Table of Contents
- 1 Why do people counterfeit products?
- 2 Why do consumers buy counterfeit?
- 3 How companies protect their intellectual property and trademarks from counterfeit goods?
- 4 What are the effects of counterfeiting?
- 5 How are luxury brands hurt by counterfeits?
- 6 Can Manufacturers of brand-name products beat the challenge of private label products?
- 7 Why do distributors contract for private-label production?
Why do people counterfeit products?
Perhaps the primary reason people buy counterfeit goods is because they are usually cheaper to purchase than the original, authentic goods. A high possibility of receiving lower-quality goods. A higher possibility of receiving faulty or dangerous goods that do not meet general health and safety standards.
How can companies protect themselves from counterfeiters?
4 ways to protect your product from counterfeiters
- Secure global protection of IP. To restrict others from using or manufacturing your products without permission, you should be sure you secure a patent, trademark or copyright.
- Embrace technology.
- Allocate resources to monitor the market.
- Make it easy for your customers.
Why do consumers buy counterfeit?
Why Do Consumers Buy Counterfeit Luxury Brands? Counterfeit goods are illegal, low-priced, and often lower-quality replicas of products that typically possess high brand value (Lai and Zaichkowsky 1999). The ethical case against counterfeiting aside, its adverse effects on business are well documented and many.
What are the challenges that brands face when trying to stop counterfeiting?
Loss of Sales.
How companies protect their intellectual property and trademarks from counterfeit goods?
The U.S. Customs and Border Protection E-Recordation Tool lets businesses record their “copyright or trademark online with U.S. Customs and Border Protection to help Customs to prevent infringing imports from entering the United States.” Businesses can report retailers and online vendors selling fake merchandise and …
How counterfeit products affect brands and consumers?
Brands will see a sales hit once the problem becomes widespread, since counterfeiters are able to undercut them on price. Their reputation is also under threat, since consumers will equate their brand with the possibility of buying a counterfeit.
What are the effects of counterfeiting?
This report shows that the infiltration of counterfeit and pirated products, or IP theft, creates an enormous drain on the global economy – crowding out Billions in legitimate economic activity and facilitating an “underground economy” that deprives governments of revenues for vital public services, forces higher …
Why consumers buy counterfeit products?
Counterfeit luxury products can satisfy the desire of consumers with high value consciousness to buy products with medium quality and lux- ury symbol at a low price [28]. Therefore, consumers with high value consciousness will be more concerned about counterfeit luxury products showing a stronger willingness to buy.
How are luxury brands hurt by counterfeits?
Counterfeit goods decrease companies’ profits because what these manufacturers’ sell is what the brands will not sell, which means that there is a direct steal of revenues from brands. Thus, buying counterfeit goods translates into reality as a loss of exclusivity for the customers of genuine luxury brands [10].
Why do mass merchandisers and warehouse clubs have their own brands?
Unlike supermarkets, mass merchandisers and warehouse clubs are national chains; they have the incentive to develop their own national brands through private-label lines, and they have the procurement clout to ensure consistent quality at low cost. The Creation of New Categories.
Can Manufacturers of brand-name products beat the challenge of private label products?
Second, manufacturers of brand-name products can temper the challenge posed by private-label goods. In fact, in large part, they can control it: More than 50 \% of U.S. manufacturers of branded consumer packaged goods make private-label goods as well.
Are big brands under pressure from private labels and generics?
Examples of big-name brand manufacturers under pressure from private labels and generics aren’t reassuring. What manager wouldn’t worry when faced with the success story of Classic Cola, a private label made by Cott Corporation for J. Sainsbury supermarkets in the United Kingdom?
Why do distributors contract for private-label production?
The distributors that contract for private-label production have improved their procurement processes and are more careful about monitoring quality. The Development of Premium Private-Label Brands.