KARAMA TRADERS JUST SELL GOOD VALUE AFTER CRACKDOWN ON FAKE PRODUCTS
▶ Shopkeepers in Dubai district hope their low prices will draw customers previously lured by counterfeit goods
The crackdown on Karama’s market in fake goods appears to be working.
Pressure on the illegal goods trade is forcing many business operators to adapt, sending the industry deeper underground.
Shops are closing, and fewer tourists are visiting the once bustling shopping district in Dubai.
Those continuing to trade are confident of a turnaround but cannot hide their frustration and worry over what the future may hold.
Large fines and regular spot checks by the Department of Economic Department are having a effect on business.
“I’ve been working here for six years. There’s been a big change,” said Salman, from Bangladesh. “Before, people would come here just for the fakes. Not any more.
“We sell things for very good prices. Not everyone can afford Dubai Mall. Many shops have closed, even some bigger ones.”
Buying a fake at a discount price may seem harmless, but sales of counterfeit products often funds criminal networks.
Last month, The National reported how thousands of counterfeit watches, mobile phones and accessories, valued at Dh33 million, had been seized in Dubai.
The fakes were confiscated during raids at a warehouse in Ras Al Khor, Dubai Police said.
This year, police also raided a villa in Al Hamriya after finding out that fake mobile phones were being sold there.
Police said that taking fakes out of circulation protected the public from unsafe products that were not subject to the same rigorous standards testing as authentic items.
Shopkeepers said landlords had offered discounts on rent, reducing it from Dh120,000 a year to Dh70,000 to help businesses.
Huge murals have been splashed on the sides of buildings to brighten up the area and pull in tourists, but few are spending cash in the hundreds of independent shops.
For those traders still standing, the climate is tough.
“I can’t see how the business can carry on like this,” Salman said. “No one is here. There have been big fines and that has scared shops from selling the things people want to buy.
“Traders have lost goods when stock is confiscated in raids, so it’s a big risk now.”
Nazaer, 32, from India, has experienced a similar decline.
“Just three years ago business was good,” Nazaer said. “The artwork has brightened the place up and it was a good idea to get more people to come here, but they only take photos.
“Some of the shops have closed, they were finding it too difficult. Mostly tourists come as they’ve heard Karama is famous for fake brands, but they are often disappointed. I’ve sold nothing today.”
Haris, 37, also from India, has been in Karama for 11 years.
“When I first came here to work there were about a thousand people working here,” Haris said. “Every shop had at least three people working, maybe more. It was an exciting place, always busy.
“Now there are fewer than 700 people working here. Some have gone back home as there is not enough business for everyone.”
Fake Gucci handbags and the famous red soled Christian Louboutin shoes may have vanished from the shelves but shoppers desperate for a bargain can still pick up cheap imitations online.
One global brand, Burberry, was under fire after announcing it had burnt $38m (Dh135m) of unsold clothing and beauty products to protect brand integrity.
The practice is not unusual to retain exclusivity of products and stop items falling into the discount market.
Swedish fashion house H&M has taken a similar stance, burning unsold clothing in industrial incinerators to help power a small town in northwest Stockholm.
Despite the drop in customers, there is still a buzz around Karama, mainly generated by staff looking to pass the time.
Many of the 400 or so Karama shops have their own cricket teams, playing in night matches at local sports grounds. It is creating a friendly rivalry between traders.
Cricket gives traders something to look forward to after a day of clock-watching on the shop floor.
“Bags, sunglasses, watches and belts are very popular still,” said Firooz Mohammed from Iran, who has been in Karama for nine years.
“The street art is beautiful but it hasn’t helped us with bringing more customers. I hope I am still here in five years but I’m not so sure.”