ABSTRACT
Luxury item “knockoffs” compete with brand name luxury goods. But they also buttress the market for luxury goods. To begin, counterfeit goods increase consumers’ awareness about brand name goods in countries like China. By creating their own brands, counterfeiters also inject creativity, innovation, and competition into the luxury goods industry. As Shanghai furniture designer Zhengguang Ho explains, China’s copy culture is like its one-child policy-a source of social disruption and an engine of economic growth. In the 30 years that have followed China’s economic liberalization, Chinese consumers have cultivated a taste for luxury goods through their consumption of counterfeit products.
