1. A fashion label invites a bunch of clothing manufacturers to a pricing auction. They all meet somewhere.
2. The representative of the label describes the clothing they want. The manufacturers bid for the contract, with bids taking the form "X many items within Y period of time at Z cost". For example, 800 items / 20 euros per item / 1 month.
3. Eventually, the brand will accept a bid. At that point, every manufacturer may commit to fulfilling it. Any manufacturer accepting the winning bid is given the material for free.
4. Whoever delivers first gets paid. Everyone else is left with a partially-complete order that they can no longer sell to the brand that commissioned it.
(4a. Manufacturers who show a history of accepting bids for the free fabric and then failing to deliver get blacklisted.)
5a. The brand sews its label onto the clothes it bought and sells them at "high" prices.
5b. The slower manufacturers may sell their too-slow clothes to the mafia, which sews a counterfeit label onto them and sells them at "low" prices.
So now we have the mafia selling "counterfeit" clothing that would have been "real", if only it had taken a little less time to create. The fabric and cut are to brand specifications because the clothes were made at the brand's direction to bear their fancy label. Would you call those clothes counterfeit?