The popularity of Dr. Dre Beats headphones has led to a rise in fakes coming out of China where the counterfeit musical acessory is being produced in factories and workshops attracting business people who sell the headphones on global markets, CNN reported.
According to CNN, wholesale companies in China are selling high-end Beats that would retail about $400 in the United States for $70. The better audio quality is what users are paying for, and the counterfeits delivers that, as well.
In-ear Beats headphones that retail for $100 dollars in the United States can be bought for merely a dollar in the underground subway stations, CNN reported.
"Business is very good. You buy cheap from me, you sell expensive in your home country, we all make a lot of money," said a woman who runs a wholesale company selling copied headphones, CNN reported.
Along with iPhones, Samsung gear and Nikon cameras, the beat headphones are a high commodity.
The high-end headphones, which were created in 2008 and have been advertised by Justin Beiber, Lady GaGa and Eminem, started a premium line of headphone for fashion trend music lovers, according to CNN.
"Today, the premium headphone market is defined by fashion and brands as much as it is by sound quality," Ben Arnold, director of industry analysis at market research firm NPD Group told CNN. "One third of premium headphone buyers are under the age of 25 and many of these consumers view headphones as equal parts listening device and fashion accessory."
In the U.S. alone sales of headphones rose by a third last year to $2.4 billion, with Beats by Dr. Dre making up almost 70 percent of all high-end headphones during the Christmas period, according to market research firm NPD, CNN reported.
Another wholesale store owner told CNN that she advises her customers to use European or American logistics when buying the headphones in bulk because "customs usually trusts these brands better."
Beats Electronic, the company behind Dr. Dre's Beats headphones stated in an email that the "company shows a fierce commitment to fight piracy and that it works in close collaboration with anti-counterfeiting organizations, police and customs authorities to identify counterfeit sellers, distributors and manufacturers on key markets.
"Since efforts began, Beats has seized hundreds of thousands of counterfeit products in more than 50 countries," the company told CNN.
During a month long operation with U.S. customs this past July, 243,000 counterfeit products, including Beats headphones, were picked up by U.S. Customs and Border Protection. The operation was the largest bilateral customs enforcement ever conducted by the U.S., according to CNN.
