Both rich and poor buy more counterfeit goods than the middle class

Compared with middle-income households, both lower-income and higher-income consumers purchased more counterfeit products, bought them more frequently and showed stronger interest in premium counterfeit offerings. 

“Our findings challenge the common assumption that counterfeit purchasing is primarily a budget-driven phenomenon,” says Chen. “Instead, demand appears to be strongest at both ends of the income spectrum – suggesting that social, psychological and status-related motivations play an important role.” 

Differences between consumer groups 

The study found important differences between the two groups. Lower-income consumers were more likely to purchase counterfeit versions of lower-tier luxury brands. Higher-income consumers, meanwhile, gravitated toward counterfeit versions of ultra-luxury brands such as Hermès and Chanel. 

Perhaps most surprisingly, wealthier consumers were also more likely to purchase higher-priced counterfeit listings, suggesting a greater willingness to pay for higher-quality replicas rather than simply seeking the lowest-cost option. 

The researchers also found that demand was strongest for counterfeit versions of iconic luxury products with broad brand recognition. Classic product lines such as the Hermès Birkin bag and Chanel Classic Flap generated stronger demand than newer or less recognisable collections. 

Niche counterfeit products 

Another unexpected finding involved product popularity. The income-related demand pattern was even more pronounced for niche counterfeit products than for widely purchased items. This suggests that some consumers may be motivated by the appeal of discovering products that feel distinctive or exclusive. 

The findings carry implications for policymakers, intellectual property owners and luxury brands. Anti-counterfeiting efforts often focus on price-sensitive consumers, but the study suggests that counterfeit demand exists across very different income groups and may be driven by multiple motivations. 

“For brand owners and enforcement agencies, understanding who buys counterfeits, and why they do, is essential,” says Xiang. “Strategies designed around a single consumer profile may overlook substantial counterfeit demand among both affluent and economically constrained consumers.” 

Read the study in full here.