Luxury goods counterfeit and authentication trends

The luxury goods market is experiencing a shift toward mid-range brands that offer premium aesthetics at more accessible price points. However, this market segment faces persistent challenges regarding counterfeit goods.

Authorities, including U.S. Customs and Border Protection, have noted that counterfeit trade often originates from China and Hong Kong and can fund illicit activities. Experts have warned that traditional indicators of authenticity, such as original boxes and receipts, are insufficient for verifying luxury items. Effective authentication requires detailed inspections of engravings, serial numbers, and product integrity.

In response to these threats, new technological solutions are emerging. In South Korea, the startup QUAZAR is developing AI-assisted software that uses smartphone photography to analyze “signature points” like stitching and hardware placement. These efforts aim to improve consumer protection and facilitate the use of Digital Product Passports for enhanced supply-chain transparency.