One of the most iconic South African brands under siege
The surge in counterfeit K-Way products has become a threat to one of South Africa’s most recognisable clothing brands, as well as to local manufacturing, consumer trust, and jobs.
This is the feedback from Mike Elliott, CEO of Cape Union Mart Group, who said that counterfeit K-Way have plagued the company for years.
In an interview with HOT Business, he explained that the company operates a factory in Cape Town that employs around 400 people and manufactures K-Way’s core products, including its popular puffer and soft-shell jackets.
“It’s incredibly important for us, and we’ve committed some time back to this journey and remain committed. We want to see that grow,” Elliott said.
However, he said counterfeit K-Way products have plagued the business for well over a decade, with the problem becoming significantly worse in recent years.
“It’s been a problem for many years—15 years plus, really. We’ve got a counterfeit unit that we work with that we keep on retainer year after year, working on the problem,” he said.
He added that the rise of online marketplaces has dramatically expanded the reach of counterfeit sellers, moving fake products beyond informal markets and into more mainstream retail channels.
At the same time, artificial intelligence has made it easier for criminals to deceive consumers. “We’ve seen the prevalence of AI tools that are very quickly scraping our websites and creating false websites,” Elliott said.
“All of a sudden, the online space has created a much higher focus on the issue and escalated the problem.”
While Elliott acknowledged that many South Africans knowingly purchase counterfeit products because they are cheaper.
“South Africans are just under so much pressure that a low price point allows them to get the product that’s become so aspirational,” he said. However, he added that K-Way’s focus on quality inevitably comes at a higher price.
“We produce a product that is of incredibly good quality, and what that does mean is that it’s not the absolute cheapest product in the market.”
Stronger border enforcement needed
To make the brand more accessible, Elliott said the company introduced an entry-level puffer jacket at a more affordable price.
“Our entry price point on a puffer jacket had crept to R1,200, and we introduced a jacket last season at R999,” he said.
“It still retains the quality that we believe the brand carries, but it really is a response to try and allow customers an access point into the brand that is more affordable.”
Even so, Elliott believes organised crime remains the driving force behind the counterfeit trade. In his view, if the criminals couldn’t get away with what they were doing, then we wouldn’t have the issue.
Elliott said counterfeit jackets can often be identified by poor-quality logos, stitching, zips and materials, but admitted that many consumers struggle to tell the difference.
“The easiest way to know is if it’s not in either one of our Cape Union Mart stores or our own website, it’s a fake product.”
Although Cape Union Mart has managed to shut down counterfeit operations and remove fake websites, Elliott admitted the fight is relentless.
“We’ve had some success, but I’d call it limited over the years. It feels like you’re putting your finger in the dike. As soon as you close one hole, another opens up,” he said.
Elliott stressed that stronger border enforcement is essential. He said SARS and the border authorities can do more to plug the inflow of counterfeit goods, as they are generally imported. “Without product, they can’t operate.”
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