When Kim received the bag in January, she had her suspicions, because the quality didn’t match her expectations. She ended up purchasing the same style directly from The Row. On placing the two bags side-by-side, they appeared distinctively different in size, shape and material. The product that had arrived from Ssense was also missing a warranty card. Kim was astonished. “This bag is not cheap; it’s about $1,000,” she said in a video shared with her 39,900 followers on Instagram.
Kim did not respond to requests for comment from CNN. On her video alleging that she received a fake product, Ssense commented that it had gotten in touch directly in hopes of resolving the issue. In a statement provided to CNN, Ssense did not comment on whether the bag that Kim received was counterfeit but said: “We are committed to ensuring the authenticity of all products sold. We have measures in place to prevent the sale of counterfeit items.” Ssense added that all returns undergo “thorough examination.”
British retailer Flannels, which sells high-end brands including Versace, Burberry and Moncler, has also been subject to complaints from multiple shoppers, who claim that their purchases, ranging from a Saint Laurent belt to pair of Gucci monogrammed sandals, are counterfeit. (The shoppers did not respond to requests for comment from CNN seeking to verify their purchases.)
Similar complaints have plagued Flannels for years: In 2018, the retailer was accused of selling fake products by disgruntled shoppers who had purchased Moncler items, after the Italian label said that their purchases were not genuine products. When approached by CNN, Flannels declined to comment on the allegations that the products they sold online were fake, and what it was doing to prevent potential fraudulent returns.
Cracks in the system
In a sector where trust and credibility are paramount to success, it’s unlikely that an established department store or multi-brand boutique — which tends to have longstanding relationships with luxury brands — would knowingly sell a counterfeit product.
Yet, as global supply chains increasingly diverge from traditional models, in response to inflationary pressures and geopolitical and economic changes, they’re getting more complex — and more challenging to police. It’s through these avenues that counterfeits may be slipping through, warned Simon Geale, executive vice president of procurement at Proxima, a supply chain firm owned by Bain & Company.
One method that fake products enter the retail system may be through fraudulent returns, in which a customer returns a completely different item while claiming they’re the original product, Geale told CNN over the phone. Processing returns is a complicated and costly process, and it is possible that some stores may not have the infrastructure in place to thoroughly inspect the returned items, he warned. “It’s rare, but the impact is substantial,” Geale said, noting financial loss and reputational damage.