How counterfeiting tarnishes the brand’s image?

There has been a humungous growth of fake brands in different industries. From counterfeit apparels to spurious medicines, fake footwear to duplicate watches the list seems endless. According to Global Brand Counterfeiting Report, “The amount of total counterfeiting globally has reached to 1.2 Trillion USD in 2017 and is bound to reach 1.82 Trillion USD by the year 2020.”

Brands are not just losing millions of dollars every year due to counterfeit products but are also facing many other challenges. Perhaps, one of the biggest challenges faced by organizations due to counterfeiting is the damage to their brand reputation.

Over the past few years, the proliferation of fake goods has bought a major change in consumer buying behavior. According to sources, a large number of consumers are less likely to buy products from a brand if its reputation has been tarnished due to counterfeit goods. Even in the e-commerce space, consumers are less likely to buy products from websites that have earned a bad name due to counterfeiting.

Counterfeit products have a direct impact on the confidence of the consumers buying a brand. A large number of consumers who have purchased fake products unknowingly never buy the same product again and tend to switch over to another brand.

If a consumer is duped into buying a fake product and later discovers that the product is not worthwhile then it leads to a blow on his confidence in the product and the brand. Moreover, such brands are more susceptible to negative word-of-mouth publicity.

So, if a consumer receives a fake product then there are high chances that the genuine brand and manufacturer may earn a bad reputation.

In the online space, customers leave negative reviews for such brands which jeopardize their reputation. This sometimes creates a false narrative that even brands manufacture low-quality goods. Regular news related to counterfeiting of a specific brand can create an assumption in the minds of consumers that the brand is not serious regarding duplication and is not taking stern measures against counterfeiting.

However, companies across the world are now taking serious measures against the problem of counterfeiting. The online retail giant Alibaba which has earned a bad repute for counterfeit products has made a task force to handle counterfeits on its platform. Besides organizations have also implemented different anti-counterfeiting products and solutions to secure their products and brand.

Holostik provides tailor-made anti-counterfeiting products and solutions which help in securing the product and the brand’s image from the problem of counterfeiting. If you are facing the problem of duplication call us now on +91–785-785-7000 or mail us at connect@holostik.com.

The impact of counterfeiting on the Indian apparel industry

The local clothing industry is the second biggest supporter of the retail business after FMCG. It is valued around Rs 3 lakh crores. The popularity of global brands, changes in inclinations from non-branded to branded, a quickly developing economy and a substantial youthful purchaser base in has made India a profoundly lucrative market. The broad communications and web-based social networking infiltration, the young are getting to fashion conscious. This has opened uncommon doors for the retail showcase.

Market specialists say it is exceptionally hard to evaluate the extent of fake attire. There are numerous manufacturing plants situated at non-descript areas associated with fake items. A large number of them deliver duplicates of multinational brands as edges are high. The movement tricks shoppers as well as the state exchequer. As per insiders, Delhi is the centre of fake items as about 70% fake items start from the national capital.

It’s not a surprise that we usually see cheap grade apparels at different market locations and street shops. As per trade reports, apparels are the second most counterfeited products after footwear across the world. According to Global Brand Counterfeiting Report 2018, “The amount of total counterfeiting globally has reached to 1.2 Trillion USD.”

Apparels are one of most counterfeited products and counterfeiters have copied many famous and costly brands. It is usually difficult to recognise counterfeit apparels at one glance. Some of the best ways through which counterfeit apparels can be determined are its quality of the fabric, stitching, quality of packaging, discrepancies in tags and labels.

Counterfeit apparels can only be stopped with unified efforts of the manufacturers, retailers and consumers at large. Many big brands are using different anti-counterfeiting measures to prevent counterfeiting of their products. This will certainly help them in safeguarding their brand image and prevent further loss.

counterfeit clothes

Ludhiana-facing the wrath of counterfeit clothes

Ludhiana- country’s readymade garments manufacturing hub is facing the onslaught of counterfeiting. The city is brimming with copies of prominent brands. It seems so, that little has been done to ward off the rampant duplication taking place in different parts of the city.

Suckhchain Singh Gill Ludhiana Police Commissioner said that the police has not received any complaint against any manufacturer or seller due to which no action has been taken. The police has no direct role to play in it until and unless it receives any complaint after which it will take necessary action under the purview of law.”

Some sources, however, said that the police had registered many cases against counterfeit manufacturers of phoney branded clothes of CK, CK, LV, Chanel, Tommy, Superdry, Adidas, Puma, Nike, US Polo among others. Moreover, cases were registered against a hosiery owner under the Copy Right Act, Trademark Act under Section 420 of the IPC and these cases were registered on the basis of complaints registered by brand owners of the affected companies.  Sources also revealed that the fake brand business is running blatantly and is evading taxes of the government. Surprisingly, most of the times, a customer does not receive the bill of the fake products purchased.

Requesting anonymity, a seller of fake branded jeans said that the brand conscious youth wants to wear such clothes that’s why they are becoming popular. Fake branded clothes use the trademark and logo of the original product while remaining substandard in quality. Duplicate clothes have uneven stitching, rough ends, faulty colours and many other issues which are rarely noticed by people. He said a branded tracksuit which will cost around Rs 10,000 from an exclusive showroom can be bought for Rs 2,000 to Rs 3,000 from Ludhiana markets.

A retailer said that they sell duplicate brands to genuine customers by making them believe that it is an original item. Several markets in the city have a stock of duplicate products worth several crores lying with them.

Source: TribuneIndia.com

How counterfeiting is proving to be detrimental for the fashion industry?

Counterfeiting of top-notch fashion brands has become a common affair. Not just regular clothing and accessories but even luxury items are being duplicated in large numbers. According to EUIPO (European Union Intellectual Property Office), counterfeiting is worth around 10 % of the fashion brands sold in countries like the UK, Spain and Italy. The countries have some of the highly popular designer brands with a global demand which makes them highly susceptible to counterfeiting. The problem of duplication not just leads to monetary loss but also weakens consumer trust and tarnishes the image of the brand.

Of late, fashion brands have increased their measures against counterfeiting and are ensuring ways to protect their intellectual property. There are different types of anti-counterfeiting solutions available in the market to protect clothes, shoes and other kinds of accessories. Authentication products such as security holograms, security labels and hot stamping foils provide a strong anti-counterfeiting quality to the product. In the past few years, RIFD technology is being widely used to provide product authentication for apparels.

One of the biggest fashion brands Gucci recently asked funeral shops in Hong Kong to not sell their paper versions of goods for burning at funerals. Burning paper replicas of things your deceased ones could want in the afterlife is an age-old tradition. This drew criticism from both the shops and customers.

Despite the crackdown on counterfeiting in the fashion industry weak IPR, corruption and red tapism has turned the measures futile. There is a lack of coordination between the countries on counterfeiting and this has led forgers to grow their business with ease.

An EUIPO report states that manufacturing of duplicate goods often takes place very close to the authentic product. Spare parts and raw materials are assembled in the same Chinese factories which manufacture the counterfeits with the same materials at night. Due to the high level of precision involved in manufacturing both original and fakes it becomes difficult to distinguish between them.

Amongst all the fashion products counterfeit footwears are the most seized products. From designer high heels to sports shoes, boots to limited edition trainers and many such products are being widely counterfeited. The cheap grade copies of popular fashion products can cause confusion in customers and a bad name to brand. However, many customers do not bother the authenticity of a product and buy a knock-off just for the sake of buying a product with the logo. Most times low prices of the copied product play the most important role in attracting a customer who cannot pay for the genuine product which comes at a comparatively higher price.

The issue of counterfeiting is so widespread in the luxury goods and fashion sectors that some people feel it’s almost pointless to try to combat it. Coco Channel dismissed imitations of her iconic tweed suits as good publicity and refused to try to control the fast-moving fashion industry by taking measures against copycats.

The issue of duplication is so prevalent in the fashion industry that many experts feel its useless to fight it. Many luxury brands have resorted to not act against counterfeits because it gives them indirect publicity. However, this is not the case with many other brands which think that stern measures against counterfeiting are the only way to save their image and profits in the long run.