Inside Look: Hong Kong's Counterfeit Watch Trade

Inside Look: Hong Kong’s Counterfeit Watch Trade

 I’ve recently found myself working in China for 2 months; just a stones throw away from Hong Kong, so, as anyone would, I hopped over to the famous metropolis to spend a few days looking around and maybe at a watch or two.   

 

Counterfeit goods have been always been around, imitations, copies, call it what you like - they’re fakes. But one place has always been the place to go for knock off watches and that’s Hong Kong.  I arrived at night by ferry and immediately felt in awe of huge multi-coloured buildings, as well as the plethora of watch shops, largely dominated by Rolex, with the odd Omega and Patek Philippe thrown in for good measure. Hong Kong is a watch enthusiast’s playground.  

I’m not sure whether this is a common occurrence, but as soon as the words Hong Kong left my lips the talk of counterfeit watches almost always followed with whoever I spoke with.  I can see what the attraction is, however, that doesn’t mean I understand it; of course it would be nice to walk around with a Patek on my wrist that to the average person looked legitimate. But I wouldn’t just feel like a cheat, I would be a cheat. Perhaps it’s my personal appreciation that makes me admire more than just the aesthetics of the watch but also the history, craftsmanship, movement, etc.

To my surprise it wasn’t long before I was approached on the street, only a few doors down from the legitimate shops being offered counterfeits, not great counterfeits from the looks of them, but counterfeits none the less. I thought (perhaps naively), that this sort of thing was reserved for the night markets and densely filled backstreet stalls, away from authoritative eyes - obviously I was wrong.  At the time, I thought nothing of it, but upon reflection back it seems odd that the sellers are given such freedom on the streets to boldly approach people, in search of a sale (99% of whom aren’t even looking for a watch).  It didn’t seem like the secret I expected it to be, a secret that everyone was aware of but knew not to talk about, instead, it was made blatantly clear in broad daylight. 

According to swissinfo.ch an estimated 5-10% of all world trade is made up of counterfeit goods, in addition, during 2010, 88% of all counterfeit goods seized within the EU originally came from either China or Hong Kong,  swissinfo.ch go on to say: 

For the Organisation for Economic Co-operation and Development, the volume of exchanges of counterfeit consumer products is more than the GDP of 150 countries, with a total world value of $250 billion in 2007.

As well as this, data published by the EU claim that watches are the third most commonly counterfeited products, making up a total of 11%. It's hardly surprising when an estimated 15-30% of all internet watch related searches are of people looking for replicas. However, the Swiss Watch Industry Federation (FHS) claim that in 2013, one million fake watches were also seized and destroyed.

I’ve heard the stories first-hand of people being approached in the street, shown a catalogue of watches varying in price and quality before being taken through back alleys to buildings used solely as a kind of showroom for the watches. Possibly the most extreme story I’ve heard of this was about a couple of prospective buyers who were taken to the top floor of an apartment block, only to find another floor had been illegally built on top of the building just to accommodate the counterfeit watches.

What is possibly the most worrying fact is the technical sophistication some of these watches show, apart from a few microscopic details many of the counterfeit watches being produced are hard to distinguish initially, it’s only until you delve into the heart of the watch some of the differences become apparent. Gone are the days of merely spotting poorly aligned dials or inexpensive materials. Some reports suggest that watches are now bought by high profile buyers within weeks of their release, taken to Hong Kong to be laser scanned through CNC machines to produce and exact copy. 

 

Take the Hublot Big Bang, for example - a precision made, incredibly complex tourbillon watch. Over the past year and a half to 2 years complicated watches such as this have begun to be produced in Hong Kong, similar weight, aesthetics and this particular model even comes with a vanilla scented strap true to the authentic. 

It seems the counterfeit market has started targeting the ultra high end watch market and, as a result, has started causing whispers within the Swiss watch communities that this is the result of increased prices as well as the limited supply. It is also thought that due to the reduced international sales network, it has made it a necessity for jewellery shops to stock second hand watches.  During a talk with swissinfo.ch, head of the anti-counterfeiting unit of the Federation of the Swiss Watch Industry, Chris Arnoux, was quoted in saying:

This parallel market, which is perfectly legal in the EU and the USA, has been a real magnet for the counterfeiters. 

It is claimed that in China and Hong Kong a team of 50 inspectors has been created in an attempt reduce the increased threat, though I somehow doubt the effectiveness of this team after having fake Rolex after fake Rolex dangled before my eyes on every street corner.

Regardless of this counterfeit industry, to me, a watch is much more than just an aesthetic accessory, more than a physical creation - a real watch has soul and character making it a lifelong companion, something these lifeless copies will never be.