The efforts of luxury-goods makers to eliminate counterfeits have finally borne fruit. A massive organised counterfeit luxury-goods operation was unearthed and two people were held responsible for it and convicted by a U.S. jury according to a release of the Justice Department.
Chong Lam and Siu Yung Chan were found guilty of importing illegally from China, counterfeit products of luxury-goods brands, particularly handbags, wallets, purses and carry-on bags, and selling it in the U.S. The ruling was pronounced by a Richmond, Va., court.
The prominent brands and the companies directly affected by this operation were Burberry, Chanel, Moet Hennessy Louis Vuitton, Gucci Group, Coach Inc. and several others. The Department said that the value of the smuggled goods or rather the corressponding value of the authentic luxury goods was estimated to be more than $100 million. The evidence presented in the court proved beyond doubt that Lan and Chan were operating a large international manufacturing, import and wholesale business in counterfeit goods. The shocking part of the evidence was that the duo was controlling officers of at least 13 companies.
The companies in the field of luxury goods have been very aggressive, in the recent times , in trying to eliminate the counterfeits flooding the market. It doesn’t just mean a loss of sales but more importantly the dilution of the brand’s image and credibility. They realise that if the counterfeits are not eliminated or contained at the least, their long term survival will be jeopardised.
Via: nasdaq
