A factory in Guangdong, China, has been raided by authorities who uncovered a counterfeit operation producing fake handbags worth over one million yuan, prompting broader investigations into the counterfeit network.

Authorities in Guangdong province, China, conducted a raid on a factory in September 2024, unveiling a large-scale operation producing counterfeit handbags valued at one million yuan (approximately S$183,430). This raid uncovered thousands of fake products mimicking the designs of Aupen, a burgeoning fashion brand that has garnered significant attention after American pop star Taylor Swift was seen with its black Nirvana bag in October 2023.

The factory, which employed over 2,000 workers, was found to be at the center of this counterfeit ring. The operation was confirmed through months of undercover surveillance initiated by Aupen’s Singaporean founder, Mr. Tan, who had expressed concerns about the potential infringement on his brand’s intellectual property. Following the raid, nine individuals, including key figures within the operation and a factory foreman, were arrested. Authorities have since launched an investigation to uncover the broader counterfeit network, which appears to extend beyond this single facility.

In a conversation with The Straits Times from Milan, Italy, Mr. Tan emphasized the significance of protecting intellectual property for emerging brands. He cites Taylor Swift’s past conflicts over her music rights as a pivotal moment in understanding the necessity for ownership in creative industries. Swift’s highly publicized struggle over her master recordings highlighted issues of control in creative ownership—an important lesson that reinforced Mr. Tan’s resolve to secure design and trademark protections for each Aupen product before its market launch, which began in November 2022.

Despite the challenges posed by high costs and initial setbacks, including a rejected application for financial support from the local government agency Enterprise Singapore, Mr. Tan persisted in obtaining the necessary protections. He sought advice from industry professionals and eventually succeeded in safeguarding Aupen’s creations.

In July 2024, Mr. Tan’s concerns were validated when a staff member discovered counterfeit Aupen bags for sale on the Chinese e-commerce platform Alibaba. These counterfeits closely mimicked the originals, even featuring details like the Aupen-engraved Lumiere charm. Alarmingly, the fakes were listed at prices comparable to Aupen’s authentic offerings, which range from S$457 to S$654. Mr. Tan expressed concern for customers who might unknowingly purchase counterfeit items, stating, “When I saw that, I felt sorry for the customers who unknowingly bought them.”

Mr. Tan has clarified that Aupen products can only be purchased through their official website, stating, “We don’t sell through third-party department stores or any other website. So, if anyone sees an Aupen bag listed elsewhere, it’s a counterfeit.”

With substantial evidence against the counterfeiters, Aupen collaborated with Chinese law enforcement to address the counterfeit issue effectively. The brand provided authorities with detailed documentation, including images that showcased the differences between the counterfeit items and their genuine counterparts, leading to the factory raid.

In addition to tackling counterfeiting, Aupen continues to expand its product lines. Notably, the brand launched its first collection of jewellery in February 2024, featuring the Sinner Earrings, which draw inspiration from the surrealist designs of Italian fashion house Maison Schiaparelli. Retailing for US$790 (S$1,050), these earrings sold out quickly on Aupen’s website.

Mr. Tan advises emerging designers that while creative pursuits are important, a solid understanding of business and legal protections is crucial in today’s fashion landscape. “Many creatives want to focus on the vision, product and design process, but that’s not realistic in today’s climate,” he cautioned. “You need to understand business, legal protection and strategy to grow and last.”

Source: Noah Wire Services