Quite what that has to do with a cheap cycling shirt I don't know but trading standards might be interested in your friend's company relabeling jackets with a premium tag. As for "reducing the number of counterfeit jackets that would have appeared". Come on Vern.
He was employed by the premium brand as a finishing company. They were premium brand jackets that didn't become premium brand jackets until the labels were sewn in and any defective stitching corrected. Ones that didn't meet spec were sold on market stalls. As for reducing the counterfeits - it meant that the company could control the numbers better in the UK rather than at the factory gates in India. The label supply and count was stringently and regularly audited.
The manufacturing costs of premium brand and non premium brand goods are virtually identical only the perceived value of a brand adds a premium brand price to the cost price - something that the vain and affluent are prepared to pay for and the cost conscious and slobs aren't.
Retailers will charge whatever they think they can get away with. Sports Direct buy in bulk and discount heavily and still make a handsome profit. I bet the Amazon retailer buys at a not too dissimilar price and elects to sell at a price that they guage that their customers will bear.
Any clearer now?