Pandabuy: How Corsearch Intelligence Helped Take Down a Global Counterfeiting Empire​

Corsearch played a key role in offline action against Pandabuy, a Chinese-based exporter of counterfeit luxury fashion goods. In a raid of unprecedented scale, nearly 100 officers descended on Pandabuy’s warehouses and head office, leading to 30 arrests and the seizure of enough counterfeits to fill 20 football stadiums.

Read on to learn more about Pandabuy, its target market in the US and Europe, and how online-to-offline intelligence fueled the successful raid.

Table of contents:

• Pandabuy background: a counterfeit distributor that harnessed social commerce

• Investigation and large-scale raid of Pandabuy

• The importance of collaboration between law enforcement, brands, and brand protection partners

• Tackle the offline sources of threats with Investigations 360

Pandabuy background: a counterfeit distributor that harnessed social commerce

Pandabuy, based in Hangzhou in China, was an eCommerce shipping operation that bridged the gap between European / US consumers and Chinese sellers on platforms that restrict international shipping – such as TaoBao. It was a popular location for consumers and influencers who actively sought counterfeit luxury and designer goods. Users would rely on Reddit threads, Discord channels, and TikTok posts to find out where, how, and when to purchase coveted counterfeits.

Many social media users and influencers were happy to promote PandaBuy as a low cost, high-quality counterfeit supplier, leading to the network achieving an average of 16 million monthly visitors. In an attempt to avoid legal culpability, Pandabuy stated in their terms and conditions that the buyer “assumed all responsibility for their purchase.”

Pandabuy impacted a large number of fashion brands. However, when Corsearch first identified it as a threat, most brands were not aware of the operation or too concerned by its activity.

Investigation and large-scale raid of Pandabuy

In Fall 2023, Corsearch's investigators identified Pandabuy’s significant social media presence. The team gathered data that showcased Pandabuy's involvement with facilitating the sale of counterfeit goods. This data included evidence of TikTok users heavily promoting their counterfeit purchases by filming unboxing videos, including instructions for how to import counterfeits goods while avoiding customs. Users would then comment on videos to get information on how to speak to an “agent” at Pandabuy to make their own purchase The agent would showcase the product from a warehouse and send the order to the user.

Our investigators presented compelling findings to one of our customers who conducted their own investigation and test purchases. Their independent verification confirmed Pandabuy as a significant threat.

Other affected brands also started investigations, which gained momentum by November 2023. Corsearch collaborated with these brands and leveraged our strong relationship with the Police Intellectual Property Crime Unit (PIPCU) of City of London Police. After presenting all evidence to our key contacts, PIPCU then forwarded evidence to Chinese law enforcement.

In April 2024, Chinese authorities targeted Pandabuy's head office and warehouses in a large-scale raid involving nearly 100 officers. This offline action was fueled by intelligence provided by at least 16 rights holders, the City of London Police’s Police Intellectual Property Crime Unit (PIPCU), and Corsearch’s Investigations Team. The raid resulted in 30 arrests and the seizure of counterfeit goods worth millions, enough to fill 20 football stadiums.

In response, Pandabuy alerted some customers that certain items had been "discarded" due to their branding. Concerned members of an online community known for discussing counterfeit goods speculated that Pandabuy would no longer handle or ship counterfeit items from brands that had taken legal action against the platform. They suggested that any such items would be withheld from leaving the warehouse.

The raid and legal action severely impacted Pandabuy’s ability to fulfil outstanding orders and led to its eventual shuttering soon after. Further legal action by affected brand owners against Pandabuy’s operators is expected.

The importance of collaboration between law enforcement, brands, and brand protection partners

Collaboration between law enforcement, brands, and brand protection partners is key to effectively combatting counterfeit operations. Corsearch's Vice President of Enforcement, Joseph Cherayath, highlights the importance of building a comprehensive understanding of counterfeiting networks and sharing these insights with law enforcement and impacted parties to enable legal action.

This recent operation marks a significant milestone as a global effort that successfully targeted a large-scale counterfeit shopping agent. According to a representative from the City of London Police, it sends a powerful message that international collaboration can respond to and reduce counterfeiting threats. This approach demonstrates that counterfeiting, as a global challenge, requires unified, worldwide coordination to disrupt these networks effectively.

By sharing data, intelligence, and best practices, brands can collectively target the largest counterfeiting networks exploiting multiple companies. This combined effort not only helps dismantle these networks but also shields consumers from counterfeit-related harm. Additionally, unified action allows brands to advocate for stricter controls on search engines, social media, and e-commerce platforms, making it more challenging for counterfeiters to operate.

Often, brand protection investigators join cases after other tactics, such as cease-and-desist letters, have been tried without success. When investigators know if a target has been previously warned, they can leverage that information for a more effective outcome. Understanding a brand's specific needs and success metrics enables investigators to align their strategy, including conducting multiple test purchases if needed, to gather the intelligence required for online and offline enforcement against counterfeit networks.

Tackle the offline sources of threats with Investigations 360

In response to the growing threat landscape, Corsearch has developed a new Investigations service to aid in your pursuit of both individual targets and commercial-scale operators. Whether you need to disrupt counterfeiting operations, trace revenue leakage, or put a stop to damaging impersonation, Investigations 360 combines with our online programs to provide the tools, data and expertise needed to safeguard your brand.

Our global network of dedicated investigators, stationed in over 100 countries, provides you with real-world, actionable intelligence. Harness our team to find and stop threats at their source by uncovering the people, places, and networks behind the infringement.

Here’s how we can help:

1. Actionable Intelligence: Our investigations service provides clear, data-driven reports that deliver insights into the operations behind counterfeiting, impersonation, gray market activities and other threats. You’ll receive detailed intelligence that allows you to take fast, informed action.
   
2. Global Reach, Local Expertise: With a presence in over 100 countries, our investigations team operates globally, but with an understanding of local legal environments and enforcement protocols.
   
3. Real-World Action: Beyond intelligence gathering, our team facilitates test purchasing, infiltration reports, and even criminal raids, coordinating enforcement actions that lead to the disruption of illicit operations.
   
4. Customizable Packages: We offer tailored solutions, ranging from foundational assistance to comprehensive multi-jurisdictional investigations. Choose the package that best fits your needs or combine them for a tailored solution that evolves with your brand.

Experience Corsearch Investigations 360

Combine actionable data with our expert team of investigators to stay ahead of threats and safeguard both your business and your consumers. Investigations 360 is a comprehensive solution with packages tailored to your specific needs.

Take the next step in securing your brand online and offline. Talk to one of our experts today.

Learn more about the Pandabuy case study

Bloomberg – China’s Fake-Fashion Retailers Jolted by Pandabuy Raid

The Guardian – Pandabuy: police raid ‘20 football stadiums’ worth of alleged fake goods warehouses

World Trademark Review – Pandabuy raid update: UK police and Corsearch expand on their role, as warehouses ‘reopen’