Designer Knockoff Influencers: The Shady World of Sponsored Fakes from China

The Rise of Influencer-Promoted Counterfeit Goods from China

The Allure of Cheap Knockoffs

In a world where designer brands often come with hefty price tags, the idea of obtaining coveted items for a fraction of the cost can be incredibly tempting. This is precisely the message that sneaker influencer Eben Fox, known as Cedaz, conveyed to his 120,000 TikTok followers when promoting the ecommerce website Pandabuy.

“Everything is so cheap that you’re going to get instantly addicted,” said Fox. “Imagine every single shoe or every single piece of clothing that you could never get because it’s so expensive is now obtainable for like 20 to 50 bucks.”

However, there’s a catch: most of the items on Pandabuy appear to be counterfeit.

Influencers Fueling the Counterfeit Economy

A growing number of social media influencers are cashing in on the promotion of illegal knockoffs imported from China across various platforms, including Facebook, TikTok, Discord, and Reddit. These influencers serve as the public face of a sophisticated counterfeiting economy that connects Western buyers to Chinese sites like Pandabuy, which act as intermediaries for marketplaces filled with fake goods typically sold only within China. In return for promoting these platforms, influencers receive a commission on each sale.

“I’m talking any brand, any designer brand that you might like and you think their shit is too expensive, then just buy it from here,” one influencer shares in a TikTok video while promoting Pandabuy links.

The Scope of Counterfeit Goods

The range of counterfeit items promoted by these influencers is vast, encompassing everything from fake Chanel badminton sets and Skims dresses to knockoff Stanley cups and even bootleg copies of self-help books. Some creators go as far as offering “vintage” fake Chanel bags with intentional water stains to create an aged appearance, while others, like Eben Fox, have even promoted counterfeit Ferrari car keys as a way to impress someone on a first date.

Platforms Struggle to Combat Counterfeits

Despite having advertising rules and community guidelines that prohibit the promotion of counterfeits, platforms like TikTok face challenges in combating this growing issue. TikTok spokesperson Mahsau Cullinane stated that the company suspended the accounts of several influencers after being alerted to their activities, emphasizing their continuous efforts to enforce strict rules against counterfeit products and invest in detection and reporting mechanisms.

The Pervasiveness of Counterfeits in Global Trade

According to Daniel Shapiro, senior vice president of strategic partnerships at Red Points, a firm that helps brands detect online counterfeits, almost any item can now be quickly copied, with smaller companies increasingly falling victim to design infringement. These fakes, termed “replicas,” are carefully crafted clones that infringe upon companies’ registered trademarks and intellectual property, differing from “dupes” that merely resemble another product but have their own branding.

Counterfeit and pirated goods account for an estimated 2.5 percent of global trade annually, as reported in a study co-authored by the European Union Intellectual Property Office and the Organization for Economic Cooperation and Development. Facebook and Instagram are among the most popular channels for purchasing fakes, with a survey revealing that 68 percent of people who bought a knockoff on social media did so on Facebook.

As Chinese sites, aided by influencers, continue to grow rapidly, the counterfeit economy poses an increasingly complex challenge for tech platforms and brands alike.

The Rise of Counterfeit Influencers: How Social Media is Fueling the Fake Goods Market

The Counterfeit Sneaker Scheme

Imagine a pair of designer sneakers, like Rick Owens high tops, which typically cost over $1,000. When an influencer spots a viral trend featuring these shoes on social media platforms like TikTok, they turn to Chinese e-commerce marketplaces to find knockoffs. Shipping agent services, such as Pandabuy, act as a gateway to these marketplaces, translating product listings and offering them to international audiences. In January alone, Pandabuy’s website received more than 17 million visits.

Influencers scour these listings for high-quality counterfeits, such as a $73 pair of fake Rick Owens sneakers that even experts might struggle to identify as fake. They then share the listing using their unique affiliate link, often creating detailed spreadsheets organized by product category, brand, and color. When a follower clicks the link and makes a purchase, the influencer earns a commission from the agent service.

The Counterfeit Supply Chain

When a customer buys the replica sneakers through an influencer’s affiliate link, Pandabuy purchases them from the original Taobao listing. The counterfeits are then sent to Pandabuy’s warehouses in China, where photos are taken and sent to the customer for approval. If satisfied, Pandabuy ships the goods overseas to the buyer, allowing them to choose their preferred shipping carrier and specify whether they want the packaging and designer tags included.

Influencers guide their followers through the entire process, offering tips on how to declare packages to avoid seizure by customs officials and even advising on potential shipping delays due to Chinese holidays. As one influencer notes in a TikTok video:

You have to remember, we’re going by Chinese standards. We go by their calendar.

Pandabuy maintains that it is merely a middleman and not responsible for what customers choose to purchase from Chinese marketplaces. Yaya, a Pandabuy customer service representative, explains:

The process is rather simple. We order what the customer required from the seller.

Established Counterfeit Marketplaces

For those who find using a shipping agent too complex, DHgate, a 20-year-old e-commerce marketplace, offers a more direct approach to purchasing counterfeits from China. Named after the ancient Silk Road city of Dunhuang, DHgate caters specifically to international customers, shipping orders directly to their doorsteps.

In 2020, DHgate launched its own affiliate marketing program, leading to an increase in influencers promoting counterfeit products on platforms like TikTok and Facebook. To avoid content removal, influencers often refer to DHgate as “the little yellow app,” a nod to the company’s logo color.

The Counterfeit Arms Race

Despite efforts by tech platforms to crack down on counterfeits, sellers continue to find new ways to evade detection. Some counterfeit merchants even manage to secure prime placement on Google search results by disguising themselves as legitimate small businesses. As Rob Shapiro, CEO of the brand protection firm Red Points, notes:

When you click on it on your desktop, it’s a benign website for silk flowers or plants. You click on that same URL on your mobile device and you go to a website full of counterfeits.

Google maintains that it regularly removes product listings and takes action against merchants who violate trademark rights, but the battle against counterfeiters remains an ongoing challenge for tech platforms and luxury brands alike.

The Rise of Counterfeit Sneaker Influencers

The Allure of Replica Sneakers

In the world of sneaker enthusiasts, the desire for rare and expensive kicks has given rise to a thriving market for counterfeit shoes. While China’s courts have seen a significantly more intellectual property cases in recent years, most small- and medium-size knockoff dealers are unlikely to ever be caught. The influencers living in the United States, however, do face potential legal risks.

Nike’s Lawsuit Against a Sneaker Influencer

Nike has taken legal action against a prominent sneaker influencer, accusing him of being the mastermind behind an organized counterfeit trafficking ring. In court documents, Nike alleged that the influencer, known as Fox, was

“the ringleader of an organized counterfeit trafficking community.”

Fox, however, denied many of the claims in a filing earlier this month. He did, however, admit to creating a YouTube video in which he told his followers,

“I’m here to help you little boy get your stuff from China to your doorstep right now.”