Telling the difference between real luxury goods and super fakes

By Carolyn Enting*

It used to be that you had to know someone in the know to get a good fake handbag. It was also easier to tell the difference between real and fake. Today, quality fakes have never been better - and sellers are far more blatant with advertising their wares.

The influx of luxury reps on the market is also upping the stakes on finding counterfeits pop up on popular reseller platforms. So how do you tell the difference?

Reseller platforms like Designer Wardrobe use the services of Nancy Krakowka of My Haute, New Zealand's premium designer authentication provider.

Krakowka is often called upon by Designer Wardrobe or buyers and sellers on TradeMe for her services as an independent authenticator. Her website also offers free scam assistance advice.

"We offer guidelines for both buyers and sellers via two articles on our website; 'Scam Assistance' and 'Entrupy'. This offers pointers with regards to purchasing/selling preloved designer, assistance for those who have been scammed, and in our 'Entrupy' article we also discuss why we do not recommend relying on AI-based authentication," says Krakowka.

Designer Wardrobe is currently transacting about $1-1.5 million worth of product or sales on its site every month and deals with a single digit number of inauthentic items.

"We're not immune to fakes," says Designer Wardrobe chief executive officer Aidan Bartlett.

"Thankfully it's very rare on Designer Wardrobe because we make it as hard as possible to sell replicas on the site, but it has certainly happened. In these instances, we have had the item authenticated. In a lot of cases the sellers aren't aware that what they're selling is actually a replica, so it's a surprise for them too."

Luxury bags are still quite a small category for Designer Wardrobe, however it has grown 70 percent year on year, says Bartlett. The top-selling bag "by a long shot" is Mr Robin, by New Zealand luxury accessory manufacturer Deadly Ponies.

"There's a growing demand for pre-loved luxury bags, which is why we're putting a lot more effort into it because we do want to be a highly trusted source for buying pre-loved," says Bartlett.

"We proactively use AI to evaluate a listing's image, description and price at the time of listing, and encourage our members to report listings they believe to be fake, helping to protect other buyers."

Real versus fake

If you purchase an item through Designer Wardrobe or TradeMe, you may be covered by the platform's 'purchase protection'. After the sale of a big-ticket item, Designer Wardrobe will proactively email the purchaser to say, 'hey, this is what we would deem a high-value purchase. We would recommend that you get this authenticated when it arrives and here are the steps to do that'," says Bartlett.

Designer Wardrobe also offers tips for buying pre-loved luxury goods and encourages buyers to research the seller and similar items. Do they have good reviews and a great reputation? They suggest researching the item you're looking to purchase. First, check whether a certain style or colourway can be found on a brand's website or archives. Check the price for similar listings and understand any reasons for a 'too good to be true' deal.

"Luxury bags retain their value over time (and sometimes increase in value), so consider why sellers would want to let go of their items at such a reduced price," says Bartlett.

"Most sellers of genuine products will also include seller authentication verification such as original receipts, authenticity cards or certificates. If the buyer is not prepared to provide authenticity documentation, we recommend not proceeding with the sale."

Carrying a fake can also contribute to reputational damage for designers, says intellectual property specialist Natalie Harre of AJ Park Law.

"The fakes have gotten a lot better. There's counterfeit which is so obviously a counterfeit, and you know you're not buying a genuine product at either the price point or the quality, or normally both. But the better the fake gets, I think the more damaging that can be to the brand because you've got either the person who knows that they're buying a super fake, and they'll have their reasons and their justifications for that, but you also might have that innocent buyer down the chain who thinks they're buying a genuine [item] and then they pay for a fake.

"That can be far more damaging to the brand than those very obvious knockoffs."

Where are the super fakes coming from?

China remains the dominant supplier, though production is also happening in countries such as Turkey, Krakowka says.

"In the last decade in particular, there have been noticeable changes both within the designer industry, as well as the replica industry. While there are exceptions, many have pointed to an overall decline in designer quality. Some see this as fuelled by a drive towards lowering costs via routes such as offshore production, less ethical practices, cheaper materials and a move away from artisanal craftsmanship," she says.

"At the same time, the replica industry has developed and become more sophisticated. This in turn has created a degree of convergence between the two. There have also been reported incidences of employees of designers working in collaboration with replica producers and there is significantly less downtime between replica being issued, with certain models being released concurrently and, in some instances, even prior, to the genuine item."

What's getting in?

It's hard to quantify the number of counterfeit goods currently coming into New Zealand. Michael Smith from the New Zealand Customs Service says they regularly encounter counterfeit goods at the border across a variety of goods, including fashion and accessories of varying qualities.

"Counterfeit goods arrive by all methods - with travellers in accompanied baggage, as well as through the mail, air and sea freight. Customs' focus is on commercial quantities of counterfeit products," says Smith.

According to a recent report by ABC News, in the last fiscal year US Customs and Border Protection seized nearly 23 million counterfeit goods nationwide, worth more than US$2 billon in estimated retail value. The most common counterfeit items continue to be luxury goods.

"The problem is not yet of the same scope in New Zealand as it is overseas, but we are definitely seeing a significant increase in volume," says Krakowka.

"We see a wide range in replica quality. I'm always hesitant to provide an estimate on what number of super fakes we have come across as the opinion on what level of replica qualifies as a super fake can vary markedly. While the market here is not yet as saturated as it is in many overseas locations, we have noticed a steep increase in the level of replica that is circulating in both New Zealand and Australia, as well as an advancement in scam tactics."

Krakowka is advising clients to be aware of replica that most would consider super fakes, as well as scam selling practices such as pairing a replica bag with a genuine purchase receipt/packaging or a seller using photos of a genuine item but sending out a replica version.

"We also caution when it comes to authenticity certificates - we are aware our own certificates have been doctored and replicated worldwide and we always advise to refer back to the authentication provider to confirm they have issued the certificate and that the item it has been paired with matches the authenticator's records."

Read part 3 of our 3-part series on luxury super fakes Thursday.

*Carolyn Enting is a freelance writer.