High-End Fashion Dupes Are Soaring Where Knock-Offs Never Could

“They are the architects of their own problems,” continues Sherwood. “By making so much of their products not about the tangible product, but about the intangible aspects of the brands – those sexy ads, the celebs who carry your products, the stores, the glossy ads, the slogans, the heritage backstory, all that stuff that isn’t actually the product itself.”

In turn they’ve created an enormous gap between what consumers are actually paying for and the real value of the product. As these companies have increasingly pursued the ultra-wealthy, they’ve left a gap in the market that other brands, eager to capitalise, are starting to fill. “They know that the prices at the very top of luxury are too high to reflect the actual value,” Sherwood says. “But have turned these notable silhouettes and styles into desirable items that a dupe brand can free ride off of.”

Then, recently, the veneer began to crack even further. In March, Italian luxury brand Loro Piana became embroiled in scandal after an investigation revealed the material behind their $9,000 sweaters was sourced by low-paid workers in Peru. Just a few months later, in July, Italian prosecutors alleged sweatshop-like conditions in factories supplying certain products for high-end labels such as Dior and Armani. The revelations triggered outrage among consumers, many of whom had long trusted these brands to uphold the highest standards of craftsmanship and ethics.

Across online forums like the r/handbag subreddit, once-loyal customers voiced their disillusionment. For many, these scandals revealed that the luxury brands they idolised were not living up to their promises. Both Loro Piana and Dior have denied the allegations. However, The Business of Fashion revealed that Milan’s public prosecutor said in a court document that they had found “an illegal practice so entrenched and proven [that it could] be considered part of a broader business policy exclusively aimed at increasing profit.” Neither company has been charged in relation to the probe.

Such reputational damage couldn’t have come at a worse time for luxury brands. Coupled with the rise of dupe culture, these scandals are forcing consumers to rethink their relationship with high-end goods. If craftsmanship is no longer exceptional, and ethical practices are called into question, what exactly are people paying for when they buy luxury?

Rebuilding the Dream

Recent sales figures underline just how far demand for luxury mega-brands has fallen from its post-pandemic highs. In July, some of the industry’s biggest players reported disappointing revenues for the second consecutive quarter. LVMH, the world’s leading luxury conglomerate, missed sales estimates, while Gucci’s parent company Kering, experienced a decline of 11%. Other major brands like Richemont and Burberry also reported disappointing figures, with first-quarter sales plummeting by a staggering 20%.

At the heart of luxury’s current struggles is the erosion of the very dream that once propelled the industry. The disconnect between the marketing mythology and the reality of production has left consumers feeling disillusioned, meaning the days of blindly paying a premium for a logo may be at risk.

The democratisation of information and consumer power through social media has played a huge part in this. Platforms like TikTok and Reddit are filled with conversations that challenge the industry’s value proposition, which has made it so much harder for luxury brands to control their narrative.

To regain their position, Brittany Steiger, principal analyst of retail & eCommerce at Mintel says they will need to focus on what once made them so desirable—authenticity, superior craftsmanship, and a narrative of prestige that feels both aspirational and attainable. Some experts suggest that embracing more transparent practices and truly living up to their ethical and quality promises could also be the way forward. Brands that fail to do so, may find themselves increasingly irrelevant in a world where high-quality dupes continue to gain ground.

It’s clear that the old model of luxury has been disrupted, and it’s no longer just about price anymore. In the battle between heritage and value, consumers are asking more questions—and luxury brands must have better answers. And if they don’t, there’s a whole industry on the sidelines who do.