Some of the Dh48 million of fake cellphones seized by Dubai Police in the last two weeks. Photo: Courtesy Dubai Police
Some of the Dh48 million of fake cellphones seized by Dubai Police in the last two weeks. Photo: Courtesy Dubai Police

The real cost of buying cheap counterfeits



With the police clamping down on counterfeit products in the UAE, arresting 45 people in the last two weeks and seizing tens of thousands of replica mobile phones, it's worth looking at why this is a multimillion dirham market segment and to understand the psychology driving those who buy fake goods.

We live in a world where brands say as much about the purchaser as they do about the product itself. Research by the UK-based Association for Consumer Research (ACR) suggests that consumers see high-profile brands as bridging the gap between the actual and ideal self. When buying aspirations exceed one’s budget, some will buy a fake version of a big-name brand rather than a genuine product with a less-prestigious name. While some might naively think the fake is the real thing, most buyers are fully aware the products are fake and even illegal.

While this helps explain why the market for counterfeit goods continues to boom despite the efforts of the authorities, consideration must also be given to the ultimate cost of fake goods.

Buying a “Rollex” watch or a “Nokla” phone might seem to be a harmless attempt to live a glamorous life on a meagre budget. Often these are just brands piggybacking on more established names. But the Apple iPhones and Samsung Galaxy models seized by officers would have been passed off to potential customers as the real deal. The proceeds from this mammoth illicit trade do not just cheat companies out of the rewards for creating the prestige of their brand. Even more important is that the profits from the sale of counterfeit goods are going to criminal enterprises rather than to reputable businesses.

The effort needed to create a factory and then smuggle in the various phone parts separately for assembly is significant. It is the kind of effort that only an organised crime syndicate could undertake. Such syndicates do not begin or end with counterfeiting goods. At one end, they can easily turn their attentions to counterfeiting medicines, which causes serious harm. At the other, they use the same methods to smuggle in drugs.

The UAE’s success as a global transshipment hub will make this country a natural place for counterfeit goods to be passed through or peddled by unscrupulous merchants. The authorities here are fully justified in cracking down on this illicit trade.

UAE currency: the story behind the money in your pockets
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

The specs

Engine: Dual 180kW and 300kW front and rear motors

Power: 480kW

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Transmission: Single-speed automatic

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The smuggler

Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple. 
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.

Khouli conviction

Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.

For sale

A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.

- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico

- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000

- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Alaan%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202021%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Parthi%20Duraisamy%20and%20Karun%20Kurien%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20%247%20million%20raised%20in%20total%20%E2%80%94%20%242.5%20million%20in%20a%20seed%20round%20and%20%244.5%20million%20in%20a%20pre-series%20A%20round%3Cbr%3E%3Cbr%3E%3C%2Fp%3E%0A
The specs

Engine: 2.9-litre, V6 twin-turbo

Transmission: seven-speed PDK dual clutch automatic

Power: 375bhp

Torque: 520Nm

Price: Dh332,800

On sale: now

A MINECRAFT MOVIE

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Rating: 3/5

Paris Can Wait
Dir: Eleanor Coppola
Starring: Alec Baldwin, Diane Lane, Arnaud Viard
Two stars

The specs: 2018 Volkswagen Teramont

Price, base / as tested Dh137,000 / Dh189,950

Engine 3.6-litre V6

Gearbox Eight-speed automatic

Power 280hp @ 6,200rpm

Torque 360Nm @ 2,750rpm

Fuel economy, combined 11.7L / 100km

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