Fake goods cast a shadow on markets

Published on February 1, 2019 by

Fake goods in Bangalore are in high demand as customers prefer second copy products over originals.

After the 2018 GST policy, the futures of markets that sell fake goods remain uncertain as the cost of the original products has gone down.

Customers prefer purchasing fake goods over original products as the prices are low and the quality of these second hand copies are similar to that of the original one.

Many sellers across various fake good markets in the city claim that the reason for the increase in this demand is because of GST (Goods and Service Tax).

Prajwal KR, a seller of electronic goods at SP Road grey market said, “My sales began increasing in 2017 after the GST was implemented. As of today, we are making 50 per cent more money than we used to make two years ago”.

Various markets in Bangalore sell products that are copies manufactured from sources that are not original brands. Manufacturers make duplicate or second copy products and sell them at subsidised prices. For instance, a 32 inch LG television would cost Rs. 35000/- at retail stores but the cost of a television with similar features would be Rs. 20000/- at this market.

Erram Nashith Shariff, a customer at National market said, “I got my OnePlus phone’s screen display fixed for Rs. 3000/- from a service shop here; it would have costed me Rs. 10000/- at the OnePlus store. When durability and quality is similar, I would prefer paying lesser”.

Another seller, Mohammad KC said, “We import out products from China at much lesser costs and sell them here with an aim of earning a 10 to 15 per cent profit. Since GST, we have started importing more products on a more regular basis”.

The GST system brought about a lot of changes in the way markets functioned. Economists believe that one of the after effects of the GST was that customers’ purchasing power was reduced.

Godwin V Prakash, an economics professor at Christ University said, “People want products that look original. They do not wish to pay more for it. After the GST, the prices of various goods increased and thus people began purchasing similar products that were sold at cheaper costs at grey markets”.

With the changes in the economy off-late, the prices of products, the taxes levied on these products are in the process of getting changed. This will directly affect the sales on these markets.


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