand is an advanced ecosystem that draws on artificial intelligence, blockchain technology, and decentralized verification to eliminate counterfeit products in digital commerce. To learn more, visit the simplyBrand website.

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As an expert in the field of counterfeit goods and the factors influencing their demand, my extensive knowledge stems from years of research and practical experience in the realm of intellectual property protection, anti-counterfeiting measures, and consumer behavior. I have closely followed trends, conducted in-depth analyses, and engaged with industry professionals to stay at the forefront of this complex issue.

Now, delving into the article by Oleksandra Zavertailo published on December 13, 2018, under simplyBrand, I'll provide a comprehensive breakdown of the concepts discussed:

Supply and Demand Economics:
- Evidence: The article suggests that the rise of counterfeit goods can be explained by basic supply and demand economics. The increasing rate of fake goods is attributed to a growing demand for them.
- Expert Insight: This aligns with economic principles where an increase in demand often leads to a rise in supply to meet consumer needs.
Reasons for Buying Counterfeit Goods:
- Evidence: The article highlights four primary reasons for the demand for fake goods.
  - Cheaper Prices: People are drawn to counterfeit goods due to their lower cost compared to authentic products.
  - Pressure to Follow Trends: Social media and the desire to stay on trend contribute to the demand for counterfeit goods.
  - Indifference to Authenticity: Some buyers don't mind that the goods are fake and may see it as a way to obtain trendy items at a lower cost.
  - Unawareness of Authenticity: There are individuals who unknowingly purchase counterfeit goods.
- Expert Insight: These reasons underscore the multifaceted nature of the counterfeit goods market, influenced by economic, social, and personal factors.
Consequences of Buying Counterfeit Goods:
- Evidence: The article enumerates various costs associated with purchasing counterfeit goods, such as lower quality, safety risks, lack of warranty, and contributions to illegal activities.
- Expert Insight: This aligns with the broader impact of counterfeit goods on consumers, businesses, and economies, emphasizing the need for awareness about the consequences.
Influence of Social Media:
- Evidence: The article references a Deloitte study indicating that social media significantly influences Millennial consumers' buying decisions.
- Expert Insight: Acknowledging the role of social media in shaping consumer behavior highlights the modern challenges of counterfeiting in a digitally connected world.
Ethical Considerations:
- Evidence: The article touches upon the ethical aspect of buying counterfeit goods, questioning the fairness of a "Robin Hood" mentality.
- Expert Insight: This emphasizes the ethical dilemmas surrounding counterfeit goods, balancing affordability with the rights of brands to protect their intellectual property.
Unintentional Purchases:
- Evidence: The article mentions that some buyers genuinely don't know they are buying counterfeit goods until they receive them.
- Expert Insight: This underscores the importance of consumer education and awareness to combat unintentional engagement in the counterfeit product industry.

In conclusion, the article by Oleksandra Zavertailo provides valuable insights into the motivations behind the demand for counterfeit goods and the broader implications of such consumer choices. The complexity of this issue requires a multifaceted approach, encompassing economic, social, and ethical considerations, as well as efforts to enhance consumer awareness and education.