FAKES

Balfour, Frederik (2005) Fakes, BUSINESSWEEK, 2/7 p. 55-64

The global society is spawning an old concept in a new bottle. Most of the time, they are called KNOCK OFFS, they really mean that you are looking at or using a product that was not produced by the brand and its company. The fakes are built in sweatshops, don’t pay taxes, don’t invest in research and development, are not accountable for environmental laws and turn a high profit.

On the general market, they can be sold alone or intermingled with the real thing. They are golf clubs, medications, cigarettes, alcohol, or just about anything. There is no quality control. The poorest materials are used and some glossy finishing is added.

The profit is incredible and right now they are coming from China. You pay less and get even less. They are too good to be true. Roughly about 5% of the market is composed of fakes.

Monitoring and policing is incredibly tough, but is being done. China once turned a blind eye to the stuff, but it is now threatening there own markets so they have increased policing.

As an example, you buy a high priced golf clubs. The price per set of irons is $1600.00.

The fakes cost $1200.00. What is the difference? They sure look the same. However, on the fake, the shaft is more easily breakable. The head may rust and golfers are more likely to slice or hook their shots.

In one medication, the fabricator put in yellow paint to get the right look for a popular medication. Pricey LIPITOR has a fake with some Lipitor in it. However, the dosage is so small as to not help the patient. “Poseur parts” look good, but may be retreads that are repainted to look new and refined to pass visual inspection. Look a like handbags can be just about 5% of the cost of the real thing.

Movies and CD’s that are frauds are hard to spot.