Luxury industry undermined by counterfeit goods

Along Shanghai's bustling shopping street of Nanjing Road, small but loud stores dot the thousand-meter-long stretch of road between the glass-and-steel Apple Inc store and sleek upscale malls.

"Italian luxury items on sale. Final three days. Don't miss it!" yelled a voice over the loudspeaker at an entrance to one of the stores.

Inside, tourists and middle-aged women are packed into the cramped store for T-shirts, leather wallets and belts that bear logos similar to those of LV and Gucci but cost a suspiciously low price.