Thanks, this is precisely the type of info I was looking for. According to writer, Dana Thomas, Chinese companies are
1) spending a lot of money hiring Italian craftsmen to teach the counterfeiters, 2) using 3D computer scans and other high quality electronic equipment and "the process produces perfect copies of patterns"
We are talking organized crime here, using former employees who divulge corporate trade secrets, hiring away legitimate European craftsmen with better wages than the couture houses themselves to teach, probably, my guess here, making deals with subcontractors of the same couture houses to supply them with authentic materials like the correct zipper and hardware company.
I may be wrong but weren't there fake Balenciagas with authentic Lampo zippers made with the same leather because they were from the same source. The only reason it was spotted as a fake was the non-existent ID number or the hardware was twisted in the opposite direction, or the color was not made during that season. It was simply not a quality issue. I would assume the serious criminal would be following the tPF to make corrections. The result is the criminals willing to invest millions to make quality goods are benefiting by the price increases of the design houses because their copies would be sold for $400 and higher where the originals are $2000 and higher. We are talking copies so accurate even returns of fakes would be undetectable by department stores and possibly resold. This is like identity theft.
On one hand we have couture houses selling items that don't require expensive materials (canvas, plastic) at astronomical prices. Their only value is the "uniquenesss"??? of the idea. And on the other hand, we have multi-million dollar crime organizations willing to invest in undetectable superfakes because the cost of the same material is low (high end canvas or plastic is still what it is, and even the best vachetta or other leather has its limits) and they have a trained workforce whose working conditions are not much worse than the legitimate ones (again superfake makers, not the cheapo replica sweatshops) livable working class wages.
If the superfakes can be made at the same cost as the legitimate ones, then the only difference becomes costs of marketing which the criminals don't have, allowing for lower prices and still a healthy profit margin. Raising prices beyond the reasonable cost of materials by the likes of LV, Chanel,
Prada, Burberry may actually be doing the counterfeiters a favor because it allows them to make better fakes at higher quality cost and still sell at a price to make a good profit. In order to stop this, the couture houses will have to have astronomical quality goods to match their prices which means less proft margin. So who's being greedy? It goes back to what is the meaning of luxury.