June 15, 1998
Course: Principles of Marketing
Topic: Brand Protection
Title: Customs Agents Make Huge Designer Shoe Bust
Link:
Length: 1:58
Air Date: August 16, 2012
Source: ABC World News Tonight
Synopsis: Every year, Customs and Border Patrol agents intercept more than 1,000 shipments of counterfeit goods in Los Angeles. One recent shipment included 20,000 pairs of fake Christian Louboutin shoes. Counterfeits like these cost the U.S. nearly a million jobs and billions of dollars in lost sales.
Classroom Application: Instructors will find this video helpful when discussing brand protection. All discussion questions apply.
Instructors may want to engage the students in a discussion of their views of counterfeit goods. Why is the market for counterfeit goods so lucrative? Why would someone want to purchase counterfeit Louboutin shoes? How might the Louboutin company respond? What else can be done to fight counterfeiting?
Discussion Questions:
1. Why can’t Customs and Border Patrol agents catch all counterfeit goods shipped into the U.S.?
Answer: Todd Owen, Director, Customs and Border Patrol, says that Los Angeles is the busiest port in the country and receives 13,000 containers each day. About half of these containers are shipped from China, where (Owen implies) most counterfeit goods are made. Every year, Customs and Border Patrol agents intercept more than 1,000 shipments of counterfeit goods in Los Angeles alone.
2. What kinds of counterfeit products have Customs and Border Patrol agents found?
Answer: In addition to the 20,000 pairs of fake Christian Louboutin shoes, Customs and Border patrol agents flagged shipments of children’s shoes with high lead content, flat-screen televisions, fans, perfume, car parts, and circuit boards destined for NASA.
3. Some people believe that sales of counterfeit goods constitute a victimless crime. How would you respond to this claim?
Answer: Sales of counterfeit goods have many victims. According to , counterfeit and pirated goods cost the U.S. economy 750,000 jobs and legitimate merchants lose approximately $250 billion each year. There is also the loss of sales tax, which hurts institutions like schools and hospitals who count on this income. Additionally, luxury brand owners, like Christian Louboutin, also can be hurt by counterfeit products. Louboutin shoes are highly priced and viewed as status symbols. If “just anyone” wears red-soled knock-offs, then the status of the Louboutin brand image is lowered.
Quiz:
1. The port of Los Angeles receives 13,000 containers per day. About half of those containers are shipped from what country?
a. Mexico
b. China
c. New Zealand
d. Japan
Answer: b
Explanation: Los Angeles, the busiest port in the country, receives 13,000 containers per day. About half of those containers are shipped from China.
2. Every year, Customs and Border Patrol agents intercept more than ________ shipments of counterfeit goods in Los Angeles.
a. 250
b. 500
c. 750
d. 1,000
Answer: d
Explanation: Customs and Border Patrol agents intercept more than 1,000 shipments of counterfeit goods in Los Angeles each year.
3. Counterfeit goods cost the U.S. economy ________ jobs.
a. 250,000
b. 500,000
c. 750,000
d. 1,000,000
Answer: c
Explanation: According to , counterfeit and pirated goods cost the U.S. economy 750,000 jobs and up to $250 billion per year.
4. Counterfeit goods cost the U.S. economy _______ per year.
a. $250 billion
b. $500 billion
c. $750 billion
d. $1 trillion
Answer: a
Explanation: According to , counterfeit and pirated goods cost the U.S. economy 750,000 jobs and up to $250 billion per year.
5. Which of the following statements about Christian Louboutin shoes is FALSE?
a. Both fake and genuine Louboutin shoes come from China.
b. The sole color on genuine Louboutins is called China Red.
c. Genuine Louboutins have soles that curl to meet the leather upper.
d. Fake shoes have ridged soles; genuine Louboutins have smooth soles.
Answer: a
Explanation: Genuine Louboutin shoes are made in Italy. Counterfeit Louboutins tend to come from China.
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