Brand Counterfeiting

2733 Words6 Pages

INTRODUCTION: A company’s brand is one of its most valuable assets (Green and Smith 2002). Brands owners invest millions of dollars every year in advertising and promotion to raise awareness and create demand for their brands. With the growing trend of outsourcing manufacturing processes to emerging economies, brands are facing an increasing growth of counterfeit goods. These goods attempt to imitate luxury brands, which in the long run erode the value and the reputation of the brands (Staake et al. 2009). Consequently, counterfeits are becoming a growing concern for status, prestige and luxury brands. Reviewing the existing literature on this topic, this essay attempts to look at the scale of counterfeiting, the reasons for its growth and the consumer’s attitudes towards counterfeited products. It also provides information about how the counterfeit market poses challenges for customer-brand relations and the strategies that brands can implement to overcome these challenges. EXPLANATION OF TERMS: Counterfeiting refers to the unwarranted use of a company’s brand name, logo and the like (Staake et al. 2009). Deceptive counterfeiting is where the consumers do not know that the goods are counterfeited. In non-deceptive counterfeiting, the customer is fully aware that the goods they are purchasing are not authentic. This paper focuses on the second type of counterfeiting as consumers are aware that they are buying counterfeited luxury goods. Dubois and Czellar (2002) refer to luxury brands as those goods that can offer comfort, beauty and refinement. On the other hand, a prestige brand is referred to as a brand that has achieved a definitive level of accomplishment, either in the quality or performance. O’Cass a... ... middle of paper ... ...anagement, 11(2): pp. 67-88. Philips, T. (2005), ‘Knockoff: The Deadly Trade in Counterfeit Goods’, (Sterling, VA: Kogan Page Ltd.). Shultz II, C.J and Saporito, B. (1996), ‘Protecting Intellectual Property: Strategies and Recommendations to Deter Counterfeiting and Brand Piracy in Global Markets’, The Columbia Journal of World Business, 31(1): pp. 18-28. Staake, T., Thiesse, F. and Fleisch, E. (2009), ‘The Emergence Of Counterfeit Trade: a Literature Review’, European Journal of Marketing, 43(3/4): pp. 320-349. The Anti-Counterfeiting Group. (2008), ‘The Sale of Counterfeiting’, (England & Wales): pp. 1-3. Available at: http://www.southampton.gov.uk/Images/Scale%20of%20Counterfeiting_tcm46-198937.pdf [Accessed 19 March 2011]. Trembly, A.C. (1999), ‘Cyber Crime Means Billions in Losses’, National Underwriter Property and Causality, 103(26): pp. 19.

Show More
Related

  • LVMH?s Diversification

    343 Words  | 1 Pages

    Secondly luxury products are easy to counterfeit, some countries such as china, turkey, and other still have to improve their IPR policies

    Read More

  • Normative And Informative Susceptibility

    2022 Words  | 5 Pages

    Consumer attitudes are influenced by social pressure which is inclusive of informative and normative susceptibility (Ang, et al., 2001; Bearden, Netemeyer, & Teel, 1989; Wang, Zhang, & Ouyang, 2005). Normative consumers are more concerned with impressing others and ensuring that their behaviors are based on the expectations of others. Since counterfeiting is an unethical and illegal activity and involvement in such an activity does not project a positive image, therefore normative consumers would have negative attitude towards counterfeit products (Ang, et al., 2001; Lord, Lee, & Choong, 2001; Penz

    Read More

  • Essay On Hasbro

    2358 Words  | 5 Pages

    Hasbro faces a significant threat from counterfeits of its products. As the market for toys and games is increasing globally, the parallel market for counterfeit toys is also on the rise. Such activity rises especially during the festive months when toy sales are expected to be high. Counterfeits pose a threat to the toys and games market, not just in terms of lost business and brand dilution, but also by selling products that can be potentially dangerous to children of all ages. Low quality counterfeits reduce consumer confidence in branded products like Hasbro. Counterfeits not only deprive revenues for the company but also dilute its brand image.

    Read More

  • Luxury Vs Luxury

    703 Words  | 2 Pages

    Luxury goods are not the necessities but are very much desirable to people which is supported by a share of money income. They are not easily available and affordable for everyone but due to the coming up of competition in market this has been changed. Nowadays, every individual wants to raise their self high and wants to be different from everyone. Since, the times have changed luxury goods have become more affordable for middle class consumers. Whenever we open our social media accounts such as Instagram, snapchats or news on internet or be it the reality shows, it is full of rich people showing off their dresses, bags, accessories etc. Such news put an impact on our inner thinking about our need to look and feel good through rich possessions. Several manufactured goods have become luxury goods as they are designer, durable and better quality. These goods are considered as luxury goods by the consumers because they play a role of status and class for those who showcase or owns them. These items are not necessarily better than less expensive substitutes are purchased with the main purpose of showcasing their wealth. These kinds of goods are object of socio-economic phenomenon which includes watches, jewelleries, designer clothes and accessories, large

    Read More

  • An Analysis Of Larry Shiner's The Invention Of Art

    1734 Words  | 4 Pages

    Are items created for profit physically any different from their “authentic” counterparts? At an atomic level, perhaps, but the untrained eyes of most tourists would probably not find any dissimilarities between a mass-produced mask and a more “authentic” one. Yet we as a society treat economically motivated primitive art as different from the primitive art actually used in rituals, which indicates that economic motivations can definitely influence our perceptions of art. This realization still brings us back to the question posed in the last paragraph, however: why would people treat Renaissance art as valuable and advertising as beneath their notice if both have economic motivations behind their

    Read More

  • Crime of Fashion: Counterfeiting Goods in the Fashion Industry

    2652 Words  | 6 Pages

    There is a saying: “Monkey see, Monkey do.” In today’s world, it seems that it’s only natural for humans to imitate what they see works in society. Though there are beneficial facets for imitating, there are also damaging consequences. Counterfeit is a strong word that describes companies that forge bills or create fake fashion goods, electronic items, and even pharmaceuticals. For the purpose of this research, the focus will be on the different aspects of counterfeiting goods in the fashion industry. Though fashion has continuously changed, been reinvented and some even being dubbed ‘classics’, one thing will always remain: a designer’s ability to express creativity. Fashion is mainly dictated by trends whether they are past, present, or future, making counterfeiting in the fashion industry is a very lucrative, multibillion industry. The current economic climate allows for luxury to be almost ludicrously unaffordable. With high demands for low cost items, the market thrives on consumers’ obsession with spending while saving at the same time. With the 21st century’s expectations and having the need to be worth something, it yields an unstoppable industry. This is especially prominent among women because they are predominantly image-based and willing to hunt for the perfect equilibrium between trend and price. The desire to appeal a certain way induces counterfeiting. Fashion savvy shoppers long for that moment when they can afford Christian Louboutin, Louis Vuitton, Hermes, and other rare or out of reach goods. The more unobtainable the product, the more desirable it is. It is not a surprise that many are willing to purchase the counterfeit than the authentic due to its resemblance and price. Counterfeiting affects the industry be...

    Read More

  • Prada: A Case Study

    2831 Words  | 6 Pages

    The high pressure luxury brand industry has evolved over the last few decades from a small and selective to a multibillion dollar arena offering significant potential and growth opportunity for the luxury brands that compete within its realm. With many luxury brands competing for over $225 billion (The Economist, 2009) in revenue each year it is easy to see how strategy plays an important role.

    Read More

  • Counterfeiting And Piracy Essay

    1574 Words  | 4 Pages

    Counterfeiting and piracy has affected the economy worldwide and is continuously growing at a steady pace. Counterfeiting can be defined as the manufacturing of any product with the intentions of closely resembling the appearance of another product to mislead consumers into thinking that they have the authentic creation. Examples of counterfeiting include trademark infringement, copying of packaging, copyright infringement, or copying any other significant features in another product. Piracy can be defined as the production and distribution of products and materials that are copyright protected while making such materials available on online networks without the authorization of the right owner which is required by law. There are

    Read More

  • Luxury Brand Essay

    726 Words  | 2 Pages

    However, when looking to create a luxury brand, one must go beyond what is required of an ordinary brand, to create something of high value and therefore high prices. So instead of just having brand values, it should have brand beliefs, as this will create a stronger emotional connection with its customers. It should aim to go beyond having a logo, but rather a set of distinguishable icons and the brand’s points of sale needs to be somewhere that connects with its customers and becomes something of a pantheon among other retail outlets. Similarly the customer segmentation should have role reversal, so the customers want to buy their products. Luxury brands should instead of actively promoting their advantages over their competitors, never push the customers into buying their products, thereby offering mystique and letting the customers make the value creation. Lastly, a true luxury brand not only offers products but rather a way of life, allowing them to branch out over several product categories, into every aspect of their customer’s

    Read More

  • Luxury Case Study

    705 Words  | 2 Pages

    However to make a brand “luxury” your audience must feel the brand, go on a historic journey to their roots and in the end make you want to buy their product, as Chip Compton states (brittonmdg, 2014) “Luxury is, well, a luxury. You like it, but you don’t need it!” a luxury brand has to give you this sense of amazement to enforce the idea that what your spending on is the best of the best, this is not only done verbally through the shop assistants influence but its also don’t visually through the interior design, the logo, color pallet and even the packaging. It’s the extra mile the brand goes to make you as a client of theirs to feel special and unique to them. The branding has to be powerful enough for you to feel something; each brand does not follow trends. They set trends, the set their own fashion and do their own vision of what fashion is today. As Dr. Dan Herman states (the manager, 2015) “ “the dream is not to own a crown. It is to be a king” Gian Luigi Longinotti Buitoni ”, enforcing the fact that a well presented brand will set off emotional connections with you and the product. I think this is all down to the brand image, and how the brand is represented through different media. Take look-books for example, the style of photography will be different from brand to brand, it will have the slight hint of modern techniques and maybe trends but most of all the essence of the brand and its heritage. Even the printing can set it apart from non luxury brands, the smell of the paper and feeling each paper’s attributes sets off different thoughts as to what each look which is presented to you on the page and what it means to you as an

    Read More

  • What Is Grey Market Leakage

    665 Words  | 2 Pages

    Informal sector of any economy comprises of all production of goods and service which contributes to official gross national product but not in books of government or officials. Shadow economy, black/grey economy, underground economy, parallel economy, ‘off the book’ and ‘under the table’ comes under a larger umbrella of informal sector. With every passing day economic activities are increasing and making this world a global village. Thanks to channel members that spread the product from manufacturer to final consumer with the help of set of distributors that are present worldwide. But this growing market can cause unwitting customers to buy a product from unauthorised distributor, buy the product which not made for that particular region or country, buy with warranty that is not authentic or worse is buying a counterfeit product. Concept of grey market takes under the consideration of leakage from regular (formal) supply chain inform of finished/semi-finished or raw products. This leakage is mainly done in form two ways. One is theft and other in counterfeit products. In simple word the difference between the two, is nature of the product. If original product is being sold through unauthorized distribution network, this means that its theft from formal supply chain. That is again caused by several reasons and in different forms. On the other hand if the product in not genuine, than its problem of counterfeit product (product that is replica of original)

    Read More

  • The Importance Of Luxury Brands In The Luxury Industry

    3375 Words  | 7 Pages

    Consumers knowingly purchase counterfeits products for different reasons. According to a study conducted by Swami et al. (2009), half of the respondent of a survey would knowingly buy counterfeited products. Men are more likely to buy pirated CD’s whereas women prefer to buy counterfeited clothing and accessories, that is to say luxury counterfeited products such as a fake Louis Vuitton bag or Chanel clothes for instance. The studies also showed that younger participant are the ones who buy counterfeit products while older believe that counterfeiters should be punished. In addition to this, counterfeited luxury buyers can be classified in two groups; “the wise shopper” that is to say consumers who buy counterfeit comparable to the original one but which is also superior in price. The second group are those who buy counterfeit with a lower price but can be noticed that it is not the original one. (BA, Brand management, lecture notes,

    Read More

  • Discuss The Concept Of Luxury

    1732 Words  | 4 Pages

    In China, luxury can be defined as extravagant and wasteful, because the word “luxury” is combined of two characters in Chinese—“she” and “chi” (Pierre Xiao, 2008). In recent research based on the Chinese fashion consumers, Gutman has proposed that the main concept of luxury product is to satisfy the desired values of consumers. For luxury goods, the characteristics of the luxury products and of the luxury brand should highly significant cater to the needs of consumers and become more symbolic in Chinese fashion consumers society (J.Gutman, 1992).

    Read More

  • Rosewood Branding Strategy

    744 Words  | 2 Pages

    -Status symbols: Sophisticated customers who value the distinctive, exclusive collection seem to value the corporate-branded version of luxury. –Philip Martiz, chairman of the board

    Read More

  • Luxury Vs Luxury Industry

    2778 Words  | 6 Pages

    Luxury industry spreads worldwide; luxury is of an alternate nature in our sources' eyes. It concerns-liberality, be it private or open. Luxury is interfaced to subjective observations of comfort, excellence and a luxurious lifestyle in destination certainty (Dubois and Czellar 2002). The main idea is that of saw incredible quality. The first notion is that of perceived excellent quality. The mental association between luxury and quality is so strong that for some respondents, the two words are almost synonymous. For mass-market items, consumers have many opportunities to judge product or service quality, primarily through multiple purchase and personal consumption experiences. But how can they assess the quality of a luxury good or service that they buy and consume very infrequently, sometimes only once in their lifetime(Dubois, Laurent and Czellar 2001).

    Read More

More about Brand Counterfeiting

Open Document