As manufactures are determined to produce product with minimal overrun and to specific client specifications to boost per unit profits the market starves for spare parts. This efficiency is understandable but gives rise to illegal product counterfeiting markets trading in such product.

1. How Counterfeit Products Enter the Global Market
Counterfeit product is a result of consumer zeal for particular product, a supply side that cannot keep up, greed,
and dubious business practices by the offenders.
Consumer products are not just handbags or shoes in this case, the products can range from non-vital goods to
life saving medicine. As long as there is a market and a method to manufacture fake goods or diverted legitimate
one illegal trade will exist.
For the sake of clarity in this article we should exclude Gray Market activities, but concede they are a detriment to
the brand holder and in the long run hurt both consumers by driving up cost and the business by cutting profits.
The most effective way to create counterfeit product for market is to manufacture and/or sell in a geographic
location where a lax legal system is present, raw material and labor are cheap and readily accessible.
Products are created than shipped in any number of fashions to the markets that are targeted. Since many of
these markets are outside of the home country of the intellectual property holder finding the counterfeits can be
costly and time consuming.
Not only are these products being shipped direct to the intended markets but many of the manufacture and
relying upon additional “channels” to sell product. One of the fastest growing channels is the online area.
Since online commerce has matured over the past years the ease in which online store fronts can be created and
managed has proven very profitable to counterfeiters. Multiple store fronts, geographically specific offerings, and
local languages all make illegal commerce to unsuspecting consumers easy.
Reports by global manufactures have proven China, year over year; originate the majority of the world counterfeit
items. It should be noted that recently efforts for national and foreign owned intellectual property protection
have resulted in action to curb this behavior.