Japan’s vibrant secondhand market, known for quality and authenticity, lures tourists seeking vintage designer items, while evolving counterfeit tactics challenge the landscape.
Japan’s vibrant luxury resale market has become a focal point for foreign tourists, drawing them not only for the cultural experiences, such as enjoying sushi and visiting ancient temples, but also for the opportunity to shop for vintage designer goods. This trend has particularly flourished in hotspots like Tokyo’s Omotesando neighborhood, where travelers immerse themselves in a treasure hunt for well-preserved items from renowned brands like Hermes, Chanel, and Louis Vuitton.
Tourists often prioritize the search for items at prices significantly lower than retail. For instance, Sydney Wang, a Californian honeymooner, expressed to The Japan Times her excitement about finding a Hermes Kelly bag—a coveted piece that typically retails for around $10,000—in Tokyo. “Aside from exploring, part of the itinerary is finding a really great deal on a Hermes Kelly,” Wang remarked while shopping in February. She highlighted the allure of owning her dream bag at a fraction of the typical cost.
Japan’s secondhand market has garnered a reputation for being one of the most reliable globally, attributed to its kaitori, or buy-back resale system. This approach ensures that items sold in secondhand stores are meticulously authenticated before resale. Professionals examine various aspects, including leather quality, stitching, and hardware, while serial numbers and hidden security features are verified using ultraviolet light.
Despite its strict regulations and reputation, Japan is not completely immune to counterfeit goods. The sophistication of counterfeit production has evolved significantly, as noted by Vidyuth Srinivasan, CEO of Entrupy, a New York-based company specializing in authenticity verification. Speaking to The Japan Times, he stated, “The finishing quality (of counterfeits) has improved massively,” highlighting that past indicators of fakes—such as poor stitching or incorrect logos—are no longer reliable.
This rise in counterfeit sophistication is linked to a global network where goods are produced in one country, often China, and sold in another, complicating the landscape for authenticity. Srinivasan elaborated that counterfeits could originate from various locations, making it challenging to pinpoint their source.
The luxury secondhand market in Asia, estimated to generate $4.7 billion in revenue this year, is projected to grow to $5.84 billion by 2028. Japan is anticipated to benefit from this growth due to its strong reputation for quality and authenticity. However, the market’s reliability is not without flaws. Operating a kaitori in Osaka, Marvi Buico shared that counterfeit items still attempt to infiltrate the market, although he emphasized the role of technology in prevention. “We’ve had an instance when someone tried to sell us a fake Chanel double flap bag,” Buico commented, noting that AI systems can help identify such fakes before completion of transactions.
While larger resale operations may have access to advanced authentication technologies, smaller resellers without training or resources face heightened risks of unknowingly selling counterfeit items. The potential for individual buyers to later resell counterfeit items further complicates the authenticity landscape.
As counterfeiters adapt and enhance their tactics, so do the technologies designed for detection. Entrupy employs AI-driven methods, using microscopic analysis to uncover details that humans might overlook. However, Srinivasan acknowledged that no system is infallible, with his company’s technology built to improve from errors. “It fails regularly—maybe once or twice a month,” he said, indicating that each misidentification serves as an opportunity for refinement.
Entrupy stands by its authentication claims with a guarantee, pledging to cover losses incurred by resellers if a counterfeit is incorrectly verified as authentic. The potential for significant financial repercussions from misidentified items underscores the high stakes involved in the luxury resale market.
As tourists flock to Japan for the thrill of discovering vintage luxury goods, the complexity introduced by counterfeit operations continues to pose challenges for both businesses and shoppers, keeping the dialogue around authenticity and quality at the forefront of the shopping experience.
Source: Noah Wire Services
