[sunikkat]

What is the value of those products if the Brand / Logo is taken off? It’s not a secret that the actual cost price of these products are much lesser and they are selling at a high price point for the Brand. I would really be surprised if there are lot of people who are buying them for the quality than the brand value - whether it’s bags, clothes etc. Even the Swiss luxury watches would be hardly costing 10 to 20% of their selling price, even including the marketing costs. What matters is the brand value, sales and support, feeling special etc. So I am confused, how are these luxury brands really impacted because of these stunts?

[shankar.balan]

Originally Posted by AMG Power

As the quip goes, most folks end up spending money they don't have, to buy things they don't need, to impress people they dont like.

And working at jobs that they hate, under bosses that they detest and/ or hold in contempt, in order to pay for the things they buy…its a vicious cycle.

The perennial burden of all those enslaved by the tyranny of the perpetual treadmill of soul-destroying mind-numbing mundanity.

[AltoLXI]

Originally Posted by sunikkat

What is the value of those products if the Brand / Logo is taken off?

Taken to the extreme - 0. Who decides the intrinsic value of anything?

In Walking Dead, Andrea just takes the necklace off the display and and asks Rick if it is looting for which he says the rules do not apply anymore. In fact, I liked the Walking Dead series for its subtle philosophy. When there is no one to buy anything, none of the stuff has any monetary value. Demand and supply

https://www.youtube.com/watch?v=baKewbEZaD8

[PratikPatel]

I think these Chinese vendors have just shot themselves in the head. These stunts of theirs are going to get them blacklisted by these brands. They can forget about getting any future orders from these brands and from competitors alike.

Frustration and hyperbolic belief in anti western propaganda has made them lash-out to the hand that literally feeds and runs their factories.

[StarrySky]

Are these vendors allowed to sell these products even without the logos? I am pretty sure the luxury brands will be the owners of the design and the Chinese are only manufacturers.

I don't think it will stop them, but anyway!

This is different from many other companies sourcing products from China with their own branding.

[Chetan_Rao]

This isn't exactly a brand new phenomenon.

Contract manufacturers for brands have always had surplus (excess inventory, export rejects with minor defects etc.) that they sell in the open market sans the branding.

Unless the luxury brands have protected IP claims on the design, materials and manufacturing methods themselves (which does happen), or contractual requirements to NOT sell anything they don't pick up themselves - such requirements also exist, esp. with niche brands that maintain status by limiting supply, sometimes even by outright destroying excess inventory - it's neither illegal nor unethical for the contractor to sell to someone else, as long as they aren't infringing the brand's IP.

Whether it harms their contracts long-term is the choice they need to make.

And no, nobody's likely to drop contracts en masse over this. First rule of manufacturing (or any business really) is you leave egos out the door and do what's best for business. Brands get stuff made wherever it's the most profitable, and as long as the answer to that is China, stuff will continue to get made there, with or without the occasional posturing and grandstanding.

[AMG Power]

Originally Posted by Chetan_Rao

Unless the luxury brands have protected IP claims on the design, materials and manufacturing methods themselves (which does happen), or contractual requirements to NOT sell anything they don't pick up themselves..

China has a very loose stand on IP laws.It believes that IP is a western concept and not valid in China.

Until recently, US manufacturers could protect their IP if they had a specific contract with the Chinese manufacturer to protect against infringement. An additonal registration under the vague Chinese IP law would also help.

However, after the tariff war, the Chinese government has thrown all of that to the winds. It has informally permitted manufacturers of any item to get away with any infringement / copying regardless of any contract / registration in place.

So none of the designers / owners of brands will be able to do anything about copyright / IP infringement until the US tariff issue is over, if at all.

As they say, all is fair in love and war.

[Chetan_Rao]

Originally Posted by AMG Power

...

As they say, all is fair in love and war.

As they also say, choices have consequences. What's happening isn't accidental, and there's a long way to go yet.

Businesses rarely want or actively support war - except the MIC (military industrial complex) of course, whose business is war - so most of them will bide their time and hope this phase passes without lasting damage.

If it does last, they'll reconfigure how they do business to maintain profitability. Death, taxes and businesses wanting profits at all costs; the only constants in an ever changing world.

[AMG Power]

Originally Posted by Chetan_Rao

As they also say, choices have consequences.

Not really. As you rightly say below:

Originally Posted by Chetan_Rao

And no, nobody's likely to drop contracts en masse over this.

The reference to ‘war’ is the current ‘trade war’ and not a ‘military war’.

[sunikkat]

Originally Posted by AltoLXI

When there is no one to buy anything, none of the stuff has any monetary value. Demand and supply

https://www.Youtube.com/watch?v=baKewbEZaD8

Yes agree. But the question is why people should stop paying for the brand / logo. If they have the desire to spend and can afford, there is nothing wrong. And that’s why I feel the Demand is not going to reduce, unless the economy gets hit drastically.

[jomyboy]

I don't think people here get it, people love a Ferrari and pay top dollars for it. If tomorrow news comes out that Ferrari parts are being made at China and assembled in Italy, do you really think its not gonna hurt their business??? Its the same for all premium brands. People pay top dollar thinking everything about it is uniqueness, made by the best and owned by the best. If I am able to afford a $30,000 bag, if I somehow get news that its being made for $1000 in China or Bangladesh, I would be a fool to be in a rush to buy them. Sure marketing and real estate costs are there, but who is stopping you from charging me $60,0000 for the same??

[mack.mehul]

Trump has gone all nuts in his efforts to start manufacturing of goods in US. I mean that the local manufacturing of goods cannot start overnight but Trump responds by imposing import tariff on chinese goods. Trump is going to end up upside down with his face in mud as china practically controls all the parts of electronic items, computers and what not. Even luxury goods are manufactured in china at lesser rates.

However with the current videos being circulated of luxury goods being manufactured and up for sale in china, i sense a good business opportunity for the said goods in India.

[Linuskm]

Originally Posted by AMG Power

China has a very loose stand on IP laws.It believes that IP is a western concept and not valid in China.

Until recently, US manufacturers could protect their IP if they had a specific contract with the Chinese manufacturer to protect against infringement. An additonal registration under the vague Chinese IP law would also help.

However, after the tariff war, the Chinese government has thrown all of that to the winds. It has informally permitted manufacturers of any item to get away with any infringement / copying regardless of any contract / registration in place.

So none of the designers / owners of brands will be able to do anything about copyright / IP infringement until the US tariff issue is over, if at all.

As they say, all is fair in love and war.

I recall one of my friend ordering a ice maker machine from China for one of his client, the client insisted on a reputed brand machine. It was funny that the chinese manufacturer has offered to put whatever label my friend wanted before shipping the product

[aashishnb]

With luxury goods, you're not paying for the product.

They're not bought for function. You're paying for the exclusivity, snob value, being part of a gentry/group, etc. The same thing applies in various forms in all scenarios.

e.g.1 - Watches. A lot of members here own so-called luxury watches (Pateks, Rolexes, Omegas). Same logic applies.

Reminded me of an old joke/meme (sounds better in Hindi though):
Two watches are talking.
A local brand says to the Rolex - we both show the same time. Why are you so unnecessarily expensive.
Rolex reply - You show time to the owner. I show time (as in status) OF the owner.

2. Cars - Most multi-car garages that have a fancy luxury car in the garage will have an Innova also.