Documente Academic
Documente Profesional
Documente Cultură
On
Counterfeiting
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Table of Contents
Abstract…………………………………………………………...3
1. Introduction……………………………………………………..4
2. Effect of counterfeiting……………………………………….4
3. Development section……………………………………………..6
4. Business view…………………………………………………….7
5. Consumer’s perspective……………………………….............7-8
6. Authority view…………………………………………………..8
7. Conclusion………………………………………………………9
8. Recommendation…………………………………………………………………….. 9-10
9. References…………………………………………………….10-11
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Abstract
Counterfeiting of luxury brands product is increasing parallel to increase industry. The demand
of the brands luxury product to customer is always positives. Recently counterfeiting has created
problem for consumer, industry and government. Luxury product counterfeiting is growing
because of emotion of consumer is related to this type of product (Aaker, 1991). Luxury product
counterfeiting is easy because is difficult to identify it. People generally purchase it for social
status. Genuine producer serve a high quality value to consumer that is not provided by
manufacturer must follow same rules and regulation and always try to make consciousness to
peoples mind. People can get the counterfeit luxury product but don’t get the high quality of
product (Bloch, 1993). Consumer should avoid counterfeit product because it is harmful for in
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1. Introduction:
Counterfeit is a word which is generally used to copy or imitate anything without permission of
the original producer.it is done intentionally and low quality products than the original are
provided. It is a one type of crime and an illegal work. Counterfeit includes all products,
hardware, software, services, logo, brand name etc. it is a popular way for getting more profit in
shortcut way. But it breaks the copyright or trademark law. Pirated goods are an overlapping of
counterfeit. Pirated goods mean imitating product without any permission of owner or don’t
following copyright rules and regulation.it is spreading very fast all over the world and gives a
bad effect on branding products (COHEN, 1990). Generally the luxury brand products are
counterfeited. Luxury brands are used in society as a scale of social status.so people generally
wants to buy the brands products for them. The counterfeiter takes this opportunity.
Counterfeit makes a product like the original product as a result usually it is not easy for
customer to differentiate between the original and fake products. Then the reputation of the
brand owner is devaluated. Some others critical effects of counterfeiting on luxury brands
dollar.it can be in many ways. Original brands product have to competitive with the
counterfeiting product in now days.so the sales of product is decreasing and loss occurs (Chen,
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2001). There are many markets in the world where market is dominated by counterfeiting
When customers buy luxury brands product they think it is the genuine product. When that
products fail to full fill the expectation level of customer, they make blame to the original brands
company. So the company loses its good will. If the counterfeit products enable to establish faith
As counterfeiting is a threat for company so it must invests much money for protection its copy
counterfeiting is available. Most of the reputed global company is not interested to produce their
countries copy right and intellectual property law. As a result that countries lose direct the
foreign investment and belief. When reputed company product is counterfeited in any country,
that company moves from counterfeited company (Commuri, 2009).as a result the
entrepreneur for new business. But existing of counterfeiting discourages the development of
new buss idea. For this reason the new investment is not occurred and the resource is not
properly used.
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2.3 Cost on the perspective of country
As counterfeiting causes job loses, sales opportunity dismisses, and government revenue loses
and discourages to new business.so the economics cost occurs. Government has to give more
attention to make copyright and intellectual property law .as a result government spends more
Customer actually has to pay for product which is counterfeit or original. Customer pays more
for counterfeit product because they don’t identify the right product. Inferior quality of products
has a great impact on health such as medicine. Counterfeiting of such type of products are threats
to people’s health and safety (Dubois, 1993). Generally worker who works of producing
counterfeit products works in poor environmental situation. They are also again in threat of
3. Development section
Counterfeiting is a great problem for now days in every industry and a bad effects on customer,
government, industry and society.so there must be some steps taken to protect this counterfeiting
specially in luxury brands product.it is not possible to take steps individually to protect the
counterfeiting. Not only the company but also all who are affected by counterfeiting must come
forward to solve this problem. In details consumers, business, trade, associations, Regulatory
agencies, local and national law and not only local government but also foreign government must
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4. Business view:
Company can use multiple approaches to stop and discourage the counterfeiting product. It can
reduce their profit loss. Protect customers and legal right of company. Business generally use
many tools such as product identification technology, legal action, managerial tools and technics
etc. company must make anti-countering strategy which protect it and monitoring this strategy
continuously. Counterfeiter generally tries to identify the weakness of supply chain. Company
must protect its supply chain for anti-counterfeiting (Keller, 1993). Generally institutional
safeguard must be strong that make impossible to counterfeiter to interfere with supply chain.
Business should develop a preventive measure that will help to identify copy right and
intellectual thieves.
A company must be able to solve the properly the dispose of unused product or damaged product
and surplus. Counterfeiter used many ways to obtain waste repositories. So it is difficult for
company to stop their waste from Counterfeiter. Company should make a policy that will ensure
the damaged or unused products have been totally destroyed in such a way that protect
counterfeiter. Company should reduce the number of middle man to reduce counterfeiting.
5. Consumer’s perspective:
At first consumer should stop buy any counterfeit product intentionally? There are many
consumers who are not interested to identify fake or genuine product. On the other hand there are
many consumers who intentionally seek counterfeit product and buy for save money or in the
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case of luxury product. Every customer should aware of the product and they should know that
buying counterfeit product is harmful for consumer, producer, society and it encourage the
criminal activities. There is an old concept in customer mind that low price means counterfeit
product. Now days it is not appropriate way for seeking genuine (Nia, 2000). Consumer should
give attention to the product quality and its effectiveness. Consumer should always compare
buying product with same product that purchased previously. If product is low quality,
consumers should report to the original manufacturer or the authentication agent who detect
counterfeit goods.
Consumer should identify the fake dealer and should avoid the suspicious dealers from buying
6. Authority view:
Every county’s governmental and law enforcement agency should make the proper intellectual,
copyright and trademark law so that it is protected from counterfeiting. There must investigation
committee to investigate the counterfeit product seller. Government must ensure that the anti-
counterfeiting program is running effectively (Nueno, 1998). Government should give time and
resource to this fact because counterfeiting has a bad impact on economy and society.
Government should make contract with other country to monitor the counterfeiting product.
International organization such as EU, WTO etc. should take the effective action against
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7. Conclusion:
Luxury brands product counterfeiting is one of the most difficult works to identify. The customer
fails to identify the genuine producer luxury product because they don’t see any bad effect of
using. Even though most of the intellectual property proponents believe that the genuine
manufacturer has own technic and tools to identify the counterfeit. To stop the counterfeiting of
brands luxury product consumer perception must need change. Consumers should give the
attention to the quality, feasibility and effectiveness of product. The positive belief of customer
on counterfeit product has increased the counterfeiting. The consumer is emotional attached to
the luxury product (Sharma, 2011). They don’t consider the economic value and also buy the
counterfeit product for use intentionally.so government, consumer and producer should their
8. Recommendation:
3. Government can make awareness among the general people for bad impact of counterfeiting
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4. Discourage the counterfeit products and make sure to justify the market have there any
5. Make sure laws of counterfeiting should be applied instantly by the government of a country.
9. References:
3. Chen, A. (2001), “Using Free Association to Examine the Relationship between the
Characteristics of Brand Associations and Brand Equity” Journal of Product & Brand
4. COHEN, Laurence J. (1990), “Warding off the Foe: How Trade Marks still can Offer some
6. Dubois, B., Duquesne, P (1993), "The market for luxury goods: Income versus culture",
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8. Nia, A. & Zaichowsky, J. (2000), "Do counterfeits devalue the ownership of luxury brands?”
9. Nueno, J. & Quelch, J. (1998), “The Mass-Marketing of Luxury”, Business Horizons, Vol. 41,
10. Sharma, P., Chan, R., (2011), "Counterfeit proneness: Conceptualization and scale
development", Journal of Marketing Management, Vol. 27, Issue 5/6, pp. 602-626
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