TURKEY’S COUNTERFEIT MARKET

Turkey has become a source for counterfeit products, especially designer fashion.Turkey is the third largest exporter of counterfeit products to the EU, after China and Hong Kong (based on seizure value). Turkey is involved in the manufacturing and sales of both genuine and counterfeit goods, in addition to being an important transportation hub.

Turkey  is known to export apparel and shoes to Europe, among other goods, with the value of counterfeit goods increasing. According to a December 2021 European Commission (EC) and European Union Intellectual Property Office (EUIPO), Turkey remains a major source in terms of the value of counterfeits going into the EU. The value of counterfeits exported from Turkey more than tripled from 2019 to 2020, reaching nearly €134m.

Turkey is the leading source of fake clothing (known for counterfeit designer clothes) and accessories (belts, ties, gloves, etc.) and counterfeit drugs, and other products (such as condoms). In these categories, Turkey surpasses China to become the number one source of counterfeits seized at EU borders. Turkey is the second largest source of counterfeit perfumes and cosmetics, bags, jewelry and accessories, sports shoes, and textiles (such as towels and linen). Turkey is the third major source of counterfeit food products, non-sports shoes, watches, vehicles, vehicle accessories and parts, as well as labels, tags, and stickers.

Right on the borders of the EU, Turkey is involved not only in the production but the entrance of illicit goods into the EU. A 2020 report by Europol mentions large quantities of counterfeit goods and footwear by famous brands crossing from Turkey to Greece and later sold as genuine items. Bulgaria’s customs authority reports on vehicles and trucks crossing from Turkey into their territory with counterfeit goods.

Some freight companies export mainly counterfeit goods on trucks going into the EU, and have a system that includes forged documents and sometimes help from border officers.

Turkey’s textile industry is well known, and many brands manufacture their clothing, accessories, and leather goods in Turkey. Therefore, there is knowledge in the country on how to create high-quality fakes. In the past, most fakes were associated with poor quality. This is not necessarily true anymore. Today, super-fakes are so close to the original that it can be almost impossible to tell the difference.

 Clothes, handbags, hats, watches and more are easy to find in markets around Turkey and online.

Groups of shoppers online discuss where to buy the best replicas, while Instagram pages and TikTok accounts sell fakes to customers wherever they may be. The most well-known Turkish market is probably the Grand Bazaar in Istanbul and the streets around it that create the city’s market district. There you can find luxury fashion houses from Gucci to Prada and Louis Vuitton, handbags, sunglasses, watches, perfumes, electronic products and the list goes on. Other shoppers say that the best products are not really out for display in the bazaar. The reason is that sellers do not want to lose their goods if the police confiscate the openly displayed fakes. Instead, they keep their high-quality products someplace more discreet and only take some customers to see them in unmarked apartments outside of the bazaar that often change their location to avoid police raids. There are other markets around the country, like Izmir,  Kusadasi.

Counterfeit goods are easily found in Turkey, and IP infringement is widespread. The fake industry fuels organized crime and labor exploitation. Criminal networks are involved in the production and distribution of counterfeit goods and in bribery and corruption that enable the goods to pass through customs. They operate illegal factories with unregulated labor e.g. Syrian refugee children, as well as  Turkish children.

The Turkish police carry out some enforcement operations but the country has been charged as being ineffective in the enforcement of intellectual property rights.

The effect of the economy

The fall in the value of the Turkish lira fuels the trade in counterfeit goods. A decrease in the value of the lira makes it cheaper for buyers to purchase counterfeit goods in Turkey when they buy with euros. The same is true for other currencies, such as the US dollar. When goods are cheaper in Turkey, it makes the export of counterfeits more profitable. Together with an economy that is currently not doing very well, selling fakes has become even more appealing.