Replica watches and pirate DVDs: They cannot be erased from the market

09.11.09 / Opinions / Author: admin / Comments: (0)
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Although global economic crisis is said to be over already, the luxury watches sector has been hardly hit by the recession. Meanwhile, the replica watches industry has marked significant growth. This again raises concerns and complains of leading watch brands and irritate them to launch wars against replica watches, which I think will have the same result as the wars on pirate CDs and DVDs.

So far, the efforts to fight against replica watches seem not successful. Although some replica watch websites have been shut down and lots of watches replicas have been seized by customs, the number of replica watch website and people who buy replica watches keeps expanding. According to an investigation, the revenues of the global counterfeit industry has grown from $5 billion to between $250 and $300 billion over the past 25 years, which is equivalent of 7% to 10% of world trade.

This reminds me of the war against pirate CDs and DVDs. Pirate CDs and DVDs have been popular earlier than watch replicas. The war against them has a longer history compared to that on replica watches. Yet we can still see lots of pirate DVDs available everywhere.

It is natural that pirate DVDs have strong vitality because they have a solid ground among people, who need entertainment in an affordable way. There are so many sound records and movies produced each year, it will cost a lot of money to buy all these original CDs or DVDs or just go to the cinema to see them. If one can only buy original copies, the entertainment he can have will sharply decreased, and that kind of life must be miserable. Pirates CDs and DVDs meet people’s need. You got almost the same quality of the original copy but only pay about 1/100 of the original price. It is hard to resist this temptation.

Of course, pirate CDs and DVDs are not so popular as they were ten years ago because the advent of free mp3 and movies available on the internet. But it is still hard to erase pirate CDs and DVDs out from the market because they are just indispensable part of the market.

The same applies to replica watch industry too. But replica watches are different with pirate CDs and DVDs in that their sales volume are boosted by internet. Shopping online has become increasingly popular all around the world and internet enables online sellers to reach customer all over the world. The cost of money and time for ordering a nice brand name watch have been significantly reduced, so more and more people would go for replica watches.

In fact, branded watchmakers should not as worry as those CD and movie producers because the core value of the luxury watch cannot be reproduced as CDs or songs. As of a CD or DVD, the core value is the content, which you almost cannot find difference between original copies and pirate copies. But as of watches, replica watches will just not be made of real diamonds and gold and the hand-made movements as their original counterparts, so it makes sense they have different values. To put it simply, replica watches and authentic watches are for different people. Even all replica watches websites are shut down, it is not likely that the sales of authentic luxury watches will raise significantly.

Maybe those big watch makers should think about how they can collaborate with replica watch manufacturers in a reciprocal way.

Can Bubble Tag help Swiss watchmakers?

02.11.09 / Opinions, Watch Industry News / Author: admin / Comments: (0)
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Parmigiani_Bubble_Tags_ProofTagAccording to the latest issue of Haute Horlogerie Magazine, Parmigiani Fleurier have introduced a new authentication system to generate a unique number for each of its new watch, so customers can verify if their watches are genuine.

With more and more advanced watchmaking technology mastered by Chinese watch manufacturers, fake watches feature better and better quality and can nearly pass for an authentic ones sometimes. The Swiss watchmakers are feeling the pressure to fight back to such replica watches.

Parmigiani, a Swiss watchmaker with annual production of around 5,000 units and half its revenues generated by watches retailing at more than CHF 100,000, came up with an idea to partnership with French secutiry solution provider Prooftag to certify the authenticity and origin of its timepieces with Prooftag’s patented Bubble Tag technology.

The Bubble Tag technology uses a physical reaction to generate air bubbles randomly to form a unique 3D pattern, each represeing a fingerpreint code. With 1080 possible combinations, the chances of forming the same pattern twice are next to impossible. So watches with Bubble Tag can be regarded as authentic for sure.

I really doubt this authentication system will have impact on the sales volume of replica watches. As it is well-known that replica watches mainly catered to those with weaker purchase power who cannot afford an authentic Swiss watch. These people, usually ordering the replica watches online, know very well that the watches they are buying are just replicas. It is common sense that it is not possible to get such a authentic watch for so little cost. That is why they buy replica watches. And most honest replica watches sellers will expressly inform their customers that their watches are only replicas. Put simply, most replica watches consumers would not care if their watches have those fancy bubbles.

But these bubbles do have a positive effect to reveal those dishonest watch dealers who sell replica watches to their customers as authentic watches. Since the replica watches can pass for real ones sometimes, some mean dealers try to sell fake watches at the price of the genuine watches and made huge profits. Some dealers may accidently lost the authentic watches and try to fool their customers with replica watches to cover their lost. Now with this new authentication system, those rich customers who intend to buy authentic watches will be better protected.

In most of the times, the replica watch market and authentic watch market do not overlap with each other. The introduction of the new authentication system further diminish those dark areas that were overlapped before. It is good for consumers to know clearly what they are paying for. I wish more and more Swiss watchmaker apply this or similar technology. But as for stopping people from buying replica watches, I think it is just as weak as a bubble.