Source: https://blogs.ubc.ca/jeremyliang/2012/10/09/she-is-poor-enough-to-buy-a-lv/
http://www.chinadaily.com.cn/cndy/2012-06/05/content_15473458.htm
http://www.commercialappeal.com/photos/2010/aug/16/182257/
http://www.theaustralian.com.au/news/world/chinese-consumers-shun-louis-vuitton-and-gucci-for-being-too-common/story-fnb64oi6-1226490441221
I totally agree with you. Increased amount of forged LV bag is definitely a threat to the LV stores in China, a change of consumer taste preferences led to significant decrease in sales in its stores.
Forged LV bag is a major concern for luxury goods company. Conspicuous consumption goods like LV bags are associated with high purchasing power, however a forged one would destroy this relationship because it costs only 20 Canadian dollars. Entry and exit of the handbag forging industry is easy and the low price is its major points of difference. Barrier to entry is ignored as forging is illegal.
There are many causes of increase amount of forging handbags. An increase in average household income in China, the nature inclination to show off and save money are the main reasons. The supply could not catch up with huge demand might be a reason too.
