This document discusses counterfeit branding and its impact. It describes how the counterfeit market has grown beyond luxury goods to include everyday items. Counterfeiters are motivated by profits from leveraging established brands. This impacts original brands by damaging exclusivity and equity if quality is lower. While legal action and consumer awareness can help, counterfeiting may provide some brands visibility and popularity without damaging their image for core customers. The document raises questions about whether counterfeiting benefits brands in some ways.
Brand community - Marketing Management - Manu Melwin Joymanumelwin
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A brand community is a community formed on the basis of attachment to a product or marque. Recent developments in marketing and in research in consumer behavior result in stressing the connection between brand, individual identity and culture.
Commerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumer
It comprises the trading of something of economic value such as goods, services, information, or money between two or more entities.
Commonly known as Electronic Marketing.
âIt consist of buying and selling goods and services over an electronic systems Such as the internet and other computer networks.â
âE-commerce is the purchasing, selling and exchanging goods and services over computer networks (internet) through which transaction or terms of sale are performed Electronically.
As more and more business activates are carried out by the electronic means, it has become more and more important that evidence of these activities should available to demonstrate legal rights and obligations that flow from them.
Cyber crimes have started to create a fear in the minds of many people linked to the networks mostly worried to ecommerce technology as its success lies in the internet. The various mechanisms used for securing internet based transactions or communication can be grouped into
Authorization, Authentication and Integrity
Privacy
Availability by controlling access
Brand community - Marketing Management - Manu Melwin Joymanumelwin
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A brand community is a community formed on the basis of attachment to a product or marque. Recent developments in marketing and in research in consumer behavior result in stressing the connection between brand, individual identity and culture.
Commerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumer
It comprises the trading of something of economic value such as goods, services, information, or money between two or more entities.
Commonly known as Electronic Marketing.
âIt consist of buying and selling goods and services over an electronic systems Such as the internet and other computer networks.â
âE-commerce is the purchasing, selling and exchanging goods and services over computer networks (internet) through which transaction or terms of sale are performed Electronically.
As more and more business activates are carried out by the electronic means, it has become more and more important that evidence of these activities should available to demonstrate legal rights and obligations that flow from them.
Cyber crimes have started to create a fear in the minds of many people linked to the networks mostly worried to ecommerce technology as its success lies in the internet. The various mechanisms used for securing internet based transactions or communication can be grouped into
Authorization, Authentication and Integrity
Privacy
Availability by controlling access
Class Activity done with data accumulation from various internet websites and database sources for better understanding of e-commerce models functioning at present and their uses in Indian scenario.
The Luxury Strategy. Break the Rules of Marketing to Build Luxury BrandsCollin Thompson
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The Luxury Strategy is the definitive work on the essence of a luxury brand strategy. It puts an end to the confusion around the term, and explains the fundamental differences between 'premium', 'fashion', and 'luxury' strategies. Based on an analysis of the social functions of luxury, of worldwide best practices and on first hand direct experience, it sets out the rules for success, and turns established marketing rules upside down. The Luxury Strategy provides the first rigorous blueprint for the effective management of luxury brands and companies at the highest level, including human resources and financial management. It also unveils the original methods that were used to transform small family businesses such as Ferrari, Cartier, Chanel, Gucci, and Ralph Lauren into profitable global brands.
This presentation contains the analysis of a prospective acquisition of Bulgari by LVMH. This exercise was done as a part of a case study competition conducted by JPMorgan. The presentation covers various aspects like DCF Valuation, Trading comps, Transaction Comps, Synergy estimation, Acquisition financing etc.
Influence of counterfeiting on luxury brandsFaridaBakkalla
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Made as a college presentation, this slide show tells you how luxury fashion brands are affected by the counterfeiting of goods that happens on a frequent basis.
Class Activity done with data accumulation from various internet websites and database sources for better understanding of e-commerce models functioning at present and their uses in Indian scenario.
The Luxury Strategy. Break the Rules of Marketing to Build Luxury BrandsCollin Thompson
Â
The Luxury Strategy is the definitive work on the essence of a luxury brand strategy. It puts an end to the confusion around the term, and explains the fundamental differences between 'premium', 'fashion', and 'luxury' strategies. Based on an analysis of the social functions of luxury, of worldwide best practices and on first hand direct experience, it sets out the rules for success, and turns established marketing rules upside down. The Luxury Strategy provides the first rigorous blueprint for the effective management of luxury brands and companies at the highest level, including human resources and financial management. It also unveils the original methods that were used to transform small family businesses such as Ferrari, Cartier, Chanel, Gucci, and Ralph Lauren into profitable global brands.
This presentation contains the analysis of a prospective acquisition of Bulgari by LVMH. This exercise was done as a part of a case study competition conducted by JPMorgan. The presentation covers various aspects like DCF Valuation, Trading comps, Transaction Comps, Synergy estimation, Acquisition financing etc.
Influence of counterfeiting on luxury brandsFaridaBakkalla
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Made as a college presentation, this slide show tells you how luxury fashion brands are affected by the counterfeiting of goods that happens on a frequent basis.
Luxury Brands (15th Alex Marketing Club) by Mr.Mohamed AttiaMahmoud Bahgat
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Luxury Brands (15th Alex Marketing Club) by Mr.Mohamed Attia
to attend & Get the Address Confirm to me on Pvt WhatsApp
#Mahmoud_Bahgat
00966568654916
#Marketing_Club
Only If you are a Marketer Register as a member & or a Speaker in the link
http://goo.gl/forms/RfskGzDslP
â â â â â â â â â â â â â â
ŘŹŘąŮبات ؎اؾ؊ ؚاŮŮاتساب ب
Ů Řب٠اŮؚ٠٠ŮاŮŘŞŘłŮŮŮ ŮاŮ٠ستŮبŮ
ŘşŮŘą ؚا٠ŮŮ٠باŮŘŞŘłŮŮŮ ŘاŮŮا ŮŮŘŞŘšŮŮ
â ŘŁŮ٠اŮŘĽŘšŮاŮات ŮاŮŘŁŮŮاع ŮاŮŮتب Ů٠اŮŘŞŘłŮŮŮâ
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ŮŮء اشتعا٠اŮŘŹŘąŮبات
ŮŮŮŘł ŘŘśŮŘą ا؏ت٠اؚات Ůاد٠اŮ٠اعŮŘŞŮŮŘŹ
â *(اŮ٠اعŮŘŞŮعز ŮŮŮ ŘŹŘąŮبات ؎اؾ؊)*â
ŮŮستءŮŘšŮا ŘŘśŮŘą اŮا؏ت٠اؚات اŮŘ´ŮŘąŮŘŠ ŮŮŮا
â اشتع٠ŮŮ ŘŹŘąŮب ŮاŘŘŻ Ů ŮŮŮ ŮŮء ŘŻŮŘł ŘšŮ٠اŮŮŮŮŮ â
Marketing club 19 (Future)
https://chat.whatsapp.com/IqDyV0a7GcPIKhcSKan8zD
Marketing club 20 (Future)
https://chat.whatsapp.com/Kt0SlWIeh3n8JPNrUKBOX8
â â â â â â â â â â â â â â â â
Marketing Club Middle East
Since 29 October 2015
We have 7 groups whatsapp
with 750 marketers
From all middle east
since 9 years
& now 13 more groups
For Marketing Club Lovers as future Marketers
Many non Marketers yet have asked to Attend the Club
((We Wish All can Attend,But Cant right now but soon we will..))
Criteria for attending Marketing Club Meetings
â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘â˘
For Better Harmony & Mind set.
Must be only Marketer
Also Previous Marketing experience
âBusiness Managers
âCountry Manager,GM
âDirectors, CEO
Are most welcomed to add Value to us.
â â â â â â â â â â â â â â â â
ă *Unmatched Criteria*ă till we allow all soon
Not Med Rep,
Not Key Account,
Not Product Specialist,
Not Sales Supervisor,
Not Sales Manager,
ââââââââââââââââââ
But till you become a marketer
you can join our What'sApp group
Marketing Lover Future Club Group
â â â â â â â â â â â â â â â â
ă *Unmatched Criteria*ă
For Conflict of Interest
Also Can't attend
If Working in a Marketing Services Provider
=not Hotel or tourism
=not Restaurant
=not Advertising
=not Event Manager
=not Market Researcher
â â â â â â â â â â â â â â â â
this Club for Only Marketers
Soon will open for all
Very Soon we will have
â Business Leaders Club â
For Sales Managers & Directors
Will be Not for Marketers
â â â â â â â â â â â â â â â â
ŘŹŘąŮب ŮŘľŮŘŘŠ اŮ٠اعŮŘŞŮŮŘŹ ŮŮŮŮب ؚاŮŮŮسبŮŮ
#Marketing_Club Group on Facebook
https://www.facebook.com/groups/837318003074869/
Now we can talk freely In all marketing topics
As open discussion all the time
On our Facebook group
Without disturbing anyone
on our 16 what'sApp groups
To keep what's app groups simple &to the point
Only 2 or 3 posts daily
â اتŮŮ٠بعاŘŘŞŮ ŘšŮ٠اŮŮŮسبŮŮâ
ŮŘŽŮ٠اŮŮاتساب ŘľŮŘą ŮŮتب٠ŮبŮستات Ůا٠ŮŘŠ ŮŮء ŘŘŞŮ Ůا Ůزؚ؏ اŮŮاس
اشتع٠اŮآ٠ŮŮ ŘľŮŘŘŠ اŮŮŮسبŮŮ
https://www.facebook.com/MarketingTipsPAGE/
اشتع٠اŮآ٠ŮŮ ŘŹŘąŮب اŮŮŮسبŮŮ
https://www.facebook.com/groups/837318003074869/
Ůتس؏Ů٠بŮŮات٠ŮŘŞŘľŮ٠بؚ؜ اŮŮ Řا؜عات ŮŮ ŘŁŮ Ů٠ؚاŮاŮŮ ŮŮ
http://goo.gl/forms/RfskGzDslP
#Marketing_Club
#Mahmoud_Bahgat
00966568654916
â â â â â â â â â â â â â â â
What is Luxury and how do Luxury brands work?
Key trends in the Luxury marketplace
Know vs. Show â the Luxury consumer
The Recession and the Luxury consumer
This slideshare is about the current environment in the luxury and fashion industries due to Covid-19 including accelerating trends, interesting initiatives launched by companies across industries, challenges and opportunities faced, and resulting calls-for-action.
For too many years marketing and sales have operated in silos...while in some forward thinking companies, the two organizations work together to drive new opportunity development and revenue. This session will explore the lessons learned in that beautiful dance that can occur when marketing and sales work together...to drive new opportunity development, account expansion and customer satisfaction.
No, this is not a conversation about MQLs and SQLs. Instead we will focus on a framework that allows the two organizations to drive company success together.
The session includes a brief history of the evolution of search before diving into the roles technology, content, and links play in developing a powerful SEO strategy in a world of Generative AI and social search. Discover how to optimize for TikTok searches, Google's Gemini, and Search Generative Experience while developing a powerful arsenal of tools and templates to help maximize the effectiveness of your SEO initiatives.
Key Takeaways:
Understand how search engines work
Be able to find out where your users search
Know what is required for each discipline of SEO
Feel confident creating an SEO Plan
Confidently measure SEO performance
5 big bets to drive growth in 2024 without one additional marketing dollar AND how to adapt to the biggest shifting eCommerce trend- AI.
1) Romance Your Customers - Retention
2) âAlternativeâ Lead Gen - Advocacy
3) The Beautiful Basics - Conversion Rate Optimization
4) Land that Bottom Line - Profitability
5) Roll the Dice - New Business Models
10 Video Ideas Any Business Can Make RIGHT NOW!
You'll never draw a blank again on what kind of video to make for your business. Go beyond the basic categories and truly reimagine a brand new advanced way to brainstorm video content creation. During this masterclass you'll be challenged to think creatively and outside of the box and view your videos through lenses you may have never thought of previously. It's guaranteed that you'll leave with more than 10 video ideas, but I like to under-promise and over-deliver. Don't miss this session.
Key Takeaways:
How to use the Video Matrix
How to use additional "Lenses"
Where to source original video ideas
SMM Cheap - No. 1 SMM panel in the worldsmmpanel567
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Boost your social media marketing with our SMM Panel services offering SMM Cheap services! Get cost-effective services for your business and increase followers, likes, and engagement across all social media platforms. Get affordable services perfect for businesses and influencers looking to increase their social proof. See how cheap SMM strategies can help improve your social media presence and be a pro at the social media game.
It's another new era of digital and marketers are faced with making big bets on their digital strategy. If you are looking at modernizing your tech stack to support your digital evolution, there are a few can't miss (often overlooked) areas that should be part of every conversation. We'll cover setting your vision, avoiding siloes, adding a democratized approach to data strategy, localization, creating critical governance requirements and more. Attendees will walk away with actions they can take into initiatives they are running today and consider for the future.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. Youâll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. Youâll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customerâs journey. By the end of the session, youâll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
⢠Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
⢠Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
⢠Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
⢠Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CROVWO
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In todayâs era of AI, personalization is more than just a trendâitâs a fundamental strategy that unlocks numerous opportunities.
When done effectively, personalization builds trust, loyalty, and satisfaction among your usersâkey factors for business success. However, relying solely on AI capabilities isnât enough. You need to anchor your approach in solid principles, understand your usersâ context, and master the art of persuasion.
Join us as Sarjak Patel and Naitry Saggu from 3rd Eye Consulting unveil a transformative framework. This approach seamlessly integrates your unique context, consumer insights, and conversion goals, paving the way for unparalleled success in personalization.
The digital marketing industry is changing faster than ever and those who donât adapt with the times are losing market share. Where should marketers be focusing their efforts? What strategies are the experts seeing get the best results? Get up-to-speed with the latest industry insights, trends and predictions for the future in this panel discussion with some leading digital marketing experts.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
SEO as the Backbone of Digital MarketingFelipe Bazon
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In this talk Felipe Bazon will share how him and his team at Hedgehog Digital share our journey of making C-Levels alike, specially CMOS realize that SEO is the backbone of digital marketing by showing how SEO can contribute to brand awareness, reputation and authority and above all how to use SEO to create more robust global marketing strategies.
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
Core Web Vitals SEO Workshop - improve your performance [pdf]Peter Mead
Â
Core Web Vitals to improve your website performance for better SEO results with CWV.
CWV Topics include:
- Understanding the latest Core Web Vitals including the significance of LCP, INP and CLS + their impact on SEO
- Optimisation techniques from our experts on how to improve your CWV on platforms like WordPress and WP Engine
- The impact of user experience and SEO
How to Run Landing Page Tests On and Off Paid Social PlatformsVWO
Â
Join us for an exclusive webinar featuring Mariate, Alexandra and Nima where we will unveil a comprehensive blueprint for crafting a successful paid media strategy focused on landing page testing.With escalating costs in paid advertising, understanding how to maximize each visitorâs experience is crucial for retention and conversion.
This session will dive into the methodologies for executing and analyzing landing page tests within paid social channels, offering a blend of theoretical knowledge and practical insights.
The Pearmill team will guide you through the nuances of setting up and managing landing page experiments on paid social platforms. You will learn about the critical rules to follow, the structure of effective tests, optimal conversion duration and budget allocation.
The session will also cover data analysis techniques and criteria for graduating landing pages.
In the second part of the webinar, Pearmill will explore the use of A/B testing platforms. Discover common pitfalls to avoid in A/B testing and gain insights into analyzing A/B tests results effectively.
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Valters Lauzums
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E-commerce in 2024 is characterized by a dynamic blend of opportunities and significant challenges. Supply chain disruptions and inventory shortages are critical issues, leading to increased shipping delays and rising costs, which impact timely delivery and squeeze profit margins. Efficient logistics management is essential, yet it is often hampered by these external factors. Payment processing, while needing to ensure security and user convenience, grapples with preventing fraud and integrating diverse payment methods, adding another layer of complexity. Furthermore, fulfillment operations require a streamlined approach to handle volume spikes and maintain accuracy in order picking, packing, and shipping, all while meeting customers' heightened expectations for faster delivery times.
Amid these operational challenges, customer data has emerged as an important strategy. By focusing on personalization and enhancing customer experience from historical behavior, businesses can deliver improved website and brand experienced, better product recommendations, optimal promotions, and content to meet individual preferences. Better data analytics can also help in effectively creating marketing campaigns, improving customer retention, and driving product development and inventory management.
Innovative formats such as social commerce and live shopping are beginning to impact the digital commerce landscape, offering new ways to engage with customers and drive sales, and may provide opportunity for brands that have been priced out or seen a downturn with post-pandemic shopping behavior. Social commerce integrates shopping experiences directly into social media platforms, tapping into the massive user bases of these networks to increase reach and engagement. Live shopping, on the other hand, combines entertainment and real-time interaction, providing a dynamic platform for showcasing products and encouraging immediate purchases. These innovations not only enhance customer engagement but also provide valuable data for businesses to refine their strategies and deliver superior shopping experiences.
The e-commerce sector is evolving rapidly, and businesses that effectively manage operational challenges and implement innovative strategies are best positioned for long-term success.
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...
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Counterfeit Branding Market
1. Counterfeit branding: Impact on luxury brands,
consumers and the retail ecosystem
Submitted by Arnab Aditya Sethi (PGP/17/136) as a part of the PPBM Course Assignment
2. 2
Contents
Abstract...................................................................................................................................................3
Introduction ............................................................................................................................................4
The âCounterfeit Brandingâ Market.........................................................................................................4
Motivations for Counterfeit Branding ....................................................................................................5
A) Manufacturerâs Perspective ...........................................................................................................5
B) Consumerâs Perspective .................................................................................................................5
Impact on Original Brands and Brand Equity..........................................................................................6
How to prevent counterfeit branding?...................................................................................................6
A) Brand Perspective...........................................................................................................................6
B) Consumer Perspective....................................................................................................................7
The big question: Does counterfeit branding help the original brand in any way? ...............................7
Conclusion...............................................................................................................................................8
References ..............................................................................................................................................9
3. 3
Abstract
Tin this article we shall discuss about counterfeit branding. The main reasons behind
counterfeiting and the motivations of this kind of a branding shall be discussed. The impact of
counterfeiting on famous brands and its brand equity could be huge. Big brands suffer a lot due
to the cheap knockoffs present in the market, ultimately hampering their brand value. This
article shall also cover another interesting perspective of counterfeit branding, whether the
impact of counterfeits is always negative on the original or could it possibly be positive as
well? The article would also throw some light about the market size of counterfeit products,
the products affected by counterfeiting, different causes for counterfeit branding and the impact
of counterfeit branding on brand equity of a company in this article.
4. 4
Introduction
Counterfeiting refers to manufacturing goods which often look very similar to a high quality
product from a well-established brand. Generally, most of the counterfeit products are of low
quality and are visual replicas of the genuine products. Counterfeit products are sold under
trademarks which are very similar to a genuine brand and distinguishing it product from the
genuine product becomes very tough. Most of the counterfeit products sold in the 90s and the
early 2000s were cheap knockoffs of highly reputed and valuable luxury products. Nowadays,
the scenario is much more complex with counterfeiting becoming rampant not only in the
luxury segment but also across FMCG and retail sectors, which is quite alarming for big brands
and labels as they could be the next target for counterfeit goods manufacturers.
The âCounterfeit Brandingâ Market
Although there are laws preventing the production, sale and purchase of counterfeit products
in most of the countries, the market for counterfeit brands seems to be growing globally. In
most of the countries, counterfeiting is considered to be a theft of intellectual property and
results in severe punishments. Earlier, these fake replica products were mostly sold on the
streets but nowadays with the advent of technology, these products are available in online e-
Commerce stores abundantly. With the advent of technology, it has become easier for these
manufacturers to sell replicas and knock offs easily and globally, making it difficult for law
enforcement agencies to nab the culprits.
Counterfeit products were typically related to high quality and coveted luxury brands like Louis
Vuitton, Rolex and Chanel earlier. The product categories were generally perfumes, leather
accessories like handbags and wallets, gemstone studded watches and jewellery. The dynamics
of this market has greatly changed now and according to a World Customs Organization report,
Nike and Apple were the most counterfeited brands in 2013 followed by brands operating in
different sectors such as Mac cosmetics and Walt Disney. This makes it clear that the
counterfeiting industry is not limited to fashion and luxury anymore, it has spread out to
technological products and daily wear items such as shoes. In the consumer beverages sector,
Coca Cola is the most replicated brand. Not only beverages but even chocolates, cakes, eatables
and what not are being sold by fake branding.
According to a report released by UN titled âTransnational Organized Crime in East Asia and
the Pacificâ, more than 70% of the counterfeit goods confiscated comes from China itself. The
5. 5
total worth of the counterfeit brands is estimated to be approximately 2% of the global world
trade, almost 600 billion USD. Upcoming brands need to incorporate strategies that will help
them effectively deal with this menace.
Motivations for Counterfeit Branding
A) Manufacturerâs Perspective
The question now arises that why do companies pursue counterfeit branding? Not only the
cheap knock offs but many entry level brands also try to imitate the trademarks of premium
brands to get customers on board. Countries such as China have huge manufacturing facilities
which makes the work easy for counterfeiters. The main reason behind this is to exploit the
brand value of premium products. Manufacturers know that top brands create iconic products
with a lot of branding expenditure and R&D activities which they wonât be able to pursue. So
they take the easier route and using the well established brand and its name, manufacture
replicas and sell it through various âblack marketâ channels. By this way, counterfeit
manufacturers obtain a steady cash flow and are on the hunt for another brand. Lower quality
of products coupled with cheap labour keeps the price low and provides them with huge profit
margins.
B) Consumerâs Perspective
Replicas or counterfeit branded products sell easily in the market and that is the reason why
people manufacture those. There is as much demand or even more compared to the supply in
these kinds of products. The primary reason is aspiration of premium and luxury products.
There are lots of customers who aspire to own a luxury product, such as a Michael Kors watch,
will simply not be able to afford it. In that case, they look for replicas or counterfeit branded
products, which copy the original trademark and satisfy their urge of showing their status
symbol using the exclusivity and luxury associated with the original item. It is not always that
consumers look for knockoffs. Sometimes, the consumers are cheated to buy a fake item and
they do not even realize it. The most alarming issue is that many consumers might have been
buying fake products since long but would not have realized it yet due to the advancements in
technology, which allow fake products to be very very similar to the original one. Hence, a
customer buys replicas of branded goods either by knowing the fact that it is fake but is still
6. 6
useful to satisfy his status symbol needs or the fake brand could be cheating the customer
without his knowledge. These are two completely different scenarios but have one thing in
common: they impact the actual brand and its profits in question.
Impact on Original Brands and Brand Equity
Counterfeit products are manufactured to gain huge profits by leveraging from a well-known
and established brand with high brand equity. The presence of knock offs in the market can
hamper the brand value negatively by affecting the exclusivity and uniqueness associated with
many luxury and premium brands. Also, imitating the trademark of the brand essentially puts
the brand at a risk because the manufacturers of fake products do not care about the quality of
the products, often offering poor services to customers, thereby diluting the brand equity in
minds of customers unable to differentiate between the genuine product and the knockoff.
A brand requires a lot of time, money and effort to develop its product range and build its brand
personality. Counterfeits have no such expenditures or efforts, nor is their brand value at stake.
They just identify high potential brands and copy its trademark and products, often leading to
a very low quality product and dampening the reputation of the genuine products. In many
cases, many luxury brands can lose their brand premium and market share, if knockoffs are
kept unchecked. Revenue losses are inevitable as brand loyalty is distorted and brand equity is
destroyed. Luxury brands invest large amounts of capital to ensure each and every aspect of
their product is quality checked to highest standards to command the price premium, which
goes in vain.
How to prevent counterfeit branding?
A) Brand Perspective
From a luxury brands perspective, it is imperative to bring a check on the global appetite of
customers for cheap replicas to win the fake branding war. As long as there is demand, illegal
suppliers will carry on with their business and find loopholes to escape punishment. In most of
the countries, there are stringent laws related to both, sale and purchase of counterfeit products.
Brands should take the legal route to curb the replica market. Apart from taking action on the
suppliers or manufacturers, the customers of fake products should also be dealt suitably if it is
confirmed that he/she is knowingly purchasing an illegal product. The quantity of counterfeit
7. 7
products confiscated by international excise departments globally are increasing at a healthy
rate every year. Brands should cooperate with these agencies and try to nab all those involved
in illegal copying of their products and trademarks. Apart from that, a certificate of authenticity
with a differentiating hologram could be provided with the product to make sure that loyal
customers of the brand do not fall victim to fake products. As for the other lot of customers
wanting to buy counterfeit goods intentionally, negative reinforcement should be created using
the legal channel with stricter punishments. If not completely stop counterfeit branding
activities, these steps will act as a barrier for new entrants in this industry.
B) Consumer Perspective
Many consumers fall in the trap of cheap counterfeit products due to the irresistible deals and
discounts offered on these items. To prevent these, consumers looking for a specific brand
should purchase only from the brand stores or authorized retail outlets. In case of online
purchases, consumers should be well versed with the return policy and purchase from a reputed
seller portal. According to many researches done in this field, the thumb rule is that if any deal
seems too good to be true, then most probably it is. Many brands have a unique identifier such
as a serial number on every product. Consumers can easily confirm the serial number with the
brand directly to make sure that the item is not a fake. This is true in case of electronic devices
as well as premium luxury products. However, it becomes dicier in case of apparels where
identifying original from duplicate trademarks could be difficult for some. In such a case, it is
always advisable to purchase from an authorized channel to prevent from being fooled by
bogus brands using trademarks of other reputed ones.
The big question: Does counterfeit branding help the original brand in any
way?
After going through many pieces of research papers and other relevant literatures on counterfeit
branding, a few questions pop in my mind such as even after having legal power in hands, why
are many brands not very eager in fighting counterfeit branding and fake products? Is there
some kind of benefit to these brands due to their replicas being circulated in the market? What
kind of advantage would these brands be getting over other brands not being âcounterfeitedâ?
There are some missing parts of the puzzle which is not clear from the top. However, I believe
that there could be a few reasons for this.
8. 8
Firstly, for luxury brands, there are two different potential segments of customers. One is the
upper class person who connects well with the brand and purchases the products because he/she
finds the brand personality and values matching with their own. The second set comprises of
people who cannot really afford to buy the products because of their very high price and it
could be a long term aspirational product for them. In order to satisfy their symbolic needs,
they have no option but to purchase a replica, if available, and satisfy their needs. However,
the brand value is not generally adulterated in the eyes of the first set of exclusive customers
because they are connoisseurs of the brand and they can easily identify if a product is fake just
by looking at it. There is also almost no cannibalization by counterfeit products because the
two sets are completely different. Customers buying genuine products will never buy a fake
one and vice-versa. In the meanwhile, these fae products provide visibility to the brands in the
market. For example, Louis Vuitton is one of the most famous and biggest brands in luxury
accessories space and ironically, it is the most counterfeited brand in its segment. Similarly,
Apple is the most famous and most counterfeited technology brand. The question that still
remains is, whether popularity and brand value of the brand is responsible for the counterfeiting
or whether counterfeiting of these products have helped them gain visibility in the market
encompassed by hundreds of other brands.
Conclusion
From the article, it can be concluded that âCounterfeit Brandingâ is a huge market and it is
growing steadily. This means that the demand for counterfeit products is also growing with
more and more customers ready to buy the replica and show off their âstatusâ. This affects the
actual brand and in some cases, could even cost the brand more than they had estimated. Hence,
brands need to be more proactive and take legal support to eradicate this practice. Consumers
should also make themselves aware before purchasing products prone to counterfeiting. At the
end, an intriguing question arises that whether brands have any kind of an advantage if their
trademark is being imitated and products counterfeited?
9. 9
References
ď§ Cademan, Arvid et al (2012), The effect of counterfeit brands on luxury products: An empirical
investigation from the consumersâ perspective, Linnaeus University School of Business and
Economics.
ď§ Wilcox, Keith et al (2008), Why do consumers buy counterfeit luxury brands? , Latin American
Advances in Consumer Research (Vol. 2)
ď§ Kapferner, Jean-Noel and Michaut, Anne (2014), Luxury counterfeit purchasing: The collateral
effect of luxury brandsâ trading down policy, Journal of Brand Strategy Vol 3, No 1, 59-70
ď§ Penz, Elfreide and Stottinger, Barbara (2005), Forget the âRealâ ThingâTake the Copy! An
Explanatory Model for the Volitional Purchase of Counterfeit Products, Advances in Consumer
Resarch (Vol 32)
ď§ Hamm, Kathrin (2009), Effects of counterfeiting on the image of luxury brands in China, China
Business and Research 2009
ď§ P. Chaudhry and A. Zimmerman (2013), Protecting Your Intellectual Property Rights, Springer
Science+Business Media New York