The Real Cost of Knock-Offs

[image error]Think you’re saving money by shopping on Canal Street? While some fashionistas take pride in their knock-off purchases – saving up to 90% — they may actually be doing more personal financial harm than good.  There’s research that says opting for that deeply discounted bag may lead you to spend more than you would have had you just splurged for the authentic version.

In fact, a study from the Massachusetts Institute of Technology Sloan School of Management found that purchasing counterfeit products like knock-off designer handbags makes you up to 70% more likely to splurge on the bag you’re really coveting, particularly when the fake starts to show wear and tear.  And according to researchers at Northwestern University, exposure to these counterfeit goods makes people more aware of, and desirous of, the genuine article.  These ‘gateway’ couture knockoffs give you a taste of the real thing — especially when you receive compliments on your accessory — that makes replacing the fake with the real version extremely tempting.

Additionally, buying and selling fake designer handbags is illegal. Counterfeit bags infringe on the copyright and trademarks of the designers and brands who make the originals, and harm legitimate retailers.  Experts say these products are predominantly made using child labor in China, and even contribute to a billion dollars in lost tax revenue in New York City, for example.

Photo Courtesy, bbaunach.