Yesterday we told you about the fake Apple store in Kunming, China, which was discovered by expatriate blogger the BirdAbroad. The store looks exactly like a real Apple store, with fake Apple signs, product displays, and even employees wearing fake Apple t-shirts.
The guys over at the Wall Street Journal have been doing some investigation into the fake Apple store, and whilst the owners of the store refused to speak to the WSJ, they did manage to talk to one of the store’s employees.
“It doesn’t make much of a difference for us whether we’re authorized or not,” he said. “I just care that what I sell every day are authentic Apple products, and that our customers don’t come back to me to complain about the quality of the products.”
It turns out that the fake Apple store sells original Apple products, although they are not a licensed Apple reseller. We wonder how long it will be before Apple shuts them down.
The Rise of Fake Stores in China
The phenomenon of fake stores is not new in China. Over the years, there have been numerous reports of counterfeit retail outlets mimicking the appearance and branding of well-known global companies. These stores often go to great lengths to replicate the look and feel of the original, from the store layout to the uniforms worn by employees. The fake Apple store in Kunming is just one example of this trend. These stores capitalize on the brand’s reputation to attract customers, often selling genuine products but without the authorization of the parent company.
In many cases, these stores are able to source authentic products through unofficial channels, such as the gray market. The gray market involves the trade of goods through distribution channels that are legal but unauthorized by the original manufacturer. This allows these stores to offer genuine products at competitive prices, even though they are not officially recognized by the brand.
Implications for Consumers and Brands
The existence of fake stores has significant implications for both consumers and brands. For consumers, the primary concern is the authenticity and quality of the products they purchase. While the employee from the Kunming store assured that they sell authentic Apple products, this is not always the case with other counterfeit stores. Consumers may end up buying substandard or even dangerous products, believing they are getting the real deal.
For brands like Apple, these fake stores pose a serious challenge. They can dilute the brand’s image and undermine the trust that consumers have in the brand. Moreover, these stores can impact the company’s revenue, as they divert sales away from authorized retailers. Apple and other companies invest heavily in their brand image and customer experience, and fake stores can erode these efforts.
To combat this issue, companies often employ various strategies. These can include legal action against counterfeiters, working with local authorities to shut down fake stores, and educating consumers about how to identify authorized retailers. Additionally, brands may enhance their own retail presence in regions where fake stores are prevalent, making it easier for consumers to access genuine products.
The discovery of the fake Apple store in Kunming highlights a broader issue of counterfeit retail outlets in China. While these stores may offer genuine products, they operate without the authorization of the brand, raising concerns about consumer protection and brand integrity. As companies continue to expand globally, addressing the challenge of fake stores will remain a critical aspect of their strategy.
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