“You’re nothing but a second-rate, trying hard copycat,” said the Prada handbag to “Prado.”

This April, Western luxury brands insisted that their products were made in their own countries, contrary to Chinese influencers’ claims that these were made in China’s factories. The brands, painting Chinese products as counterfeit, were losing sales to the factories’ direct-to-consumer marketing, brought about by US President Donald Trump’s tariff impositions on China.

A keen eye is essential to distinguish real from fake, as counterfeiters intentionally imitate the exact trademark, including the design and logos, of original brands without permission. Deceptive counterfeiting deliberately swindles consumers, according to economists Gene Grossman and Carl Shapiro. 

But nondeceptive counterfeiting also exists, and it targets consumers fully aware that counterfeits are fake but continue to purchase them. They do so for multiple reasons—fame, prestige, or social standing. 

In developing countries like the Philippines, buying counterfeit goods has become more widely accepted and normalized today. TikTok influencers promote products similar to their original version but for a cheaper price. Dupes of Western fashion brands are likewise found in virtually every local market stall in the country. 

Despite several attempts by authorities to seize counterfeit products and raid markets, goods only multiply and tiangges continue to thrive. This is because in developing countries, consumers purchase counterfeits not mainly due to preconceived ideas of luxury, but of inaccessibility. Counterfeit products reflect the evergreen issue of access to quality goods rather than deceit, and the continued consumption highlights the need for developing local industries to sustain a population valuing accessibility and affordability.

Crazy Rich Americans

The Philippines has become a market for surplus goods imported from the US, where products are sold for a higher price. Together with the entry of luxury goods, the idea of Western superiority and colonial mentality also arrived since American occupation. 

Luxury became associated with social class, according to Thorstein Veblen’s concept of conspicuous consumption. Branded luxury goods became a demonstration of “wealth and social prestige,” and in the Philippines, Western luxury brands became indicators of superiority. Special treatment, for instance, is given to people who flaunt their luxury handbags.

Today, counterfeit luxury goods in the country are sourced from other countries, with China as the largest source, and are sold at markets like Greenhills, Divisoria, and Baclaran. Counterfeits are produced in different countries to avoid detection, and the last stage of production occurs at the market country or where the products will be sold, according to a Global Business and Development Law Journal study. 

For developing countries, it reports, counterfeiting “facilitates the transfer of technological benefits and marketing skills to domestic producers.” Counterfeiting enables these countries to have technology not accessible through other means. Japan, for instance, permitted counterfeiting of foreign goods as it allowed them to compete with the Western market. The Philippines, primarily being a large market for counterfeit products, also struggles with insufficient technology for goods production.

Confessions of a Shopaholic

Although consumer perceptions surrounding luxury still exist in the Philippines, conspicuous consumption mostly thrives today in the West. In the local context, changing motivations reflect a shifting market that challenges the idea that counterfeit products are only purchased to conform to luxury. 

Accessibility is a major factor for purchasing counterfeit products for the Filipino youth, rather than socio-cognitive reasons such as peer pressure, social image, and professional image, according to Liezel Bumanglag, a former consultant of the Intellectual Property Office of the Philippines. She also stated that it is the consumers’ personal choice to purchase these counterfeit products, and they claim to have no problems doing so.

Even though consumers know the products are fake, counterfeit products are everywhere, and they are affordable. For a student who immediately needs a shirt, bag, or slipper, the tiangge is only one stride away.

The online market also made it easier for counterfeit products to be sold,  especially with the rise of influencers and fashion content creators who purchase and use them. A quick search of the counterfeit hubs on YouTube and TikTok would reveal vlogs with tips and tricks on navigating these booming markets.

About Time

Intellectual property laws intend to protect original creations and inventions used for commerce, including trademarks of luxury brands. But counterfeits will exist as long as there are manufacturers and traders, and simply raiding the local markets will not suffice, as they will keep returning to their stalls. 

And contrary to popular belief that counterfeit products are only made in developing countries, developed countries such as the United States and the United Kingdom also produce these, with 20% manufactured in the US. This shows that counterfeiting still prospers even in countries with strict intellectual property laws.

If accessibility to quality products is the problem, then there is a need to develop local industries instead of depending on foreign markets. To date, some local brands and businesses commit to creating products catered to the needs of the Filipino. But the local industry grapples with a lack of necessary tools and technology to foster growth.

Developing industrial science and technology independently, free from the influences of foreign markets, is one key to achieving national industrialization. From there, manufacturing and production technologies will aid in creating products that are accessible and affordable for Filipino consumers. The insufficiency of these technologies is what pushed the production of counterfeit products in the first place.

Once industries are trained to be skilled and competitive, quality and affordable options would be within the reach of every consumer. The Filipino may wear “Prado” today, but by developing their own industries, they may soon be able to parade products of their own. ●