Dangerous trends in counterfeiting

28/02/2022

The issue of product counterfeiting is not new. It's been present for years now! The stressful part is the steep rise of counterfeiting practices in recent times. The brands are progressing, so are the counterfeiting malpractices. They are becoming sinister day by day.

Counterfeiters are encroaching upon a considerable profit share of the successful brands by duplicating their ideas, products, and related offerings. How? By leveraging all the latest trends that can increase the reach of their fake products. Yes, counterfeiters are that well-updated, and proactive! That's how they have managed to expand the width of their illicit practices in this technologically advanced world.

Counterfeit goods create a $4.3 trillion hole in the economy. No wonder why businesses are facing losses up to such a considerable extent. Want to know the dangerous counterfeiting trends? Let's get the insights:

Cross product fakes

Loyal customers usually stick to their favorite brands. Counterfeiters are well aware of this concept. They tamper the brand logo to fool the consumers. It gives a realistic and genuine look to the product, even though it is counterfeit. There have been numerous cases of apparel knock-offs where everything looks the same except the logos were changed to cover multiple brands.

Tampering with the product packaging

Counterfeiters duplicate the product in a way that it becomes almost impossible for the brands and consumers to identify the real ones from the pool of fakes. Packaging contributes a lot to product identification. They tamper with the product packaging and its security features to prevent the consumers know that they have purchased a counterfeit product.

High reach in e-commerce platforms

This trend holds the maximum share of the counterfeiting practices today. E-commerce platforms were present earlier also. Howeveer, after the pandemic, these online platforms have witnessed a phenomenal rise. Buyers prefer to buy online instead of going to a physical marketplace. Most brands are actively pursuing e-commerce platforms to promote sales on these marketing channels.

How do counterfeiters leverage this opportunity?

The e-commerce market skyrocketed after the COVID-19. It made things way easier for counterfeiters. They could easily set up an online shop and sell knockoffs with little trouble. Several industries have faced massive backlash because of the supply of their fake products on online channels. The Red Points conducted a study on online shopping. It says around 50% of consumers bought fake goods online in 2021.

Counterfeiters easily duplicate the products and sell them online and on social media channels. They are becoming increasingly sophisticated when it comes to packaging, textures, and branding. They sometimes go to the extent where they can infiltrate genuine supply chains without arousing any suspicion.

How do online counterfeiting trends target the brands?

The e-commerce market is huge and easily accessible. There are counterfeiting trends in online marketing.

  • Offering fake products at cheap prices

Counterfeiters sell fake products at super cheap prices. Consumers purchase these products thinking they've got an excellent deal. Consumer awareness is necessary to prevent such issues.

  • High presence of fakes on online channels

Fake products are everywhere, especially on online and social media channels. It creates another set of challenges for brands. Without the application of advanced technology, it is extremely difficult to keep a track on counterfeit products.

  • Satisfaction of consumers in counterfeit products

Sometimes quality of counterfeit products and cheap knockoffs isn't too bad as to arouse suspicion in customers. It comes as a huge warning sign for the brands. They must protect their market presence, or they might lose their market share.

  • Negative brand image

Customers lose trust in the brand when they receive counterfeit products. Most of them believe it's the responsibility of the brands to ensure the authenticity of products.

What's the solution? 

Speed {IT} anti-counterfeiting solutions have the ability to combat the rising product duplication practices. By making the best of the technology, expertise, and global exposure, we bring the most advanced digital solutions for brands. Connect with us to know more about our offerings.