How Fake Watches are Produced and Sold

A civil court case in New York demonstrated the supply chain and profits involved in the counterfeit watch industry.

A group imported fake watch parts from China for the price of 27 cents per watch. After assembling the counterfeit, the group then sold the watches to wholesalers at the price of $12 to $20 per watch. The wholesalers then sold the fake watches to street vendors for $20 to $35 per watch. The vendors then sold the watches to customers for various prices based on street bargaining, with some watches being sold for as much as $250.

Source: “Counterfeit Watches —the Mushroom War!,” Jewelry Insurance Issues, December 2006 Newsletter.