With around 26 million fake goods worth AED1 billion ($270m) seized in Dubai in 2017, the highest problem facing luxury brands is authenticity, as per the CEO of a start-up that sells pre-owned designer goods.
Kunal Kapoor introduced Dubai-based The Luxury Closet in 2012 to permit users to sell and purchase genuine, ‘pre-loved’ goods online and in store.
He said to the Arabian Business, “Companies like us are really good for brands because we spend a lot of resources to make sure the item is authentic.”
He even told, “The biggest problem facing luxury brands is authenticity and counterfeit items in the market.”
The start-up ships globally and has an evaluated 20,000 stock base, adding products worth around $5 million on a monthly basis.
All creations undergo an authentication process to confirm originality, and consumers are provided with refund guarantees in case of falsification.
Products from brands like the Dior, Chanel and Cartier – which do not provide sales – are discounted at rates of up to 70% at The Luxury Closet.
Collections varies from a $42,535 18k Rolex Day-Date wristwatch to a $100 Yves Saint Laurent shoulder bag.
While the readiness to vend preowned discounted luxury products is specially high in the region when matched to the rest of the world, Kapoor stated that many stay unable to afford highly priced designer goods, choosing for counterfeit products instead.
Concepts like the Luxury Closet can solve that problem, mentioned Kapoor, who used to work as a retail sales manager for Louis Vuitton at Mall of the Emirates.
He stated, “You see people who have never bought Louis Vuitton, who dream about buying one product.”
He even told, “I clearly saw a huge pain point… If we shift consumer practice from buying counterfeit to buying pre-owned, it’s really good for the industry.”
In March this year, the Commercial Compliance and Consumer Protection (CCCP) sector of Dubai Economy suppressed a number of fake designer shoes worth AED400m ($109m), and as much as AED72m ($20m) worth of counterfeit bags and other leather products.
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