20 July, 2011

On Branding and Counterfeit Goods

Today a friend came across a story about a fake Apple Store in China that was made to be a more or less exact replica of a real Chinese Apple Store, to such an extent that the bloggers and reporters discussing it weren't even sure whether or not it sold actual Apple products. It is even thought that the employees of the store believe that they are working for the actual Apple company. This article appeared on the heels of an announcement that Apple had a 125% increase in quarterly income compared to a year ago and shows no signs of slowing its pace.

I've written very little on counterfeit products because my opinion on them has not been cemented. On one hand, I believe that people should get what they think they're buying, and that counterfeit goods are almost always inferior in quality to their originals. People often buy name-brands because the quality and consistency of these products is ensured, just as people eat at chain restaurants or buy Starbucks, and counterfeiters often circumvent quality control by simply pasting the label of this brand on their sometimes lamentably inferior product. On the other hand, I'm often shocked by the extreme price mark-up that comes with a well-known brand, and almost feel that consumers are getting what they deserve if they are fooled by a counterfeit of that brand. Apple products, for instance, are aesthetically pleasing and generally work very well, but cost twice the price of their PC/smartphone/tablet counterparts for little discernible reason. I know I'm speaking blasphemy in the opinions of some of my readers, but the brand loyalty Apple has garnered is almost as insidious as the counterfeit rings that copy Apple's logos. The counterfeiter exploits the already brand-brainwashed public--is he a criminal, or an opportunist?

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