When Imitation Is Criminal

In the second part of our special on the phenomenon of counterfeiting in watchmaking, we look at some surprising reasons behind consumer demand

- JOSH SIMS

When Bill Clinton's strategist James Caville was asked what mattered most to the forthcoming election campaign, he coined a phrase that would enter the political lexicon: "It's the economy, stupid". So anyone who might ask why people buy counterfeit watches might similarly reply: "It's the price, stupid".

The fact that demand is high - some 40 million fakes are circulated every year, according to the Federation of the Swiss Watch Industry, and that is around 25% more than the Swiss industry produces might well point to this fact.

Indeed, watches are among the most counterfeited products, representing around 30% of all counterfeit goods. Why else would anyone buy a fake, if it was not for the fact that the 'real thing' was relatively speaking, and for all sorts of reasons - so expensive? If only the world of counterfeit watches was so simple. Xuemei Ban, professor of marketing at Northumbria University, UK, who has made a study of the psychology of buying counterfeits, points to some rather unexpected findings of her research. "Of course people would be much less willing to buy a counterfeit watch for the design alone, if it wasn't a matter of [buying into a status] brand," she says.

But, she adds, the big picture is far more complicated than consideration of fakes has, to date, really given credit for.

Looking the Part

Take fun, for example, Yes, fun. Counterfeit watches have entertainment value akin to fast 'disposable' fashion, also known for 'ripping off' more expensive designer styles. "In terms of its function a counterfeit may not be as good as the original, yet it still serves a purpose [in that it still tells the time] and lasts long enough to make economic sense," she says. "It's like buying a fake Manchester United shirt. For the few times you're going to wear it, the fake works".