I appreciate your comments to my post and since you took the time to reply, I’d like to respond to your post. Do pardon me for being blunt, I simply prefer to be direct.
One does not make over $600 billion dollars per year on sheer luck. It takes sheer deliberation, planning, organization, strategy, PR and flawless execution to make that kind of money. Luck has nothing to do with it…. and there is nothing random about it.
Customs officers are not trained at all, no matter the claims to the contrary. In my observation and research on the replica and luxury goods industries I came across something interesting…each factory has a unique identifier that lets the seller know which factory made the item. Yet, according to the media, the people who make these bags are terrorists, use child labor, use the funds to support terrorist activity and are just the shadiest group of people that you will ever find. However, these “shady” people stand to be fined and incarcerated if caught. It stands to reason that if indeed they were who the media tells us they are that there would be no identifier in any case as such could be used as evidence against them in the event that they are caught - or could lead to them being caught. Thus, I have concluded that the identifier, or something similar to it is for customs. It is not there so that they can seize the parcels with the identifier but so that they can seize those without it.
Several things bring me to this conclusion. You cannot patent a shoe, a design, a color, a dress or a name (absent the branding, style, font, etc.). This can be easily seen by brands like Michael Michael Kors, Kate Spade, etc., who will often replicate bags by Chanel and Louis Vuitton right down to the last detail and put their own branding on it. In this regard, I guess you could say that the branding creates a sort of monopoly for the owner in that they have the exclusive right to profit from their branding. Yet, if I wanted to, I could hand make a Chanel classic jumbo flap, right down to the branding - and violate no law as long as I do not sell it - as a replica.
A few years ago there was a company called Oh Dear! who decided to make shoes with red bottoms. This sent Mr. Red Bottom into hysterics and he tried to put a patent on those red bottoms – but he was rebuffed.
Oh Dear! disappeared from the retail scene not long after. Pity...I really liked their shoes, they looked nothing like Mr. Red Bottoms and had a lovely, vintage appeal.
What this means is that once I create a logo/brand, and I patent it, no one can use that logo/brand OUTSIDE OF MY EXPRESS PERMISSION and those who do will face imprisonment or a fine. If a country falls outside the scope of the laws of my country, I can enter into a treaty or pact with that country and specify within that agreement that they enforce/uphold the laws of my country in this regard…to some degree.
But if I allow you to use my branding, you can do so without fear of incarceration…I can charge you for its use and I can stipulate exactly how it can be used.
I can stipulate exactly how it can be used.
The only counterfeit parcels that customs seizes are those who are using the branding without permission. Customs is a government agency and their authority is derived from statute. It is the only basis upon which they are authorized to act. They know how to identify replica parcels because they are trained to know what to look for in terms of indicia on the outside of the package and not the bag itself. The 99.9% of counterfeit goods in parcels that come through customs undisturbed are allowed to pass because they are identified as those who have permission to use the branding.
LVMH, Chanel, etc. are corporations. They constantly seek ways to decrease costs and increase revenue. They are not going to invest any time or energy to train customs personnel to authenticate purses, keychains, or any other item they sell. It is not in their interest to do so, nor does customs personnel have the time, energy or manpower to employ such. They would have to inspect EVERY SINGLE PARCEL that comes into the United States and they are not about to do that.
It is no coincidence that their sales representatives are not allowed to authenticate their products either.
An industry that commands over $600 billion dollars annually has the power to influence a lot of people – including government. Customs is not excluded.
Just look at the many persons on the web that offer authentication “services”. They are in no way affiliated with the brands that they claim to authenticate…yet they exist and people use them. They are considered legitimate by scores of people. They represent just one kind of business that a so-called “illegal” industry has spawned. And where people are profiting from it, they have absolutely no interest in its demise.
I assure you that they do, in fact, care about those “single” parcels. That single parcel shipping to Iowa represents a factory that does business on a large scale. They are selling to individuals…one at a time, yet simultaneously to many single individuals. That single parcel represents other single parcels…shipped to consumers on a global scale. Yes, they care..
They are equally as interested in larger shipments…but only those that do not have the requisite indicia that allows customs to pass them through and only because those without the indicia represent a loss of revenue.
It is interesting how there is always a bit of truth mixed in with the distortion of facts in the media. The sale of replica bags does cause the corporation who owns the branding to lose revenue. But only where they have not authorized the replicator to use their branding.
The employees and the ever illusive “people within the company”are not selling the designs to replicators. That is simply another distortion that was disseminated by the corporation via the media. What I am saying, but don’t really want to say is this:
The luxury goods industry is an expensive industry. In order to keep up its facade, it must keep up appearances. It must occupy prime retail space in in the most prestigious locations. It must redecorate those spaces every few years to keep up with the latest in design. Employee wages, executive salaries, transportation, materials, overhead, utilities, etc., all cost money. They are subject to labor laws, statutes, etc. They must pay taxes.
The replica industry is free from all of these hindrances. I have it on good authority that the factories are safe (in contrast, the factories that make the authentic goods are not) and child labor is not used. There are no shops to redecorate, no prime retail location costs, no overhead, no employee wages or over the top executive salaries, no celebrities to gift. And it is all tax free.
The fact of the matter is that most people are not going to shell out $500 - $50,000 for a handbag or luxury item, whatever the reason. There are only so many sales they are going to make. Celebrities do not count as they are used as mere advertising tools and get the bags for free (and most of them wouldn’t pay the high prices for these items anyway). Their businesses barely break even.
On the other hand, there are masses of people who like their product but cannot afford it or don’t want to pay the high prices they are asking. They know this because they deliberately created the “image” that they are peddling and they understand full well the effect that it has on both sides of the market.
There is, however, a rather large dilemma.
How do I, as a corporation, capture the market share of the masses, without offending my core customer, or rather, without my core customer ever figuring out what I am really up to?
I will let you decide what that means. But I will leave you with a statement I made in a previous post:
Replica bags are made mostly in China. So are "authentic" bags. Do you find this to be odd? Personally, I do not believe in coincidence. Now, I have studied the replica and the luxury goods industries. And the biggest complaint I have heard from those who buy replica's is why the factories who make them can't produce a replica that is exactly like the authentic.
The answer is not that they can't, but that they WON'T. The reason should be obvious.