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

The Rise of Influencer-Promoted Counterfeit Goods from China

The Allure of Cheap, Fake Products

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. Eben Fox, a sneaker influencer known as Cedaz, recently promoted Pandabuy, an ecommerce website that offers a wide range of products at unbelievably low prices. However, there’s a catch: most of these items appear to be counterfeit.

Influencers as the Face of the Counterfeiting Economy

Social media influencers are increasingly promoting illegal knockoffs imported from China on platforms like 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 products. In return for promoting these platforms, influencers receive a commission on each sale.

Legal Consequences and Platform Responses

In December, Nike sued Eben Fox, accusing him of collaborating with Pandabuy to market counterfeit versions of its shoes. Fox’s lawyer, Joe Southern, states that while Fox disagrees with the allegations, he is working to resolve the case. Pandabuy, when questioned by The Zero Byte, directed inquiries to a customer service agent named Yaya, who claimed the company lacks the expertise to authenticate the products it lists.

“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 who shares Pandabuy links says in a TikTok video.

TikTok‘s advertising rules and community guidelines prohibit the promotion of counterfeits. The company claims to have suspended the accounts of several influencers after The Zero Byte brought them to its attention.

The Scope of the Counterfeiting Problem

Daniel Shapiro, senior vice president of strategic partnerships at Red Points, a firm that helps brands detect counterfeits, notes that almost any item can now be quickly copied, and smaller companies are increasingly seeing their designs get ripped off. These fakes are not merely “dupes” that resemble another product but have their own branding; they are carefully crafted clones termed “replicas” that infringe upon other companies’ registered trademarks and intellectual property.

According to a study co-authored by the European Union Intellectual Property Office and the Organization for Economic Cooperation and Development, counterfeit and pirated goods account for an estimated 2.5 percent of global trade annually. A survey of shoppers in 17 countries last year found that 68 percent of people who bought a knockoff on social media did so on Facebook.

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

The Counterfeit Sneaker Scheme

Imagine a pair of counterfeit Nike Air Jordans, typically retailing for over $200, being promoted by an influencer on Instagram. When a particular shoe gains popularity on social media, the influencer searches for knockoffs on Chinese e-commerce marketplaces like AliExpress, which offer a gateway to the vibrant world of Chinese online shopping. These marketplaces, usually only accessible to Chinese consumers, are known for their eclectic catalogs and affordable prices.

Influencers scour these marketplaces for high-quality counterfeits, such as a $50 pair of fake Air Jordans that even a sneaker connoisseur might struggle to identify as fake. Once they find a winner, the influencer shares the listing using their unique affiliate link. Many create detailed spreadsheets of their favorite finds, organized by brand, style, and color. Each time a follower clicks and purchases the item, the influencer earns a commission from the marketplace.

The Affiliate Marketing Boom

In 2022, AliExpress reported that over 20,000 influencers joined its affiliate marketing program, thanking them for their “dedicated efforts” in promoting their products. While this number pales in comparison to Amazon’s affiliate program, which boasts nearly a million members, it’s important to note that dealing in counterfeits is illegal.

When a follower clicks an influencer’s affiliate link and purchases the replica Air Jordans on AliExpress, the company procures them from the original seller. Once AliExpress receives the shoes at its warehouses in China, it photographs them and sends the images to the customer for approval. If satisfied, AliExpress ships the counterfeits overseas to the buyer; if not, the order can be returned or exchanged. Customers can even specify their preferred shipping carrier and whether they want the packaging and “designer” tags included.

Navigating the Counterfeit Landscape

Influencers guide their followers through the entire process, including how to properly declare packages to avoid seizure by customs officials. Many recommend discarding shoe boxes to reduce shipping weight and costs. They even educate followers about Chinese holidays that may cause unexpected delays. As one influencer explains in a TikTok video, “You have to remember, we’re going by Chinese standards. We go by their calendar.”

“The process is rather simple. We order what the customer required from the seller,” says Yaya, a customer service representative for AliExpress.

The Established Players

For shoppers who find using a shipping agent too complex, DHgate, a 20-year-old e-commerce marketplace, is one of the most established purveyors of counterfeits from China. Unlike AliExpress, it caters directly to international customers. Its name comes from the Chinese city of Dunhuang, once a key stop on the ancient Silk Road.

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

The Evolving Tactics

Counterfeit merchants also sometimes secure prime placement on Google‘s search engine. A recent search for “Chanel bag” returned a website selling a $95 replica handbag as the top result. The site disguised itself as a small business that manufactures scented candles, a tactic becoming increasingly common among counterfeit sellers.

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

Google says it removed the site and other counterfeit sellers from its search results after being alerted to them. “We prohibit the sale or promotion of counterfeit goods on both our Shopping and Ads platforms,” states Molly Shaheen, a Google spokesperson. “We regularly remove product listings and take action against merchants when they violate the trademark rights of brands.”

As the counterfeit market continues to evolve, tech platforms face an ongoing battle to identify and remove these sellers. While Chinese courts have begun handling more intellectual property cases in recent years, the fight against counterfeiting remains a complex global issue.

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.”