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Counterfeit-Luxury-Goods-Pose-Challenges-in-Japan's-Resale-Market

Counterfeit Luxury Goods Pose Challenges in Japan’s Resale Market

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Counterfeit Luxury Goods Pose Challenges in Japan’s Resale Market

by Giezel Garcia
03/01/2025
in Fraud & Scams, Security & Risk

Japan’s luxury goods market remains strong, and its secondhand resale sector continues to attract tourists seeking high-quality designer items at competitive prices. However, ensuring the authenticity of these purchases remains a key concern.

Shopping for vintage designer pieces has become a popular activity for international visitors. From large resale chains like Book Off and Komehyo to smaller boutiques specializing in brands like Hermès, Chanel, and Louis Vuitton, Japan’s secondhand market is often regarded as a reliable source for authenticated luxury goods. Some travelers even plan their trips around finding well-preserved items at prices lower than retail.

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Japan’s resale industry is known for its rigorous authentication process, where professionals verify materials, stitching, serial numbers, and hidden security features using specialized techniques. The country’s strict anti-counterfeit laws further contribute to maintaining the integrity of the market.

However, counterfeit goods still find their way into circulation. In the past, obvious flaws such as incorrect logos or poor craftsmanship made counterfeits easier to identify. Today, advancements in manufacturing have made distinguishing fakes more difficult.

“The quality of counterfeits has improved significantly,” says Vidyuth Srinivasan, CEO of Entrupy, an authentication company that uses AI-driven microscopic analysis. “Details like texture, finishes, and even stitching that were once telltale signs are now more refined.”

The counterfeit industry operates on a global scale, with production, distribution, and sales taking place across multiple countries. While China remains the primary source of counterfeit goods, these items are often shipped through various locations before reaching buyers.

Despite Japan’s strong reputation for authenticity, smaller resellers and peer-to-peer transactions remain vulnerable. Marvi Buico, who runs a resale business in Osaka, notes that counterfeit items occasionally surface in the market. “We once encountered a fake Chanel bag, but AI flagged it before the sale went through. Authentication tools like Entrupy and Legit Grails help protect both sellers and buyers,” he explains.

Technology continues to play a crucial role in maintaining the credibility of the resale market. AI-driven authentication systems analyze microscopic details to detect inconsistencies, though no system is infallible. “If a counterfeit gets through, we analyze it and refine our detection methods,” Srinivasan says, adding that Entrupy provides financial guarantees to resellers if its system misidentifies an item.

While Japan’s secondhand luxury market remains one of the most trusted globally, ongoing developments in counterfeiting technology highlight the need for continuous vigilance. Ensuring authenticity remains a priority for businesses and buyers alike.


Explore top supply chain news stories at The Supply Chain Report. Visit ADAMftd.com for free international trade tools.


#CounterfeitGoods #LuxuryResale #JapanMarket #BrandProtection #ConsumerAwareness #SupplyChainIntegrity #ResaleChallenges

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