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0:00
This is the guardian.
0:10
Welcome
0:11
to the guardian long read, showcasing
0:13
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0:15
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0:17
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go to the guardian. Com. forward slash
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room we.
0:25
Spot. The Difference, the Invincible
0:28
business of counterfeit Goods.
0:30
The a nice she went.
0:43
I was standing in front of an imposing townhouse
0:46
in a Swiss sixteenth around the. Then
0:48
comparing. It's classical
0:51
lines, multiple staircases and
0:53
delicately wrought iron balustrades
0:55
alive to see sense of purpose. To
0:58
me. The new grade and conscious
1:00
as songs. Than unusual kind
1:03
of museum. That specializes
1:05
in time to fit. I
1:07
hoped that my face it would help me understand
1:09
a program. The tree branch have been battling
1:12
for decades. That of
1:14
mass market, not costs and. The candidates.
1:18
According to some estimates, the trade
1:20
in fake products is black six
1:22
hundred billion dollars per year. And
1:25
many as ten percent of all branded
1:27
goods. Oh, may be counterfeit. It
1:30
is estimated that eighty percent of
1:32
I handled fake have falsified
1:34
good. We didn't me or not.
1:37
Sales of luxury goods have soared in recent
1:39
decades. Hank. Have
1:41
grown even faster. One
1:44
estimate suggests that candidates has increased
1:46
by ten thousand percent
1:48
in two decades. It's
1:50
not just the overall thickest, the bulk of
1:53
the mind. One French
1:55
customs rate confiscated and Miss
1:57
St. Louis, the tone fabric together
1:59
six. For tennis courts. A
2:02
sweet on a sell out on the online Chinese
2:04
shopping platforms Taobao netted
2:06
eighteen thousand five hundred counterfeit
2:08
facts prince and foot day. A
2:11
back in the trade impounded eighty
2:14
five thousand counterfeits ready for
2:16
the Black Friday and Christmas markets. In
2:19
Istanbul and twenty twenty, almost
2:21
seven hundred thousand counterfeit hair
2:24
care products the seized. Usually
2:27
when there are many more candidates and the real
2:30
thing, you see a collection of some kind.
2:33
Despite the growth of an authentication industry
2:36
with an ever expanding list of. The anti counterfeiting
2:39
toes. There are many activated tamper
2:41
proof sales, security numbers are
2:43
as I do. The radio frequency identification
2:46
parks color shifting thanks holograms.
2:49
He doesn't seem to be happening. wanted
2:53
to make sense of this discrepancy. Why
2:56
can't the design is and the big brands stop,
2:58
oh, really slow down the counterfeiters? How
3:02
do you tell the difference between the with? Thing
3:04
and a fake anyway. In
3:07
many lay down country songs, there
3:09
is typically friend's answer to be Christian.
3:12
Last between displaying products
3:15
and I can defeat Senedd by Sunni. Hopefully
3:17
labeled rate and for. looked
3:21
at what seem to be the same as quoted two
3:23
point five five, she now handbag. In
3:26
fact, the talk told me he was a
3:28
Turkish made knockoff. Where
3:30
do you which know? Two regular and motorist's
3:33
kitchen. Fake was glued
3:35
together. The signature quilting
3:37
was made of cardboard and cotton wool. At
3:40
first sight, Korean bag's looked just
3:42
like lily the top. I'm
3:44
closer examination I notice that
3:46
the distinctive tree farms have been replaced
3:49
by circle and a bar. I'll
3:51
be let down by some superficially similar
3:53
characters in singles, the curly and alphabet.
3:57
Not single element of the designed much.
4:00
The reason. The overall
4:02
effect was unmistakably return.
4:05
The guide explained that this illustrates the.
4:08
Between fakery by imitation and
4:10
fakery by passing off. Another
4:13
cabinet: How the two thousand year old
4:15
Polish fake of Roman answers?
4:19
What should be Roman name on the stuff that
4:21
was replaced by wind and symbols? I
4:25
got a feeling that the museum staff were
4:27
quite proud that oldest faith with
4:29
me. I'm French territory. Rather,
4:32
and stride estate always carrying my notebook,
4:35
wallet and keys in supermarket, plastic
4:37
the. Leaving the hotel
4:39
earlier that day, and I realized that
4:41
the last minute and they showed a bad was
4:43
fake loans and. The museum,
4:46
the guy, showed me the real thing. Nine
4:49
the little girl, so that's that hum of to
4:51
sit with plane gold ring way, it should
4:53
have been leaping long some horse
4:55
and jockey. The inside
4:57
of mine that the deliciously thick
4:59
rubber he only sticky quality of
5:01
the genuine article. Compared
5:04
to the wheel things, the leather on my back
5:06
was or. And he an insubstantial.
5:09
Teaching inadequate. I
5:12
asked the guy about the building. True
5:14
that it was a copy of an earlier seventeenth
5:16
century once in the Moray district. You
5:19
don't mean. Did he misses,
5:21
I we need that the museum was
5:23
it south housed in a counterfeit? The
5:27
guy I'm not exactly. A
5:30
sense death for India. It's
5:32
a copy, not candidate. Whether
5:34
we know I'p p know can't as it is possible.
5:49
The movie "Eight and contrast I saw" specializes
5:52
in luxury thanks. The
5:55
explosion in counterfeiting over the past
5:57
two decades has mostly taken place
5:59
in the made mom. Grand
6:01
knockoffs that used to be sold on market
6:03
stores and now just a couple of clicks
6:05
away on the Internet. The
6:07
products are most affected, are those now. The
6:09
me unlovely Jargon of Marcus
6:12
As. Each product's.
6:14
The mining mass market and three states. At
6:18
premium that skin affordable. No
6:21
clean and separates the some it's
6:23
weekends. Instead of emphasizing
6:26
craftsmanship and tradition, superior
6:28
quality an ex. Typically. Each
6:31
case human cells in given.
6:34
We were filming celebrity association
6:37
and twins. The
6:39
money printing take peek. Each
6:42
book, if you should donation. The
6:44
implicit distance between the world be
6:47
Bruins represent. Communications
6:50
and the product that consumers can actually
6:52
afford to pay. Earlier
6:55
that week, and Amsterdam, net
6:57
bjorn cross. Regional
6:59
director of the anti counterfeiting organizations
7:02
we act. react has
7:04
thirty years experience fighting the counterfeit.
7:07
It handle some and twenty thousand cases year
7:10
working with customs and law enforcement. agencies
7:13
across hundred and seven countries. Three
7:16
hundred or so clients are row cool
7:18
of the world's most powerful right sadness.
7:21
Then you piece products fall into the mast
7:23
each category. Then that
7:25
Abercrombie and Fitch. Hundreds and ninety.
7:29
The me. Leave nice Tommy
7:31
Hilfiger. Then. The
7:33
party. Jack Daniels. The
7:36
you doing? Lawyer. The to
7:38
gamble, Unilever Warner
7:40
Brothers, Yamaha. [Playstation]
7:43
Hello to do. The boy.
7:47
A taxi taking me from the station's girl
7:49
that long balanced our veins to that school of thought.
7:52
Established and it to block of flats. And
7:55
then into smaller and smaller terraced
7:57
houses. The
7:59
driver. Ask me why I come and added
8:01
unimpressed when told him. Why
8:04
can fix in Amsterdam? They don't
8:06
make them here. am from package",
8:09
he said proudly. We make many
8:11
it. We came to a hunk
8:14
outside two storey simply tabled
8:16
house. In the front panel, which
8:18
says is meeting when I was played
8:20
with extremely good coffee recruits
8:23
lists and his colleague Mary had cheated.
8:26
The shelves to my right overflowed with
8:28
the sort of knock off. You might see on a stool and
8:30
access drinking and. The
8:33
Boatswain's holding that fifty time
8:35
on case study earrings in the shape of
8:37
Chanel Apple St. Be
8:39
staffed, pool think Julius mean to. Plastic
8:42
passes with Ganis, multicolor
8:44
lv logos. Well,
8:46
cause he's fake aerial washing powder, stood
8:48
alongside an unopened full pack of
8:50
braun or obey electric toothbrush
8:53
heads. Indistinguishable from
8:55
one out open that morning. When
8:58
he died years ago, when the company started,
9:00
could say, has said. We smoked
9:02
three thousand fakes month, we thought
9:04
we were doing good job. The
9:06
record: one hundred thousand year we were
9:08
pat ourselves on the be. This
9:11
man. Let me change what
9:13
we date and now we're still paying twenty
9:15
five million compensate for, yeah. riyadh
9:19
he's giving speech and market since sliced
9:21
pizza soon. Now they
9:23
monitor the points that which bulk. I'm
9:25
in Japan to fit into the you. The
9:28
pain about such as Russian and fat
9:30
and Brennan. One shipping container
9:33
can hold thousand times. What in smuggler
9:35
suitcase? Pick your bike, put
9:37
the right sheep, the right. No, and
9:40
you can stop tens or even hundreds
9:42
of thousands of fakes in single
9:44
swoop. That is not easy. Around
9:47
one hundred and eighty million shipping containers
9:49
ways around the globe each year. The
9:52
mean of which pass through rocketed? The
9:55
Tigers and his colleagues have to pick
9:57
out which of these identical containers.
10:00
Might be storing candidates and U.S.
10:02
customs officials to wield giant
10:04
bucks off the ship to see if that really.
10:07
The obviously. It's quite fast,
10:09
couldn't tell me too many of the clues and techniques
10:12
he uses his potential feet. Using
10:15
finds himself blacking up not
10:18
rather, than what he is It
10:20
it uses since for minister
10:23
the shit club. The suspicious
10:25
he told me. Because it it's.
10:27
nike shoes, it would say ninety and
10:29
it is added as it would say, editor" Most
10:33
to counterfeit goods come from Asia. China
10:35
and we have bentley to paint to support. The
10:38
often looking at shipping eighteen smothered in fact
10:40
trees and they changed their names all the time.
10:44
They cool things like unit one, two,
10:46
three, four and it's all in Chinese. It
10:48
is sometimes. and
10:50
giveaways
10:53
Hey, for you to sit on the floor.
10:55
Why can't cheat from a third fuel? can you?
11:06
Thank you for listening to the guardian.
11:08
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is the
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guardian.
11:22
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The on Apple Spotify.
11:48
is
11:51
the guardian.
11:56
They come back
11:59
to the can the game. Then.
12:04
The twenty first century branded products
12:06
is made by ever manufacture is cheapest.
12:10
Looking at the center of a vast and complex.
12:12
I am with designers and manufacturers, suppliers
12:15
and shippers, workshops and sweat shops.
12:18
Austin and border officials. It
12:20
will likely be sold thousands of miles
12:22
away from where was the conceived
12:24
or many French it? Some
12:26
products and made from as many as a hundred
12:28
part supplied by dozen or more contract
12:31
is in different countries. The
12:33
even the best and. The engine manufacturers.
12:36
Not all of them while. Ancient. May
12:38
not know what is finding it's way. The
12:40
supply chain. The
12:43
world manufacturers become concentrated
12:45
into few crowded industrial zones.
12:48
Nice and technology easily
12:50
indicated of state. Cross
12:53
skills can be replicated case. As
12:56
rain know, writer and industry. The
12:58
food. The human being contacted
13:01
by monkeys can act. The show up
13:03
and human being, not contract. By
13:05
nike, can take? Almost
13:08
never openly discussed by Pins is
13:10
the fact that many people must be complicit.
13:13
The ring, thanks. The
13:15
polite presumption is that those you can he
13:17
fakes must be in any. The
13:19
tiny can make the same goods to the scenes
13:22
and as. It it's pretty.
13:25
Trying to keep our unofficial fashion and
13:28
any rational shop I should do. When
13:31
put this questions to close, that has and
13:33
couches. The tension of came
13:35
as a counter space. Even
13:38
if you make it exactly the same which
13:40
is navigate. You'd still be stealing
13:43
from the present many features because the
13:45
manufacturer has invested money and advertising
13:48
sponsorship deals building the brand.
13:50
Then. China
13:53
has noted. When you buy
13:55
brand, you're investing in the dream. The,
13:58
you know, beats you were bought by Apple. They
14:00
make had sense that good but not amazing.
14:03
People buy them for cool. You're
14:05
buying quality, but you also buying
14:07
been part of the group.
14:10
The look you can me and smiled. The
14:13
designers and can make a nice pair that with
14:15
nice dream. You might
14:17
and your self esteem will be good. Then
14:20
people would rather buy more expensive,
14:22
genuine article than cheaper fake.
14:25
Even if putting items look almost identical.
14:28
It's because they are buying not just
14:30
the product's tangible qualities. It
14:33
also it's intangible one
14:35
is. We bind the reputation
14:38
of the brand and the reassurance that gifts.
14:41
We nine the image at companies create
14:44
around begins to glossy advertising
14:46
(NPR). We buy into
14:48
the cool they conjure up by sponsoring
14:50
the bright parties are getting the right
14:52
actor or rapper to be. Thanks to the brand.
14:55
Getting the right people can be seen drinking
14:57
the product or wearing or using
14:59
it. The power
15:01
of the intangible attributes of brand
15:04
is it they change, not just how you feel
15:06
about the product. The how you feel
15:09
about yourself. Many
15:12
different words I used to describe a brand's
15:14
intangible qualities. Can
15:17
talk about meaning. I
15:20
spoke. of the dream Is
15:22
used good will? The
15:25
advertisers like to talk about it. Image:
15:27
A marketing professionals prefer brand
15:30
equity. The candidate
15:32
is point of view. The T. V. And
15:35
you balls are simply the part of the product that
15:37
they don't need to talk. Since
15:40
companies that produce branded products
15:42
to separate a tangible send the. The
15:45
tangible. To locate manufacturing
15:47
where as it is. Deepest and to spend
15:49
more on beaming at the brand message.
15:53
The what is becoming increasingly obvious
15:55
is it the brand's best. Strategy since
15:58
the can't take is even better. Would
16:01
they have to do is make copy of the physical
16:03
product at the lowest possible cost
16:06
and they could free ride on the money that the way. Manufacturer
16:09
has spent on advertising sponsorship
16:11
deals. No, the other costs of building
16:13
brand. The riding
16:15
on all the effort it takes to develop and market
16:17
successful product. No one ever bothers
16:20
to take say it. A supremely
16:22
low risk when you're making money. To
16:26
defeating is illegal. He's
16:28
a much lower than for drug trafficking and other
16:31
organized crime.
16:33
The betting on a winning Hawks
16:35
after the race has been run.
16:39
The mood ran. The and on promotion
16:42
and, the last proportionally the physical
16:44
product. that they get the window
16:47
of opportunity they leave open security
16:49
because
16:57
Why are intangibles important? The
17:00
Institute of Becoming A Feast. He
17:03
takes you to travel from home and
17:05
into a bigger market. Deputies
17:07
is need to get potential customers more
17:10
information about them, is that? Compete
17:12
successfully. Because
17:14
we are storytelling animals, this
17:16
is as and based in for. The to.
17:19
me Nice,
17:22
the EU by you tree good at the sixteenth
17:24
century was superior because
17:26
it was in from men in thread. More delicate
17:28
and beautiful, and course, and. Then. Story
17:32
went to Brussels nice, make seat
17:34
and darkened room with
17:36
only soft flight to eliminate that
17:39
painstaking work so that the still
17:41
moist thread did not dry out.
17:43
Fina and more intricate patterns for
17:46
be created and would ever have been possible
17:48
with thread that was dry in Bristol. The
17:50
story kept. The imagination and
17:52
kept the product to the forefront of customer's
17:55
minds. The move
17:57
from product to brand gathered speed
17:59
and nineteen. The country as new products
18:01
began to be transported by mail way to
18:03
unfamiliar market. Consider
18:06
the else. Traditionally, oats
18:09
were fed l need to horses and invalid.
18:12
Then an enterprising milan. Had
18:14
the idea of marketing them as a breakfast
18:17
food.
18:18
If you'll selling oats to people Along,
18:20
by the away. need packaging
18:22
to transport them in, Then you can use
18:24
that packaging as a platform to
18:26
explain to new consumers, how,
18:28
and what time of day, they should be
18:30
eating this product. If you can
18:32
pay cash. memorable name and an image
18:34
for the box that conveys reliability,
18:37
honesty and even the strength
18:39
of purpose of the testing on Oats,
18:41
forgive you. It would be even
18:43
be. Which
18:45
is what the quaker oats. The company date
18:47
and eighty. Seventy seven, when
18:49
it went to set the first American trademark
18:52
for breakfast cereal. Or
18:55
the dawn of the twentieth century. The
18:57
classic for. Modern crimes.
19:00
That place of sale, packaging
19:02
and promotion for all employees. The
19:05
next century or so, the globalization
19:08
of trade and communications may prefer
19:10
the peace promised personality
19:12
and purpose even more important.
19:16
Comic beast. In
19:18
nineteen thirty one proctor and gamble
19:21
use the results of the survey to advertise.
19:23
Honey. The survey
19:25
asked fifty eligible bachelors
19:28
what he looked fall in girl they would manage. Forty
19:31
eight agreed that they wanted. Down
19:34
his charm is natural. In
19:37
case anyone miss the point, the like,
19:39
the survey also consulted seventy
19:41
three damage. It is. Older
19:43
than head that they would not hesitate to
19:45
recommend can for the most delicate complex.
19:49
And about product so? Have
19:51
been feted with an implied and. In
19:54
tangible promise. To
19:56
process. The small investment
19:58
he can I say. The robot. You
20:01
could buy a savvy big dream indeed.
20:05
The second new P personality.
20:08
Came of age in affluent postwar
20:11
U. S. The the nineteen
20:13
fifties quality had sell improved
20:15
across the board, the products could no longer
20:17
be differentiated on that basis alone.
20:20
Now the brand manages chief task
20:23
was to keep his project and identities
20:25
it would set it apart from its rivals. Standing
20:28
on increasingly crowded supermarkets.
20:32
One method which can make the product is
20:34
eyecatching is possible. I know
20:36
that was to add. Humanity.
20:40
We no longer just pretext. The
20:43
can be fun. Hide
20:45
he used Benson ahead. The
20:47
washing powder is orange and yellow bullet
20:49
is. mean, still in use today make
20:51
it instantly recognisable. The
20:54
pad showing how proud has guys hugging
20:56
a package because if it were long lost friend.
20:59
Hi Scott, what won't make
21:01
the all emotional connection.
21:05
The newest p his purpose.
21:08
In response to criticism from campaigners
21:10
brands have begun to present themselves
21:12
as activists. We
21:15
see them banishing that societal credentials
21:17
and inspiring others to do the same. Mikey,
21:21
but he's denied but dream. Crazy
21:23
featuring, Colin Kaepernick, the
21:25
NFL quarterback. The first note
21:27
for the pregame national anthem in protest.
21:30
Racial Injustice, the slogan
21:32
read believe in something, even
21:35
if it means, sacrificing everything just
21:37
silly. A
21:40
claim that it is not selling paint
21:42
pins. of optimism donates
21:44
half a million liters of paint to teams
21:47
of employee volunteers to give facelift
21:49
to run down urban neighborhoods. In
21:52
human, I have a racist lot
21:54
of into let's because having he's just
21:56
one percent revenue to men's mental
21:58
health cavities. We
22:01
increasingly been plans for the lifestyle
22:03
that encapsulate and the values they
22:05
may present. To put
22:07
it simply the. to jack to influence
22:10
over the past century or so hoping
22:12
to sell you more No, he,
22:14
he.
22:28
Selling feelings and tangibles
22:31
is such a good. Did he get no
22:33
individual brand as? Manufacturing
22:37
cheaply and adding more emotionally
22:39
to the product is new chief and image.
22:42
The good recipe for survival. Everybody
22:46
is employing similar strategy. "The
22:48
only way to compete it to go bigger,
22:50
an intangible", said the next. Therein
22:54
lies the problem. The
22:56
story of modern marketing administer
22:59
way of runaway arms race. Image
23:02
Building brand tickets: A King Social
23:04
Media Babel Creative Advertising
23:06
Celebrity endorsements. Woody
23:09
activities that leap it can see my to
23:11
think war. If you're trained at a band.
23:13
You need to be things. That
23:16
because sending intangibles is gift
23:18
to free riding tend to take us. The
23:21
more companies spend on this kind of band
23:23
built on. The more they feel, the
23:25
rise. The bakery. That
23:27
is potentially calamitous the brand's
23:29
as whole. And that's
23:32
why out would be for parents to decide
23:34
together to put effort on the brakes
23:36
and agree that everyone sub similar tiny seats
23:39
cuts. The and on intangibles. A
23:41
move it would leave the competitive hierarchies
23:44
I'm touched while allowing them or
23:46
to spend more on their workers and their products.
23:49
The council that happening is almost zero.
23:53
It would require the ban is just.
23:56
to make the people open the among themselves
23:59
The only. other brands
24:01
to do the right things and The cheek,
24:03
my secretly increasing, rather than purchasing
24:06
spending on intangibles. tied
24:09
to expose the value or otherwise
24:11
of the different parts of that brand's to point
24:14
of view. No
24:16
wonder they would rather tackle the counter protest
24:18
and the causes of counterfeiting. Some
24:23
more guardian long remains intact.
24:25
Go to the guardian.com
24:28
on
24:30
Soundcloud at SoundCloud, the
24:33
guardian long read.
24:41
That
24:42
was Spot. The Difference, the
24:44
Invincible business of counterfeit Goods
24:46
by Alice Sherwood. Right
24:49
by Powell and produced by Jessica
24:52
Beck the executive producer
24:54
was Max Anderson. This
24:57
is the Guardian or.
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