conterfeits and cloners1

8/14/2019 Conterfeits and Cloners1

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Do they affect the Brands??

Submitted by: Group 4Shah Utsav (08045)

Supriya H.G. (08052)Swati Bansal (08054)

Ankit Duggal (08066)Sushma N. (08115)


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Intro - Counterfeiters and clones

Market Scenario

Counterfeiters in key Sectors

Auto

Pharma

FMCG

Effect on the brand

Impacts

Spotting Counterfeit products

Recommendations


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An imitation which infringes upon a

production monopoly

Describes the imitations of clothing,

software, pharmaceuticals, watches,

electronics, company logos and brands and

thousands of other things.

One of the most challenging issues for

industries


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Emulates the leaders products, name

and packaging with very little

variations

Look alike

misspelling of the trademark

For example, Sunslik instead of

Sunsilk, Clemic Plus or Climic Plus


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Indian black market: $7.72 billion

Loses:

Government: 1500 crores

Industry: 4000 crores

7% of global trade is derived from

counterfeit products and is still growing

Pervasive and highly networked


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75% of the population lives in

villages Major consumers of counterfeit products

Rural Market Segmentation


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Cheaper than original

Easy availability

Limited knowledge

Product packaging Poor enforcement of laws against these acts

Reasons for counterfeiters and cloners

in Indian Urban market

Desire to flaunt branded items

They get fooled by the similarity


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Grey market for consumer durables is growing

at a rate of 25 30%

In India, they form 50% of the market for

branded electronic products like digital

cameras and gaming consoles.

15-40% cheaper than organized brandedproducts

Causes weak links in the supply chain

Branded products have the burden of tax


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http://www.chinacounterfeitmuseum.com/images/daiads.jpg


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http://www.chinacounterfeitmuseum.com/images/abcids.jpg


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http://www.chinacounterfeitmuseum.com/images/punk.jpg


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Automobile

Pharmaceuticals FMCG


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India one of largest automobile markets

Main driver for counterfeit automobile parts

Profits are immense

Market size: $1 Bn. - $1.3Bn.

Affects

The reputation and goodwill of manufacturers.

Profits of the companies

The vehicles life and a threat to the person riding

it

Undermines consumers confidence in brands


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Counterfeit drugs form 10% of the

global pharma market.

75% of the fake drugs are from India (Source:OECD)

Effects:

Health and safety hazards caused by

these drugs

The growth of pharmaceutical industry &


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Affects 8-10% of the revenues in the FMCG

sector

Affects brand image and brand loyalty

negatively

Loss of $500 million annually

The top two brands in every FMCG segment is the

biggest victim of counterfeiting providing the

volumes and profitability for counterfeiters to


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Association with the genuine product

Original brand name is damaged

Brand Image is damaged

Customers shun brands being counterfeited

Adverse publicity

Destroys the industry on which it preys,

and rips it off by a massive loss of sales to

the genuine producer.


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Society

Economy

Environment


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Public health & safety

Non compliance with Safety Standards

Inferior performance, dangerous/fatal

consequences

Counterfeit products have caused stomach ulcers,

blindness, paralysis, deaths.

Air crashes & Motor accidents with disastrous

consequences

Duplicate / spurious auto parts.


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Tax Revenue loss to Government

1000s of Crores in FMCG sector alone.Counterfeiters may charge

customers excise/ sales tax, but

generally retain it.

Counterfeiters pay only a fraction of


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Household appliances & parts pose

greatest potential risk of fire and shock

hazards

Counterfeit batteries and cells damage the

product as well as emit excess CO2

when

disposed.


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Brand AwarenessStrict Judicial System

Packaging with HologramEmpowering consumer associations Investigative agencies


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