‘Market of Fakes’ in Naples, capital of counterfeits and Camorra

AS TOP BRANDS LIKE Gucci and Prada prepare to report billions in sales this month, luxury fakes on the streets of Naples are also yielding a jaw-dropping cash stream — for the mafia.

The teeming southern metropolis is ground zero for Italy’s estimated 6-7 billion euro ($6.5-7.5 billion) counterfeit market, where fake handbags, sunglasses, clothing and shoes flourish, hawked in plain sight to buyers willing to score a knockoff bargain.

“Which brand do you like? What colour, what model?” asks a persistent seller at the “Market of Fakes” spread out over back alleys near the gritty city’s central train station.

Men arrive hauling overstuffed blue plastic bags, from which emerge Gucci baseball hats, Fendi wallets, Hermes belts and bright orange Louis Vuitton shoeboxes, sold from rickety tables at a fraction of the price of their originals.

Counterfeits are a global phenomenon, whether fake fashion, toys, electronics, food or pharmaceuticals, estimated by the OECD to represent 2.5 per cent of world trade.

But Italy — home of the most luxury fashion brands — is the clear leader in counterfeit seizures within the European Union, accounting for 63 per cent of detained items in 2022, according to a November EU report. And it’s in Naples where counterfeits find a unique breeding ground, giving it the dubious distinction of being the undisputed European capital of fakes.

The city is home to every phase of the counterfeit fashion supply chain from manufacturing and warehousing to distribution and sales — all dominated by the region’s homegrown Camorra mafia.

EASY MONEY

While many consumers are unconcerned about counterfeits, the mafia’s handprint has increasingly made them a law enforcement priority.

“Counterfeiting is very important because it’s a warning bell,” signalling more dangerous crimes, said Lieutenant Colonel Giuseppe Evangelista, head of operations in Naples for the Guardia di Finanza, Italy’s financial crimes police.

While less lucrative than selling drugs, counterfeiting generates cash, helps launder drug money and is relatively low-risk, with jail sentences far below those for more violent crimes.

“They’ve already got the clientele... the tourists go by on the street, the bag is bought and it generates profits for the criminal organisation,” Evangelista said. Police seizures are frequent and on the rise, including the discovery of a factory producing thousands of counterfeit Napoli banners, jerseys and caps in February.

Interior ministry data shows that between 2018 and 2022, Naples police seized nearly 100 million items worth over 470 million euros — some 14 per cent of the value of all counterfeit goods seized in Italy.

“In Naples, counterfeiting represents a real parallel economic sector,” run by local and foreign mafias, wrote a 2021 government report. It called the city a “centre of excellence” for fakes.

An artisanal heritage in tailoring and leather, an international port, high unemployment and an influx of cheap foreign labour have all helped counterfeiting flourish — as has the local population’s long-standing tolerance of bending the rules.

CAMORRA AND CHINA

Collaboration between the Camorra and Chinese criminal groups fuels the rigorously controlled system.

While higher quality goods are produced locally, most imported goods come from China and Turkey.

Counterfeiters choose busy EU ports, such as Rotterdam, or those with less stringent control like in Greece or Bulgaria, before reaching Italy by truck.

Once in the Campania region, final finishing takes place in workshops using cheap illegal labour. Labels are frequently shipped separately and sewn on last, making it more difficult for customs to spot fakes.

The mafia also controls distribution, either through its own sales channels or pressuring shop owners to sell fake goods among their genuine items.

A 2022 police investigation found Naples street market sellers paid the mafia up to 200 euros weekly to operate their stands, or were forced to buy their merchandise.

CANCER’ IN MARKET

Counterfeiting exerts a significant toll on the economy, resulting in substantial losses in demand, employment, and tax revenue. In 2020, the Italian government estimated these losses at 17 billion euros, exacerbated by the economic downturn induced by Covid-19 lockdowns.

Beyond financial implications, counterfeit practices contribute to environmental hazards, such as the disposal of hazardous materials from fake garments and shoes, fuelling hundreds of toxic fires in Naples annually. Major brands allocate substantial resources to combat counterfeiting, with Louis Vuitton alone initiating over 38,000 anti-counterfeiting actions globally in 2017.