With escalating prices and demand much greater than supply, luxury watches are so much in the public eye. This, in turn, leads to the rising course of the fake watch industry.
The problem with many consumers is that they like to believe; they are all clued up about identifying a fake watch, but we are here to tell you itâs not that simple. According to FH (Federation of the Swiss Watch Industry), fake and counterfeit luxury watches make up around 9% of the items the custom authorities catch and take every year. So, itâs definitely not that simple.
What are the consequences of fake luxury watches so far?
As collectors and connoisseurs invest in luxury timepieces, the shadow of fake products looms large, affecting not only the buyers but also the integrity of the luxury watch industry as a whole. These are some of the repercussions observed:
- Today, the forgers have the skill set, human resources, ability and industrial resources to produce and distribute fake watches globally.
- The increasing market of counterfeit luxury watches has led to the violation of Swiss watch manufacturersâ IP rights, as their designs and ideas are copied. Until 2018, this loss was CHF 7 billion, which in 2016 was CHF 5.3 billion. So, the problem has only worsened with time.
- The economic impact of counterfeit watches has been staggering, leading to significant financial losses for genuine watchmakers. According to various reports, the profits from the fake watches often support other forms of organised crime, including drug smuggling, slavery, etc.
- The social impact of this trade is equally concerning as many counterfeit producers exploit the workers, employing them in poor conditions without fair rights or wages.
- Intricately manufactured fake luxury watches not only dupe customers but also harm brands by losing them direct sales and reputational value in the consumer market.
Therefore, itâs clear that the counterfeit watch industry poses a significant threat to the aficionados who fail to recognise the traits. However, through vigilance and informed buying, you can avoid getting stung.
Here are ten things you need to know about luxury watches to avoid falling into the trap.
10 Must-Know Truths About the Fake Luxury Watch Industry
1. Number of fakes dominates the real
The Swiss watch industry is huge, taking up almost one-third of the entire global watch market. This comes as quite a surprise from an industry that values the rarity and exclusivity of its products. Switzerland produces almost 20 million watches every year, and it comes as no surprise that Rolex tops the chart, producing a million watches annually.
This gives us all the reason to state that Rolex is also the most counterfeited watch brand in the world, followed closely by Omega and Cartier. But whatâs shocking is the level of fakery. The fake watch industry puts out two pieces for every Swiss watch made, totalling 40 million watches per year. This means the number of fake watches is double the number of real ones. Thatâs more than enough to drag a profit of $ 1 billion.
2. Luxury watches are the 5th most faked thing
Despite the huge production numbers, most people donât wear luxury watches, so you would expect them to sit low in the overall priority of things being faked in the world. Interestingly, despite the relatively high cost compared to all other fashion items, luxury watches sit in the top five list of the most faked things in the world, accounting for almost 7% of the products the forgers fake.
It sits alongside leather goods, electrical goods, clothing, and footwear, which make up almost a quarter of the faked goods worldwide, to become the fifth most faked item in the world.
3. Fake watches are extremely convincing
Itâs a widespread belief that only watches that donât look particularly convincing are fake. This leads to a false sense of security that the watch you own is 100% genuine. But the reality is quite different. Forgers are getting good at faking, and this is largely due to the evolution of technology.
This means a fake watch can indeed be very accurate and almost not identifiable by the naked eye or collectors at the time. Today, counterfeiters spend considerable time and effort perfecting the outside of fake luxury watches, making them as close to the original as possible.
4. Fakes are replicating the Manufacturing process
Another long-circulating idea is that the fake watch industry is incapable of improving the accuracy of its production. This is because the Swiss watch industry uses incredibly expensive, high-quality machinery to create the watches, which the fake industry cannot possibly afford.
This is the part that the fake industry has worked really well on over the years. The machinery they use is fake as well. The Swiss watch manufacturers spend a lot of time and money developing these incredible machines and tools and use patents to protect their investment. But to the fakers, the patents mean nothing. They replicate the machinery itself to continually improve their craft.
5. Rolex isnât the only target
Since Rolex is the most popular Swiss watchmaker in the world, it is obvious to think that it is the most faked watch brand. Rolex spends almost $100m annually to market its watches and position itself as the most popular watch brand. The fake industry doesnât need to spend that much cash but simply follow Rolexâs coattails to yield results.
Moreover, this logic isnât confined to Rolex. As the technology used to make fake watches improves, counterfeiters can take advantage of almost any brand without doing the same work. This explains why counterfeit watches often mimic lesser-known Swiss brands, such as Ulysse Nardin and non-Swiss brand like Seiko.
6. Fakes do not spare the Vintage market
Itâs time to get over the misplaced notion that fakes are only limited to the new watches. The vintage watch market is a beast in itself and also a target for fakers. Classic Rolex models like the Paul Newman Daytona or the Double Red Sea-Dweller are replicated in vast quantities, with the forgers putting considerable effort into even the smallest details.
Again, this isnât limited to Rolex. Youâll find fake vintage watches from other brands, such as Breitling, Omega, TAG Heuer, and others. Even discontinued models sit halfway between the vintage and new fiasco.
7. Fakes arenât limited to the innocent buyers
Do you think that fake watches are sold only to unsuspecting victims? Well, there are many people who know exactly what they are getting into. They are the people who seek the most accurate fake watches and pay havoc for them. While cheap labour and minimal work make the fake timepieces much cheaper than the Swiss originals, the most accurate fakes are far from cheap. In fact, buyers pay hundreds and sometimes thousands of pounds for them.
However, the money they spend is all for the outside. The most complex part of a luxury watch is the movement inside, which is hard to replicate and requires skilled labour. The movement of the fake watches is still far off from the originals. Thatâs why the best counterfeit luxury watches have closed case backs.
8. Fakers operate based on real-time feedback
The fake watchmakers use an original example to replicate, but even then, there are small details that arenât right. Surprisingly, there is an entire community of fake watchmakers dedicated to ensuring the fake comes closer to the original in terms of thickness, size of markers, colour shades, etc. And if the fakes differ a small bit, this community will report it immediately.
This means thereâs not just one but many iterations of a fake watch, as the fake watchmakers often reissue the watches according to the list of identified improvements. Also, the fakers donât take years to process the changes; sometimes, they do so within months. Imagine that with multiple factories producing the most accurate fake edition of the watches, you can even have an efficient iterative model.
9. You canât teach yourself to identify a Fake
Put all the information from the net together in the hope that you will be able to avoid a fake. Honestly, it doesnât work that way, and neither is it a foolproof way to ascertain authenticity. Itâs not easy to differentiate the real from the fake, and for watches with closed backs, how do you check the movement?
Of course, you can check the feel and weight of the watch, but would you risk thousands of pounds based on your misplaced confidence? Therefore, the only safe way to ensure your watch is 100% legitimate is to stick to reputed and authorised sellers.
10. The industry has no idea how to handle it
With everything thatâs happening, the industry is at a bit of a loss as to what to do. It cannot stop the production or shipment. Although it can try to stop the import, in many cases, fake watches arrive in the country hidden among other products.
Thereâs no direct way to stop the fake watch industry from booming. Also, with the increasing prices of Swiss luxury watches, it is easy to see why buyers are willing to take the risk of buying a fake.
END NOTE
The market for fake watches is massive and continues to grow. With this in mind, the FHH (Fondation de la Haute Horlogerie) raised a campaign saying, âFake watches are for fake people,â a few years back. The message behind the campaign is to make people think before mindfully or unmindfully purchasing a Swiss watch. The motive is to drive people to identify and verify any Swiss watches before purchasing.
However, despite the campaign, it is difficult for people to verify highly accurate fakes or replicas. By understanding the essential facts mentioned in this guide, you can make informed decisions, protect your investment, and appreciate the craftsmanship of genuine luxury timepieces.
But most importantly, buying luxury watches from authorised sellers is always advisable to avoid getting into a scam.
