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.

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