The Nanfang / Blog


Fake Hermes factory busted, ring leader given life in prison

Posted: 08/30/2012 7:00 am

Even though China is slowly making the transition from specializing in cheap knock-off products to producing its own high-level brands, “made in China” is still synonymous with shoddy goods.

A few days ago, according to Yangcheng Evening News, a gang making fake Hermes totaling over RMB100 million was busted and the court sentenced its leader to life in prison on August 6. Other members were given sentences ranging from seven to ten years and some received fines.

An investigation found the leader of the gang, Xiao, rented a 500 square meter room in a factory in Heyuan last year and ran his counterfeiting business there. Xiao bought the tools and raw materials for bags from Dongguan and Guangzhou. The fake Hermes were sold in Guangzhou.

Xiao has been targeted since February this year when he was first caught by Heyuan’s Administration of Industry and Commerce. After that, the case was transferred to the local public security organs on file. However, driven by huge profits, Xiao continued his counterfeiting activities and rented another 350 square meters of factory space after the first was closed down.

Xiao and his fellow gang members refused to comment on whether they would appeal the sentence.

Guangdong, a thriving manufacturing hub where many manufacturers and exporters are located, has had regular problems with fake and counterfeit goods flooding the market. These goods are known in Chinese as shanzhai. Phones, especially iPhones and iPads, and other shanzhai brands such as Louis Vuitton, Dior and Swatch have proved popular.

The good news is for global brands, however, is Guangdong’s is making progress on cracking down on fake goods. ┬áRelated news reports indicate nearly 20,000 similar cases have been busted and 2,950 dens destroyed.

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