So TRUE! When I lived in China a friend of mine brought us to one particular store that had a number of highly sought after sports brands and other designer name products. Name it and they've got it - most of the items there were indeed the real deal, the only catch was they were not licensed to sell any of the brands they had.
Imagine when Nike Free first came out you could get one for only RMB 120 that's not even a fraction of the cost if you want to buy one in the authorized stores.
A great number of designer clothing is made in China and because of corruption that's why we have piracy - people see that they can make money off it. A lot of these factories contracted by these brand owners make their own stocks without the brand owners knowledge and sell them in the back end.
It's sad but its true and its a thriving business there and in a number of other countries...