The Counterfeit Watch Market and How to Spot a Fake

Since the technological revolution in Asia in the late 1970’s, counterfeiting has become a very profitable and lucrative business. Nearly everything that can be counterfeited, has been. From medication, to electronics, to designer handbags, to toothpaste, to watches. Millions of dollars of counterfeit goods are confiscated each year and an even greater number pass under government and police radar. The counterfeit watch industry alone is valued at several hundred million dollars annually. Swiss customs estimates that 30-40 million counterfeit watches are put into circulation each year compared to 25 million genuine watches. The lure of fast, easy money, driven by the demand for such products, has created an environment where the counterfeit industry can flourish. It may be tempting for consumers to purchase a knock off Rolex or Cartier watch for a fraction of the cost of the real thing; however, there are major drawbacks to owning and purchasing counterfeit watches.

There is little to no quality control in the counterfeit industry; therefore, counterfeit watches vary greatly in quality. A fake Rolex can range in price from $5 to $1,000 dollars. Counterfeiters can make large amounts of profit using cheap materials and labor. Watches that are made extremely cheaply can then be sold for a few hundred dollars at an incredible profit to the manufacturer. The counterfeit industry does not answer to any higher government oversight or regulations. There are little to no health and safety regulations or adherence to labor laws. Because of the generally low quality of these watches, they only last an average of 2-3 years. A fake Rolex that costs almost $1,000, may look almost like the real thing and may seem like a great deal until you realize that the watch will come with no warranties, probably no proof of purchase, and the manufacturer will not stand behind its product. If the watch was to break the day after it was purchased, there would be nothing that could be done.

Because counterfeit watches can vary so greatly in quality, it is not always extremely easy to pick out a fake. Boxes, papers, and serial numbers can all be faked. There are some simple things, however, that can tip you off right away. Follow your instincts. If the deal is too good to be true, it probably is. Even the most cut throat discount dealers rarely mark luxury watch merchandise below 50% of retail. Buying a watch on a street corner or in a an area known for selling counterfeit merchandise is another easy tip off. When possible, always buy from a known and reputable dealer and have your purchase independently authenticated by a third party. Research the make and model of the watch you are looking to purchase. Check that the watch in question has all of the correct features, and none added. Check the fine details such as the clarity of the logo and check that the style of the hands and case back match the model. Most quality luxury watches are made with scratch resistant crystal or sapphire faces. Test the weight of the watch. Materials that fine watches are typically made of such as gold, stainless steel, or titanium, are heavy or have weight to them. If the watch feels suspiciously light it may be a counterfeit.

The counterfeit watch industry has grown into a large and very profitable, yet highly illegal business. And there are major drawbacks to purchasing counterfeit watches. Counterfeit goods infringe on federally registered copyright or trademark laws. Selling or manufacturing counterfeit watches or other goods can lead to heavy fines and jail time. When in the market for a new watch, it is always best to buy genuine. As a consumer, do your research, know the features of the model you are looking to purchase, test the weight, check the fine details, buy from reputable dealers, and whenever possible have the watch verified by a third party.