From product to brand: towards understanding counterfeiting in the luxury fashion accessory sector

This paper presents a preliminary investigation into the counterfeiting phenomenon within the handbag and leather goods sector, by examining the case-studies of the two most well-known, and counterfeited, international luxury fashion brands: Gucci and Louis Vuitton. Through an historical analysis and a mix of marketing and economic history perspectives this paper tries to identify the market evolutions and the competitive dynamics within the luxury fashion industry, that have favoured the development of the counterfeit phenomenon in the last decades. The investigation points out how the increasing focus on the brand image and the intangible values of fashion products have stimulated the growth of counterfeiting. The paper is divided into three sections. The first section describes the main features of the market evolutions of the luxury brands during the last decades, paying a special attention to the demand side aspects. The second section deals with the luxury business and the analysis of the Gucci and Louis Vuitton firms’ evolution, focusing on the transformation of the product/brand relationship and product lines and the changes in distribution systems and advertising campaigns over the time. The last section presents concluding remarks in respect of the findings.