While casually browsing YouTube earlier today, a video popped up on my feed. It was a behind-the-scenes look at a factory named Flight Kickz, where they were manufacturing their version of the Air Jordan 11 “Gratitude” aka DMP.
These are Chinese bootleggers, openly showing consumers how they craft their knockoffs in their own factories. Their audacity is astounding as they involve the customer in every step of the process, from stitching the upper and midsole fabric together to molding the heel counter, even using steam to soften the upper. They utilize high-end, sophisticated machinery for their operations, making it all the more impressive. I’ve been talking about this for almost a decade now and counterfeiters at this point have perfected their craft, and are making it a point to let the whole world know about it.
Unlike Nike, these companies engage consumers by showcasing their production process. Nike typically designs a shoe, manufactures it, and then releases a press statement about it. These bootleg companies, however, take the time to display their craftsmanship and the advanced machinery used to create these replicas. And they do it fearlessly, almost daring Nike to do something about it.
Their sheer audacity is jaw-dropping. They’re creating counterfeit products and have no qualms about broadcasting their operations worldwide. It seems as if Nike’s hands are tied, and they can’t do anything to stop them. Perhaps it’s because Nike also outsources their production overseas, and any attempt to disrupt these operations could lead to complications.
This is Certainly Disrupting The Resale Industry
This situation is seriously disrupting an already struggling resale industry. It’s inevitable that the upcoming Jordan 11 DMPs will sell out, that’s a given, but resellers who won’t make any profit from it. The retail price is already high at $230 plus tax, and the shoes are going to be mass-produced, resulting in an oversaturated market.
Consumers are willing to buy these replicas because they witness their production process and can vouch for the quality. It’s getting harder and harder to distinguish between authentic and counterfeit shoes, boiling down to minute details that most consumers don’t care about. They opt for the replicas because they’re readily available and more affordable.
The audacity of this replica industry is staggering. It’s as if they’re challenging Nike by flaunting their counterfeit production, confident that Nike won’t take any action. This could signal the beginning of the end for the hyped sneaker resale market, as these factories can replicate any shoe and potentially improve upon it at an exponential speed.
In a way, it’s reminiscent of how StockX disrupted the market by leveling the playing field, allowing anyone to sell sneakers without needing extensive knowledge about them. Now, the counterfeit industry is causing a similar disruption, leaving an indelible mark on the market. Despite what some may say about it being just a small portion of the market, its impact is undeniable. Their unlimited stock is bound to cause significant damage.
Even if you miss out on the retail release, these replicas offer a budget-friendly alternative with almost flawless quality. We’re in for quite a spectacle, and I can’t wait to see Nike’s response. Will they attempt to remove this video? Will they pursue legal action against these companies, much like they did with Air Kiy
But remember, Air Kiy was American and the lawsuit took place within the US. And apparently the lawsuit was settled and as per the settlement, all of Kiy’s counterclaims against Nike were dismissed, an indication that Nike emerged victorious but somehow Air kiy ‘s website is still very well operational, which raises all types of speculations.
The leniency of the outcome, which may seem like a mere slap on the wrist given the gravity of the allegations, might have broader implications. Specifically, it could potentially embolden counterfeiters based outside of the United States, where copyright laws might be less stringent. This could be perceived as a tacit approval for such activities, and the ramifications are already becoming evident. As I was writing this post, I looked further on Youtube and there are a growing number of videos similar to the one that Flight kickz shared on the platform and mind you they haven’t been flagged or taken down by Youtube, go figure.
An Increasing Number of Individuals are Turning to Replicas
The counterfeit sneaker market has seen a significant surge, posing serious consequences for both the resale and retail markets. In 2019, the U.S. Customs and Border Protection (CBP) seized over $2.2 million worth of fake Nike shoes. The following year saw an even more substantial haul, with $32 million in counterfeit Jordan sneakers and other goods intercepted.
The production and distribution of these counterfeits on such a vast scale suggest a thriving market for these fakes, driven by their increasing popularity. Evidence of this trend can be found in the growth of online communities dedicated to discussing and sourcing the best counterfeit sneakers. For instance, the Reddit group sneakersresp boasts over 826,000 members.
While the group maintains strict rules against selling replicas as retail products, members are implicitly permitted to purchase them at their own discretion. This level of engagement shows a significant consumer interest in the counterfeit market.
If you’re a consumer, you might be rethinking your loyalty to brands like Nike. Perhaps you’re tired of seeing everyone wearing Jordan sneakers. Maybe now’s the time to diversify your style and explore other brands beyond the typical Jordan 1s or 11s.
This shift towards replicas could indeed stir up a perfect storm for alternative brands. While Nike will undoubtedly remain a popular choice for the masses, its uniqueness is increasingly being eroded. Given consumer vanity and the constant pursuit of individuality, it wouldn’t be surprising to see a shift in loyalties soon. As more people start exploring options beyond Nike, there lies a golden opportunity for other brands. They need to closely monitor this trend, drive innovation, and seize this chance to captivate these transient consumers.
I’m excited about what’s to come and how this will unfold.
