Counterfeiting is a hugely successful parallel industry, especially nowadays where luxury items are no longer restricted to high-tech showrooms or malls. These items i.e. the fake replicas are available almost anywhere and everywhere at affordable rates. The industries that are badly hit by counterfeiting are fashion and cosmetics.
The European market looses approx 10% of its sales every year due to counterfeiting. The figures are on all time high and increasing; thanks to internet and e-commerce boom. Counterfeiters love the fashion market, they are very well aware of our never-ending obsession with branded items with savings. And what better than the blend of pocket-friendly replicas of our favourite designer clothes, handbags, watches etc. The fashion industry is just the perfect breeding spot for counterfeiters.
The real impact of counterfeiting
There will be some who will not get affected by counterfeiting of their products. But there are many for whom, counterfeiting is a major setback for their creativity and years of hard-work. Designers invest a lot of time, money and energy for creating a label. And imagine, after long hauling of work and dedication, what you get is a cheap and counterfeited replica of your brand!
And stepping back from the intangible assets now, counterfeiting has an alarming economical impact in the fashion industry. Millions of revenue, profits and jobs are lost in the fashion industry owing to counterfeiting. All these losses have direct as well as indirect effects on the wider economy. If one sector’s sales are reduced because of counterfeiting, then this sector will also buy fewer goods and services from its suppliers, causing a decline in sales and corresponding employment effects in other sectors.
How to fight back?
Luxury brands have developed ways, often through the court systems, to fight against the development and retailing of counterfeit goods. China is the biggest source of phoney goods, and footwear and apparel are among the most counterfeited merchandise. Most of the fakes almost two-thirds come from this land, which has the distinction of being the world’s largest producer of counterfeit goods.
There are various ways brands are fighting back and giving it hard to the counterfeiters. They are imprinting their signatures and other marks on their products so that the buyer can easily distinguish the fake and the original. Several brands have labels and tags that are uniquely designed so that it cannot be copied fraudulently. Customised tags and labels in different designs and shapes not only add a layer of security with the use of holography but also look aesthetically rich.
It’s just not acceptable to sit back and watch your product getting counterfeited; Fight back if you must, because counterfeiting spares no one.