A recent study from City, University of London looks at whether income inequality affects people’s decision to buy counterfeit luxury goods and how perceptions influence this choice.
In 2020, the $1.8 trillion counterfeit luxury market grew due to consumer demand and views on income inequality. Counterfeits make luxury items feel more accessible, appealing to those who can’t afford the authentic items. The study explores whether perceived inequality makes counterfeit goods more appealing, especially for those who value equality, and includes five different studies to test this.
The research confirms that counterfeit luxury goods seem more attractive due to perceived inequality, regardless of a person’s income. Studies in Sweden and the US found that perceptions of inequality make counterfeit Rolex watches and Louis Vuitton scarves appear more valuable.
It also found that counterfeit luxury items offer a unique sense of fairness compared to non-luxury items. While perceived inequality increased the appeal and purchase intentions for counterfeit luxury handbags, it didn’t affect non-luxury items in the same way. People were also more likely to buy cheaper items when feeling inequality, but this wasn’t tied to a sense of fairness. The real appeal of counterfeit luxury items is their access to exclusive brands.
The study links income inequality to the attractiveness of counterfeit luxury goods through their perceived egalitarian value, independent of price or income.
The researchers behind the study said that future research should explore the balance between egalitarian and status motives, the impact of inequality trends, and the psychological reasons behind the perceived egalitarian value.
To read the full study, click here.