Trade in fakes takes shine off luxury goods market

Apr 11, 2007, 14:07 GMT

Basel, Switzerland - Counterfeit goods posed the biggest threat so far to luxury goods makers, organisers said Wednesday at Baselworld, the international showcase for expensive and top brands held every year in Switzerland.

Fake luxury watches now represented 10 per cent of the total international trade, worth an estimated 800 million swiss francs (655 million US dollars) to counterfeiters last year alone, said Jacques Duchene, President of the Exhibitor's Committee.

He was speaking at the official opening, the day before the trade fair throws open its doors to the public. Swiss Watch makers had 'never had it so good, expecially the prestigious brands,' he said.

Swiss companies saw another record year with exports up 10 per cent in 2006 on the previous year rising to 13.7 billion swiss francs (11 billion US dollars).

However, even with strong demand, many companies were faced with making employees redundant due to counterfeiting. There were 40 million counterfeit Swiss products compared to 25 million genuine watches.

He said: 'The statistics speak for themselves, the situation is becoming really dangerous.' He added: 'Counterfeits are increasingly a matter for the specialists, the days of cheap imitations are over.

'The technical skill of the counterfeiters has considerably increased. We are faced with products that are becoming more and more difficult to detect.'

Baselworld is seen as the most important show for the watch and jewellery industry. More than 2,000 exhibitors from 45 countries are due to unveil their latest products and ranges.

The show, which runs from April 12 to April 19 is expected to attract around 90,000 industry professionals to Basel.