Luxury brands like to establish a unique relationship with their customer providing a special and rare shopping experience. The are strict with brands whom are not selling well and remove them only having successful retailers available.
Wealthy Consumers who can afford luxury goods feel that fake products damage the Fashion Industry according to the luxury institute 75% of those surveyed said that they could tell the difference between the the real and fake versions. They believe that countries should be sanctioned for prohibiting the selling on fake goods and 85% believe China is doing the least about it. Fake goods are a lot cheaper than the real versions and are more affordable to everyone especially the working class as they can range from £25/€30 to about £500/€600 for a good quality/ leather good. Making these fakes so affordable and having a range of better quality fakes means that people are less likely to purchase the real thing as it will be more expensive meaning that the Fashion Industry are losing money because of it. Brexit has made importing fabrics and resources from other countries a lot more expensive meaning luxury brands will have to charge more meaning people will defiantly be more likely to buy fake goods.
An interesting theory I found in this book was also the Lipstick and Necktie theory which is about the economy. They presume that the sales of luxury lipstick/neckties will rise as people will want an affordable luxury as they are not as they are not as expensive as designer garments and bags.
A lot of products that come to the UK are made in China and a lot of garments are made in China. China is one of the biggest exporting and importing regions which makes their earrings significantly higher than their expenditure.
Globalisation is about the way production for markets is global, that it involves places from all over the world to enable the process from fabrics to the manufacture then to store. ‘The “Silk Road” from East to west is an early example of a supply route transporting products from where they were made in China through to the markets of Europe where they were sold.’
BRUCE, M and HINES,T ( 2007)Second Edition Fashion Marketing Contemporary Issues, 2nd ed.Routledge.
JOHNSON, K.K.P and YURCHISIN,J(2010) FASHION AND THE CONSUMER 1st ed. Berg.