Luxury goods used to be just that, however as demand grew, attaining luxury goods became more affordable.If you want a Louis Vuitton bag, you can have one, but why pay the full price when you can buy a counterfeit for a mere fraction?
This is the problem and dilemma facing luxury brands today.
The good news is that as the industry educates consumers, tightens security and cracks down on perpetrators, counterfeit luxury goods have decreased in their prevalence. The bad news is that luxury goods companies are still losing almost $12 billion a year. When the luxury goods market is valued at $260 billion and companies lose $6 billion of this to counterfeiters, that’s a lot of profit being stolen.
Louis Vuitton, Gucci and Channel, in that order are the three most commonly counterfeited brands, but don’t kid yourself that it doesn’t affect every single luxury goods company. It’s not just the profit lost, it’s the air of exclusivity so essential to a luxury brand, that is diluted and lost under the proliferation of fakes. If everyone has a Chanel handbag, the elite and fashionable won’t buy them, meaning that the real loss of profit is not from the sales of the fakes, it’s from the disgust and distrust generated by the fakes, affecting loyal customers.
40% of counterfeit trade occurs digitally. 86% of counterfeiting occurs in China and Hong Kong, for a US or European based brand, the options may seem limited, but it is possible to protect yourself.
Register your trademark in China as soon as you can. Hire the best lawyers and make sure to work with security firms to protect your brand and your products.Nanotechnology, the internet of things, authentication, taking down websites, more police action, lawyers, all help to stem the tide. QR and RFID schemes use blockchain technology to prevent fraud and counterfeiting, tracking the items from warehouse to retail to consumer.
Large shipments of counterfeit luxury goods can be stopped and seized but small shipments of one luxury good to one customer, is much harder to track and yet 63% of counterfeit luxury goods are sent in small parcels. Manufacturers must be shut down at the source, It’s important to track websites and sellers online and break the chain of supply and arrest and punish the main manufacturers and counterfeiters. That’s where we come in. We use technology based solutions combined with educating your customers and legal action, to ensure the safety of your brand.
One fifth of posts on social media about luxury goods are from counterfeiters promoting counterfeit luxury goods. With billions of users, how do you keep on top of who’s selling your merchandise behind your back? You call us, sit back and watch us take care of the counterfeiters so that you can concentrate on what really matters to you and your customers.