The rise of counterfeiting in the footwear industry

According to a report by OECD (Organisation for Economic Co-operation and Development) and EU’s (European Union’s) Intellectual Property Office states that the footwear industry is the most affected by the problem of counterfeiting. Some of the famous brands affected by counterfeiting or duplication are Nike. Adidas, Sketchers, Reebok, Asics, etc.

Fake footwear represented around 22% of the overall share of counterfeited and pirated goods seized in the year 2016.

Nowadays consumers have become highly brand conscious, but everyone cannot afford a costly branded product. In order to satiate their need for buying luxury goods at low prices, people have shifted their focus towards fake goods. Selling and buying of fake items are illegal as they violate the intellectual property rights of the brands.

With the growth of e-commerce, it has become quite challenging to stop the sale of counterfeits. This is because a consumer cannot differentiate between a genuine and an original product by just seeing an image online.

According to a report, the global footwear market was valued at approximately USD 246.07 billion in 2017 and is expected to generate revenue of around USD 320.44 billion by the end of 2023, growing at a CAGR of around 4.5% between 2017 and 2023.

Fake footwear may fulfil your urge for branded goods, but they easily wear out or may cause injury or accidents many times. Counterfeit footwear leads to loss of profits, drop down in the reputations of the brands and also leads to massive unemployment.

Duplicate footwear can be curbed with the help of effective regulatory measures, the use of anti-duplication technologies and most importantly by generating awareness among the consumers and retailers regarding the drawbacks of fake footwear items. Some of the anti-counterfeiting measures are holograms, security labels, QR codes, holographic films, and other flexible packaging products.

To get the best anti-duplication solution call us on +91-7857857000 or mail us at connect@holostik.com.

Instagram becomes a breeding ground for fake fashion products

According to the analytics firm Ghost Data Instagram has become a breeding ground for the sale and purchase of knockoff fashion products. This includes counterfeit Chanel bags to fake Gucci slides and duplicate Adidas tracksuits. As per a study published in April, around 20% of the Instagram posts on fashion products are about fake products.

The report has identified more than 50,000 accounts involved in the sale of fake products which has increased by 171% from 20,000 accounts in the year 2016. These counterfeit fashion accounts majorly include the knock offs of luxury fashion products.  The accounts have added more than 65 million posts on Instagram and their activity averages to 1.6 million Instagram stories in a month.

The overall business of counterfeit industry is a whopping $1.2 trillion annually. The online counterfeit market has caught the attention of the US government and authorities like the Department of Homeland security and Commerce and other authorities which will be involved in fighting the sale of fakes.

According to Ghost Data, some of the most counterfeited brand items on Instagram are Louis Vuitton, Gucci, Chanel, Nike, Fendi and Balenciaga.  The sale of such knock-offs not just affects the brand’s profit but also adds to other illegal activities.

Source: Vox.com

Counterfeiting of luxury goods- a rising problem for manufacturers

Some of the well-renowned luxury brands like Hermes, Louis Vuitton, Gucci, Adidas etc. have been facing the problem of counterfeiting across the world. Luxury products once available for the elite are now widely available for the rising middle class at slashed prices but mostly in the form of fakes. With the increase in globalisation consumers have become more brand conscious and people are spending a good amount of money on buying costly products. Along with this, the e-commerce market players are heavily investing in selling different kinds of luxury products on their platform.

The growing penchant for e-commerce, the intoxicating pop culture and the average young consumer base which is around 67% of India’s population has led to a massive rise in the demand for luxurious products.

According to trade reports, “Luxury Goods Market is expected to garner $429,762 Million by 2022, growing at a prominent CAGR of 3.9% from 2016 to 2022. Luxury goods are high-value products in terms of price and quality. These goods are mostly considered as status symbols for individuals.”

However, “The Global Brand Counterfeiting Report 2018 estimates that the losses suffered due to global online counterfeiting has amounted to 323 Billion USD in the year 2017, with luxury brands incurring a loss of 30.3 billion dollars through internet sales.”

The global luxury counterfeit market is growing with every passing day. With the availability of technology and poor regulation policies, counterfeiters have been able to develop new counterfeit products. China is a prominent hub of luxury counterfeit products and supplies it to different parts of the world.

From luxury totes to enticing ultra-luxury jewellery all things for the rich and famous are available for you now with ease but only in its duplicate form. The problem of counterfeiting of luxury items can only be eradicated with the use of combined digital and physical security and strict regulation.