counterfeiting of goods

COUNTERFEITING

Presented By:Aastha KapoorAbhinow Kumar

Shrutee Parasramka

Shireen SoodSohini Bhuwalka

COUNTERFEIT “First of all the imitation of a product. The

counterfeit is not only identical in the generic sense of the term. It also gives the impression of being the genuine product……originating from the genuine manufacturer or trader”

A counterfeit is: An unauthorized copy; Not conforming to the original manufacturer’s design,

model, and/or performance standards; Not produced by the stated manufacturer or produced by

unauthorised contractors; An off-specification, defective or used product sold as

“new” or working; or Has incorrect or false markings and/or documentation

Counterfeit Goods

The spread of counterfeit goods (commonly called "knockoffs") has become global in recent years and the range of goods subject to infringement has increased significantly

Apparel and accessories accounted for over 50 percent of the counterfeit goods seized by U.S Customs and Border Control

Counterfeit Seizures

Ordinary Items Now Counterfeited

Perfumes

Shampoos

Honey

Toothpaste

Sunscreen

Baby

Counterfeit Clothing - A Growing Problem Globally

Demand for fake fashion continues to grow at an alarming rate according to a new report from just-style, with captured shipments indicating that around 20% of all athletic merchandise is fake. Despite heightened anti-counterfeiting measures, Canadian and US authorities expect counterfeiting to remain high for the next six years

The 'Global market review of counterfeit apparel - forecasts to 2014,' says athletic apparel was the most affected, with captured shipments indicating that around 20% of all merchandise in this sector, which is typically sold in North America, is fake

industry analysts expect the proportion of counterfeiting in certain sectors to roughly double in the 2005-2014 period

Reasons Why Counterfeit Clothing A Growing Problem

Illegal production

Main source

Authentic buyers

Anti-counterfeiting efforts

Counterfeiting In The Capital

Industry reports reveal Delhi contributes 75% to the Indian counterfeiting market

Capital is the main transit point for the sale of black market goods

•Skillfully run establishments sell anything from cosmetics, packaged common use item, electronic appliances, computer accessories,auto parts, moblie phone accessories

•They flourish because of lower costs

•Often sold as genuine products at the MRP of a regular item

Bhagirath Place Market: Wholesale market at Chandni Chowk where one can get fake and smuggled electronic appliances

Markets and their fake products

Gaffar Market: One of the largest markets in the country for counterfeit and smuggled products in the categories of mobile phones and accessories, cosmetic items and commonly used electronic appliances.

Sadar Bazar: Wholesale market in Old Delhi where one can get all sorts of fake items, including packaged FMCG and cosmetic items from selected shops.

Kashmere Market: One of the largest auto parts markets in the country. Some shops sell fake-branded auto spares at one fifth of the original price or even less.

Nehru Place: Asia's biggest computer accessories market. One can get all sorts of pirated software and fake hardware parts from this place.

CHINA-THE COUNTERFEIT CAPITAL

WHY CHINA?

•Particularly Guangdong and Fujian

•FDI main reason

•The entire supply chain is clustered in one chain

Guangxi

Guangdong

Fujian

Jiangxi

Zhejiang

Anhui

Jiangsu

Henan

Hebei

SPOTTING THE FAKEExamine the overall condition of the item.Does it look and feel like a high –end manufacturer made it?Does it worth $1000?

SPOTTING THE FAKEExamine the hardware.High –end manufacturers use brass fixturesCounterfeiters use aluminium and a technique called “brassing”.

SPOTTING THE FAKELogo’s should be crisp, straight, not cut off

The stitches should be straight and uniform. No errant stitches, no weaving line

SPOTTING THE FAKE

Missing serial numbers

Misspelled brand names

HOW TO SPOT COUNTERFEITS?

Check the manufacturer's website. Many large companies now have information on their websites to alert customers to possible counterfeit products and to help them detect fakes

Look out for deals that are too good to be true

Inspect the packaging carefully. Reputable businesses typically take great care in packaging their products

Make sure everything that should be there is there. Counterfeit products often don't include supplementary materials such an owner's manual or a product registration card

KEY REASONS OF COUNTERFEITING GROWTH

the economy of the countries

legal authorities

consumers

manufacturers of luxury brand goods and counterfeiters as well

high illiteracy rate level low purchasing power increasing unemployment rate ineffective law enforcement little risk for large profits low probability to get caught weak legal infrastructure and

corruptible public officials

Countries’ Situation And Legal Authorities:

The aspiring attitude of consumers who wish to buy latest luxury branded products but cannot afford the original luxury goods

When consumers start giving more value to the insignia of a brand on the product instead of the other product attributes, they tend to buy more low-price low-quality counterfeits instead of originals

Moreover, high power distance in various cultures also leads to high demand for counterfeits of luxury goods

Consumers – The Demand Side

Counterfeits of luxury brands do not require much effort to be sold, nor do they require much money to be manufactured

The amount of money and time invested is lower

Ease of imitating brands due to advancements in technology

Highly fragmented channels of distribution 

Manufacturers - Legitimate And Counterfeiters

Impact On The Industry And Government

Innovation is undermined

Criminal networks gain financially

The environment is negatively affected

Workers are worse off. Moreover in

countries where counterfeiting and piracy

is widespread

Foreign direct investment may be lower

the structure of trade may be affected

Combating Counterfeiting

At the national level, two of the principal challenges in combatingcounterfeiting and piracy are:

find ways to enhance enforcement

raise awareness of counterfeiting and piracy issues