The reason for the ‘myth’ happening when Louis Vuitton sells fake bags in its own store
As reported, recently, the reputation of luxury brand Louis Vuitton has been affected after being accused of selling fake bags to customers in China. Specifically, a document revealed online said that earlier this year, a local court in Furong (Hunan province) ordered Louis Vuitton to compensate customers.
The customer bought a Vaugirard bag and a small accessory last September for 22,350 yuan ($3,350) at the store located in Changsha IFS shopping mall. The bag was later confirmed by a third party to be fake.
In addition to returning the amount the customer paid for the product, Louis Vuitton was also ordered by the court to pay $10,050 – three times the value of the bag. After the ruling, the representative of the Changsha IFS shopping center said that they will set up an investigation team to protect the interests of consumers.
Responding to this “mythical” situation, Zhou Ting – a luxury goods expert and director of the VIP research institute said that anything is possible. All Louis Vuitton stores are directly monitored by the government and there is certainly no chance of counterfeiting.
However, in reality, there will be many situations where counterfeit goods can be illegally brought into the store. The most common is the case of employees swapping goods. The real product will be taken away by the staff and swapped in the fake to sell to customers. “This situation is inherently not new to not only Louis Vuitton but also luxury brands in general.”
Zhou Ting said that staff in luxury stores “stealing” real products from stores has happened before.
In September 2021, a store of the Gucci brand in Ing’an district, Shanghai reported to the police about the incident. During the inspection of the company’s stock in the store, it was discovered that many Various bags in stock were identified as counterfeit, and it was suspected that they had been swapped.
According to the police investigation, the employee named Jin – who was retired at that time bought fake bags of this brand at cheap prices online many times during his work.
As it turned out, Jin was selling the brand’s new bags on used shopping websites. After making a deal with the customer, he bought the same fake bag online and exchanged for the real one in the store, then sold it for less. Prices in stores can range from 3,000 to 5,000 yuan.
Jin used the same method many times to sell 5 bags and made an illegal profit of 57,000 yuan.
Later, when Jin found out that the company would check the warehouse and could find out about the incident, he immediately resigned.
In addition to being exchanged for fake and genuine goods by employees, Zhou Ting believes that there are many other situations that could lead to this.
First, a group of employees came together to sell counterfeit goods behind the brand’s back. They hide their brands and sell fake products to customers. This phenomenon happened in the Chinese Hermès.
The second is that the brands themselves sell poor quality products. Zhou Ting said that because of the sales boom, luxury brands struggle to find suppliers when supplies are scarce. The supply is in short supply, many fake products are of better quality than the real ones… causing fakes to appear at the store.
Source: Tellerreport
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