Robert Thompson

Luxury Goods MNCs Collaborate to Battle Counterfeiting in China

China counterfeitsA corporate strategy article by Thunderbird students David Curtis, Merissa Gordon, Kori Joneson, Emily Mahoney, and Robert Thompson

The luxury goods market in China is a must-enter space for global companies in this industry. Research indicates that multinational corporations (MNCs) need to assess their current strategies and take advantage of challenging, yet rewarding opportunities in emerging markets1.  By 2015, China will represent 20% ($27B) of the market in luxury goods, and MNCs like Marc Jacobs cannot afford to hesitate in penetrating this emerging market2.  The Chinese view these high-end products as “trophies of success” and are worn as such3.  Labels and visible brand symbols are critically important for show in public, but rarely of value in the home. While this new market opportunity presents promising avenues, the Chinese market is known for its battles with infringement through counterfeiting, parallel importing, or unauthorized selling of goods.  Companies like Marc Jacobs are forced to address this issue head on and seek ways within their global strategy to develop solutions.

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