Luxury Goods Counterfeiting put to rest with New Momentum
The counterfeit and gray market luxury goods trade is estimated at $300-600 billion. Proliferation of e-commerce and internet sales has provided counterfeit and gray market operators with ready access to consumers and markets. The number of visitors to counterfeit e-marketplaces jumped threefold annually last year. And while footwear has been the top commodity seized since 2006, handbags/wallets/backpacks experienced a more than 100% increase in counterfeit activity in the period of 2007-2008. Given the current economic environment, the number of counterfeit sites will only increase. For example, in February 2009, US Customs and Border Patrol (CBP) seized more than 25,000 Italian, French, and German designer shirts with a retail value of $5.7 million at Miami International Airport. The goods were produced in China and were on their way to the Dominican Republic, but fortunately were seized because of trademark violations.
Not only are the counterfeiters making copies, they are making “super copies” that sometimes even employees of well-known luxury goods manufacturers cannot distinguish from legitimate products! The high profit margins achieved through selling counterfeits and gray market products make this a very attractive business for organized crime. The damage that these perpetrators do to manufacturers’ brands and revenues cannot be understated. Nor can the associated job loss. Counterfeiting luxury goods can be effectively tackled with New Momentum’s luxury goods anti counterfeiting solutions. New Momentum’s sophisticated brand protection technology are all weapons for finding the violators and shutting them down so you can recover the revenue and brand reputation lost to counterfeits. Find out more, read our white papers on the business of counterfeiting luxury goods.
Ultimate Luxury Good Anti Counterfeiting Solutions
A recent NRF survey, 85% of respondents said that they had been a victim of organized retail crime in the past 12 months – and 63% responded that they had experienced an increase in e-fencing of their goods over the same time period. Losses to counterfeit not only damage brand image, and revenues, they affect channel loyalty as well. Heavily discounted gray market products and distributors selling across regions is primarily the reason for erosion of the revered channel partner loyalty. Counterfeiters are extremely sophisticated, who are experts in copying everything from ad campaigns to the product itself. While many retailers acknowledge that entirely stopping counterfeiting may never happen, each counterfeiter or gray market participant stopped bolsters brand, image, and revenues of the original product/ enterprise. Luxury goods and anti counterfeiting solutions go hand in hand. Opt for New Momentum’s solutions and know the difference. Register for our case studies to read up on our solutions for anti counterfeiting luxury goods.