Dupes might look like a bargain but are they really?

Personal confession. I love Chanel N°5 but I can't bring myself to fork out $140 for a 35ml bottle (equal to a nip of spirits).

Instead, I satisfy my cravings with the occasional squirt at cosmetic counters.

What I can afford is a dupe.

That's short for 'duplicate' - a product that closely resembles a well-known brand priced at a fraction of the cost.

As an example, Aussie perfumery Asedos sells Floral Bouquet Perfume Oil, described as 'inspired by Chanel N°5', for $31.

I'm not alone in the hunt for affordable approximations of luxury brands.

An industry survey found that almost one in two Australians has recently purchased a dupe, with many likening the cheaper alternatives to 'Robin Hood' brands that take from large corporations and give back to consumers.

The dupe movement is so prevalent it has spawned online stores such as Dupeshop Beauty, The Dupe Spot and LuxuryDupes that are unashamedly pitched at bargain hunters.

Given that luxury brands invest a small fortune in creating, patenting and protecting their products, it raises the question, how do dupes get away with it?

What is the difference between counterfeits and dupes?

Whether you call them dupes, clones, knock-offs or copycats, there's nothing new about products that imitate prestige brands.

For many decades, Australian holiday makers have returned home from overseas, Asian destinations in particular, laden with counterfeit Louis Vuitton handbags, imitation Rolex watches and a host of knock-off electricals - all purchased for next-to-nothing.

In Thailand, a global hotspot for counterfeit goods, demand for knock-offs reached the point where in 2023 the government launched a campaign warning tourists and businesses of the dangers and consequences of buying and selling fake products.

Even so, the global counterfeit trade continues to thrive.

The Watch Register, part of the Art Loss Register, the world's largest private database of lost and stolen art and collectibles, reports a 116% increase in the number of counterfeit watches identified over the past three years.

Katya Hills, founder and managing director of Watch Register, says counterfeiting is growing in sophistication.

Spotting the difference isn't always easy. As a guide, genuine luxury timepieces have a unique serial number.

This would be costly to replicate on fakes, so it is common for the same serial number to be repeated on counterfeits - something the average consumer may not pick up.

Buying fakes may seem like a bit of holiday fun.

However, Hills says counterfeits are not just about creating knock-off products. "It is about deception and manipulation on a global scale."

She says counterfeits are often produced in sweatshops that exploit vulnerable workers, and the profits generated from these activities "are often funnelled into other criminal enterprises".

So are dupes legal?

Dupes, on the other hand, are not trying to pass themselves off as the real thing.

It's more about close approximation than replication.

IP Australia, the government agency that manages intellectual property, spells out that one of the litmus tests for breaching a trademark is whether an 'ordinary person' would be confused about where the goods come from.

Most of the time the distinction is reasonably obvious. But it can be a fine line.

In 2000, Estée Lauder, which reportedly has 165 registered trademarks in Australia, successfully defended one of its brand names, Secret Pleasures, against a company selling intimate apparel, condoms and related accessories under the name Private Pleasures.

What's driving the trend of dupes?

Today, duplicate products can be found in just about every product category. It's not drawing a long bow to suggest that Aldi's Bran & Sultanas breakfast cereal ($0.69 per 100 gram) is a dupe of Kellogg's Sultana Bran ($1.67 per 100 gram in a slightly smaller packet at Woolworths).

However, it is in fashion and make-up that dupes have hit their stride. And social media platforms, notably TikTok, have been key drivers of the trend.

Search for #dupes on TikTok, and close to 250,000 posts are listed, the majority involving fragrances and cosmetics.

Part of TikTok's strength in promoting dupes lies in the way the platform's algorithm works.

It is designed to show users content that aligns with their interests. Click on a video about food in South Korea, for example, and you'll be inundated with similar content. It's the same for dupes - engage with dupe content once, and the algorithm will dish up more of the same.

There may be another factor driving demand for dupes - and that's growing consumer awareness of the extraordinary mark-ups that can apply to luxe brands.

In July 2024, The Wall Street Journal published a report revealing that Christian Dior handbags, which retail for more than $US2816 ($4300) cost little more than $US57 ($87) to make.

The article prompted Italy's competition authority to open investigations into Dior Group as well as fellow luxury brand Armani, for possible violations of the consumer code.

The authority pointed out that despite emphasising craftsmanship and quality, both companies may have "issued untrue statements" about their ethics and social responsibility, particularly with regard to working conditions and compliance with the law by their suppliers.

It's not the first time luxury brands have been exposed for charging stratospheric prices for products that cost little to make.

In March 2024, Bloomberg reported that Italian-made Loro Piana sweaters, which retail for around $US9000 ($13,700), are made from the wool of vicuñas (Peruvian llamas) that are cared for by Indigenous villagers who allegedly earn next to nothing for their efforts.

When are dupes worth buying?

Even without these allegations, the reality is that plenty of us simply can't afford luxury brands. Nick Terrell is a Sydney-based uni student.

Between classes, he flips burgers for a living, so his budget is tight. That makes dupes a natural for his shopping preferences, especially when it comes to fashion.

"Generally speaking, dupes are a fantastic alternative for certain items, especially colognes and clothing, where the products can be almost identical," says Terrell.

He points to stores such as Cotton On, which he believes are "stacked with dupes", adding that his favourite dupe is a Kmart sloppy joe featuring the Everlast logo.

"It costs around $15," says Terrell. "And while it isn't identical to Fear of God's Essentials sloppy joe (priced at $155) it's close enough."

Terrell acknowledges that social media has increased his awareness of dupes. Ultimately, though, he questions why anyone would pay more for a branded product that does exactly the same job as a dupe.

It's a view shared by 29-year-old Ditya Rai.

A self-confessed lover of luxury brands, whose spending has been shackled by rising home loan repayments, Rai also points to Kmart as her favourite for lookalikes, describing the store as "dupe central".

"Last year I purchased an Oodie lookalike from Kmart for $25. The genuine Oodie was close to $100. The dupe is soft and warm and still going strong," she says.

There is no doubt that discount retailer Kmart is nailing dupes across a number of product lines.

A jumbo drink tumbler that bears more than a passing resemblance to an $80 Stanley tumbler retails for just $15.

Or consumers can save with a $59 hair styler that appears to be a more affordable version of the Dyson Airwrap priced from about $749.

On the cosmetic front, one of Australia's best-known dupes is MCoBeauty, which the company claims is the highest selling beauty brand in Woolworths.

MCoBeauty's Flawless Glow foundation is packaged and presented in a similar way to the Charlotte Tilbury Hollywood Flawless Filter foundation.

The difference is that the Tilbury product is priced at around $70 at Mecca, while the MCoBeauty product retails for $35, and at the time of writing was on special at Big W for $21.

Despite the savings, not everyone is sold on cosmetic dupes. Rai may be a keen bargain hunter, except when it comes to skincare.

"I am a lot more confident with brand-name beauty products that I can be sure have been thoroughly tested. You don't want to end up having a bad reaction due to poor quality ingredients."

What about quality?

Her concerns may have some validity, though more so with counterfeits than dupes.

In what should be a warning to bargain chasers, the US Federal Bureau of Investigation (FBI) found that counterfeit cosmetics and fragrances, which may also be sold via online auction sites, can contain arsenic, beryllium, and cadmium (all known carcinogens) along with dangerous levels of bacteria.

Quality isn't the only factor. As the number of dupes rises to the point where there are knock-offs of knock-offs, another issue may be at stake.

Terrell sums it up: "I'm unsure about the solvency of dupe companies. There is no guarantee that a new, small duplicating company will remain solvent compared to the market giants. That could be a problem if I am chasing a refund on products."

He has a point.

Ultra-cheap Chinese-owned online-only platforms such as Temu and Shein have amassed an extraordinary number of customers in a short time. Shein has close to 800,000 shoppers each month in Australia. About 1.26 million Australians shop on Temu each month.

Michele Levine, chief executive officer of research firm Roy Morgan, says it remains to be seen whether Temu will stick.

"The current numbers indicate that a lot of people are trialling the platform. The longevity of these platforms is unknown, especially Temu, as we wait to see how its aggressive loss-making customer acquisition strategy unfolds."

Can online reviews be trusted?

When we can't visit a bricks-and-mortar store to check out a product, online reviews are a handy tool to decide if a product or service is worth buying. The downside is that dodgy reviews are rife.

The consumer watchdog, the Australian Competition and Consumer Commission (ACCC), makes it clear that writing fake or misleading reviews breaches Australian Consumer Law. The catch is that fake reviews are proving remarkably resilient.

The World Economic Forum (WEF) estimates that 4% of online reviews - almost one in 20 - are bogus.

The problem is more prevalent in certain industries than others. In a 'sweep' of sectors, the ACCC found the fashion industry has the highest proportion of potentially fake or misleading online reviews.

That's followed by travel, household appliances and electronics. The sectors with the lowest proportion of potentially fake reviews are health products, beauty products and food/restaurants.

Part of the problem is the powerful incentives for businesses to post fake reviews. According to the WEF, good reviews can boost revenue by up to 9%.

This makes it worth approaching online reviews with a healthy degree of scepticism. Not all positive reviews are fake, but on the flipside, negative reviews, which could be posted by a competitor, can also be fictitious.

Sorting fact from fiction isn't easy. The consumer group Choice notes that over-the-top rave reviews, along with brief, generic comments such as 'Amazing product!' or 'Totally recommend', are potential red flags for fake reviews.

Some platforms allow consumers to post photographs of a product they have received. This is a feature of Shein's website, and the images often say a lot more about the quality of an item than written comments.

What are your consumer rights?

Dupes may offer savings, but if things go wrong a bargain purchase can be a source of frustration.

Instore shoppers at Kmart and Target, both owned by Wesfarmers, will have noticed new posters at checkouts telling customers that receipts will be needed for 'change of mind' refunds from August 1, 2024.

In general, though, you're unlikely to have too many issues scoring a refund.

When it comes to budget-priced online-only overseas retailers, the picture is a little murkier.

The ACCC states that online businesses based overseas, which sell directly to Australian shoppers, must follow the Australian Consumer Law, and platforms such as Temu, Shein and AliExpress all have refund policies clearly stated on their websites.

Nevertheless, the ACCC acknowledges that getting a repair, replacement or refund can be difficult, and in a global marketplace our homegrown consumer watchdog can offer only limited support.

It's worth noting that consumer protection goes beyond access to refunds.

Ultra-cheap dupes purchased from overseas platforms may not comply with Australian safety standards.

This can have serious consequences. In early 2024, a stroller sold through Temu was recalled because it lacked a number of safety features including effective brakes.

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