Getting ready for the online battle
Dealing with counterfeit products is nothing new for the fashion industry, but the scale of the problem is a continual challenge and one which doesn’t appear to be slowing down on the online shopping scene.
Earlier this year, The Global Brand Counterfeiting and Trademark Infringement Report, announced that the amount of counterfeiting globally has now reached $1.2 Trillion (USD). The report also concluded that approximately $500 Billion (USD) of the total losses incurred is in consumer goods, of which 8 – 10% is from Clothing, Textile, Footwear, Watches, Cosmetics and Perfumes. Furthermore, online sales accounted for 31% of the total counterfeiting-related losses, with fashion items in the luxury sector estimated to have incurred losses of $30.3 billion due to IP infringing goods.
This trend is backed-up in new figures released by the European Commission on customs detentions of articles suspected of infringing intellectual property rights (IPR). The report revealed that over 31 million counterfeit products, with a street value of over €580 million, were detained at the European Union’s (EU) external border in 2017; and in the list of the top five detained categories – clothes! In fact, the category ‘sport shoes’ continued to top the most counterfeited item in terms of the number of found cases, and along with clothes, watches, jewelry, bags, wallets, purses and non-sports shoes, these items have the highest EU domestic retail value (DRV) if sold as genuine on the EU market.
The EU results also confirmed that many of these fashion items were ordered through online channels such as e-commerce sites, online marketplaces and social media networks, having been detained through courier and postal traffic, which accounts for 76 % of cases by means of transport.
Be ready to fight back
Read our NINE TIPS on how brand owners can fight back to ensure their profits and reputation aren’t tarnished during the busiest retailing time of the year.
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