expire-images:2009-4-3

Classes in Counterfeiting Cause Controversy

Filed under: Apparel

We all know that counterfeit goods cost luxury companies a fortune but Forbes reports that companies such as Coach and Louis Vuitton have taken a new course of action, funding college classes on counterfeits. The International Anticounterfeiting Coalition which includes companies such as Cartier, Chanel, Calvin Klein and Tiffany gave from $5,000 to $10,000 to seven colleges for a course that instructed students in the negative effects of counterfeit goods. Colleges such as Hunter College in New York, California State University, Sacramento and the University of Miami took the money which was given for course materials. Things didn't turn out so well at Hunter College last year. Once professors found out about the class which co-taught by public relations rep., there was a bit of a protest. Check out the the article on Inside Higher Ed which details the class, including the fact that students were asked to create a fake blog that told a story about counterfeiting as seen through the eyes of a fictional college student. While it is not unheard of for corporations to sponsor certain classes or research, the particular nature of this class, which was taught by a professor with limited knowledge of the subject who was asked to present a one-sided view of the problem, has angered many.

UPDATE: In a related story, WWD reports that outside of the Brooklyn Museum Murakami event tonight, Louis Vuitton is setting up 10 street vendors to sell authentic Louis Vuitton product and special Monogramouflage canvases that Murakami has created specifically for the exhibition. The presentation is meant to highlight the issue of counterfeit goods.

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Tags: counterfeit, expire-images:2009-4-3, fakes, hunter college, international anticounterfeiting

Will the U.S. Economy Affect Baselworld?

by Deidre Woollard (RSS feed) —

Filed under: Timepieces / Watches

Every year the watchmakers and jewelers converge on Basel, Switzerland in the spring for Baselworld and the SIHH show. It is the place where exhibitors display some of the most dazzling luxury goods in the world. But this year, fears over the U.S. economy may be dampening the usual excitement.

The show, like fashion shows, is one that looks ahead, trying to sell buyers on the goods they will want in their stores in September and October for the holiday season. Many are already predicting that the Christmas business of 2008 will be bad news for both the U.S. and Europe. The annual event has over 2,000 exhibitors and attracts around 100,000 buyers. According to Jacques Duchene, president of the BaselWorld Exhibitors Committee quoted in National Jeweler, last year was a boom year for Swiss watches: Swiss watch exports reached about $15.75 billion last year which was a 16 percent increase over the previous year, and a rise of more than 50 percent over the previous four years.

In this Reuters article, Rolf Schnyder, the chief executive of Swiss watchmaker Ulysse Nardin is quoted as saying that the slowdown in the U.S. market will generally affect the mid-range products. This reflects the general trend we have seen where luxury consumers at the top of the market are spending but those that are at the lower end of the affluence spectrum are cutting back.

For those who make watches and jewelry, bright spots can be found by looking east. Increased demand in Asia, Russia and the Middle East will likely provide most manufacturers with market growth even if other economies continue on their gloomy course. One thing that I will be curious to see is if the change in consumers will change the products. The big spenders in these markets often have particularly lavish tastes and a taste for diamond and jewel-covered watches as opposed to more subtle watches with elaborate complications. I wonder if in the next few years, the major manufacturers will be shifting their output to attract these customers.

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Tags: baselworld, baselworld 2008, economy, expire-images:2009-4-3, watches