Luxury goods scam: Risks involved when buying from ‘grey’ market, but shoppers say there's little choice

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Luxury goods scam: Risks involved when buying from the ‘grey’ market, but shoppers say there's little choice

They described a buying process bound by an industry-wide “open secret” — where highly sought after brand-name products are reserved only for a select group of big spenders, which is why many turn to resellers instead.

The couple, now fugitives, fled Singapore earlier this month in a container truck after taking large orders for luxury items and not delivering on them TODAY spoke to 11 luxury goods buyers, collectors and dealers over the past week, many of whom said that it was difficult to obtain highly demanded products directly from the brand’s boutiques or authorised distributors.

Watch collectors often refer to the sales of watches outside of authorised distributions as the"grey market", as opposed to a black market, which often connotes dealings in goods that are manufactured or sold illegally. Both Mr Koh and Mr Sim mostly buy these items in person and rarely pay for them in advance, unlike the alleged victims in the recent case.

When buying from Singapore sellers, however, he said that it is not likely for shops to ask for cash in advance and that buyers should be wary when doing so. Ms Zee Mohd, co-founder of True Style Sg, told TODAY that she has special access to brands such as Balenciaga and Valentino. She sells them on Facebook and Instagram, and also e-marketplace Carousell.

Many of the buyers who spoke to TODAY said that they started buying luxury fashion products online since the Covid-19 pandemic made it difficult to travel overseas to shop. With no travel expenses, they had extra cash to spend.

 

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