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Presentation on Brand Piracy and itseffects.
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Brand Piracy is making anexact copy of product
It harms the reputation ,image and goodwill of the
name of the better knownbrand
It directly harms the salesline of the brand.
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The desire topossess
products ofhigh end andluxury brandshas openedthe market forbrand piracy
To maintain socialstatus, consumersstarted purchasing
counterfeit products
Fake products areavailable at cheaperrates
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Unavailability of original brands inall parts of the world
Economic recession
People prefer buying fake productsinstead of originals as they go outof trend after one season
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Louis Vuitton handbags
Burberry checks
Ed Hardy garments
Ritu Kumar garments
Benetton , Nike and Puma products
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Scrutinize labels, packaging, and contents
Seek authorized retailers
Seek quality assurance in the secondary market.
Be vigilant when buying abroad
Brand should give their secret marks on all products
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1. Location, Location, LocationFirst and foremost, purchasing luxury goodsat a brands boutique, website or authorizeddealer is your best bet to insure buying agenuine product. Items at flea markets,home parties, from street vendors, orunauthorized websites are likely to be fake.
2. The Price is RightQuality and exclusivity account for the high
price of luxury goods. Thus, if the priceseems too good to be true, it probably is.
3. Construction SitesCraftsmanship is a main point of distinctionwith luxury goods. Sloppy stitches in lessvisible areassuch as the underside of aproduct or inside pocketsis likely theresult of counterfeit production.
4. Package DealLuxury retailers meticulously package theirproducts, including tissue paper,authenticity cards, product careinformation, superior quality boxes, andshopping bags. If you see a plastic wrapcovering or a flimsy dust bag, it's probably afake. For example, counterfeitmanufacturers will often wrap the handlesof handbags in plastic.
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5. Spell-checkCounterfeiters will often misspelldesigner names. Check for letters thatare swapped or a letter that iscapitalized that shouldnt be, and viceversa.
6. Check the HardwareWith most luxury accessories, you will
find the logo on all the metal pieces,such as zippers, latches, snaps, andbuckles.
7. Read the LabelIn a genuine article of luxury clothing,most often the label is stitched in,whereas counterfeit clothes are likely tohave a less expensive hangtag. Also,check the country of origin on the label.
8. Timely Tips
Makers of fake watches may notreplicate unusual features, such as ahelium relief valve. If the feature isavailable, often times it does notfunction.
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Study the impact of piracy onluxury brands
Studyinterrelationshipbetween variables
of brands andpiracy
To devise asolution so ashow to combat
the evil ofpiracy
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Misrepresentation by vendors and forgery area feature of most markets.
Fake sprtswear,watches, designer bags etc
are found in Europe, Australia, China etc. For some people, there is a reverse chic in
buying and flaunting a fake or a knock off
Harmful effects of counterfeit goods include
loss of tax revenues, job opportunities, andencouragement of other crimes.
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Calvin Klein, has had problems with fakestersselling poor quality merchandise bearing hisbrand name.
The better known the brand name, themore people want to rip it off CalvinKlein.
CK has employed a tougher approach againstpiracy by establishing a network of
specialists to uncover copyright abuse. Fake goods not only reduce the brands sales,
but also its image by linking it to poor qualitymerchandise.
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Being copied is the ransom of success Gabrielle Coco Chanel.
US senators have introduced a bill that would
expand an existing ban on counterfeithandbags and sunglasses.
Intellectual Property scholars are against theidea of introducing the Bill, saying that
growth and creativity in the fashion industrydepend on copying. This is referred to asFashions Piracy Paradox
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A designers success depends on the power ofhis/her clothes and designs to commandattention.
Frances Copyright Law covers fashiondesign, and its Design Act , which extendspatent-like protection to fashion have donenothing to curb piracy.
Fashion copyrights would be difficult toenforce, as designers continually recycleideas and imitate one another.
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SELLING ON
ONLINE FAKE
CLOTHING N
ACCESSORIES ISBECOMING A BOOM
FAKE GOODS ARE
VIRTUALLY OF
CHEAP QUALITY,
FABRIC ANDSTITCHING
ASIAN COUNTRIES
ARE FILLED WITH
COUNTERFEID
PRODUCTS
ASIAN COUNTRIES
ARE FLOODED
WITH
COUNTERFEID
PRODUCTS
FAKE WEBSITES
DO NOT GIVE
THEIR COMPLETE
CONTACT
DETAILS .
SHASTA COHEN
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COUNTERFEIT
PRODUCTS COVER 57% OF GLOBAL TRADE
REPLICAS AREAVAILABLE AT MUCH
MORE AFFORDABLEPRICES
85% OF LOUISVUITTON HANDBAGS
USED TODAY AREREPLICAS
IT EFFECTS THE
IMAGE AND PRESTIGEOF DESIGNERS
POEOPLE HAVE GOTAN EASIER WAY TO
CARRY ALL THE HIGHEND DESIGNERPRODUCTS THROUGH
REPLICAS
BUYING REPLICATEDHANDBAGS IS
ECONOMICAL FORAVERAGE FASHION
CONSUMER
GAP NO SOLUTION HAS BEEN GIVEN TO CURB THIS PROBLEM
TREVOR EASTVEL
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Abercrombie and Fitch is also one of thebrand that faces lot of counterfeiting
Author has Spotted lot of measures to
prevent from counterfeiting such astelling the placements of the zippers,packaging, standard sizing etc
Abercrombie never sells an offseasongarment so if you get any is a replica
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Brand Piracy is a major menace andsocial evil that is plaguing the fashionindustry these days.
Counterfeiting harms the reputation andgoodwill of the brands. The originalbrands tend to lose their value andimage which they have managed to buildafter years of hard work.
The business of brand piracy is boomingdue to the encouragement of theconsumers. People and businesseslooking for cheap deals and survivalcreate the ground for counterfeitingproducts.
The industry of fakes and forgery has aturnover of around $600 billion andabove.
The craftsmanship and detailing of fakegoods is so perfect and intricate that italmost impossible to make out whetherit is fake or genuine.
Designers and brands are takingstringent measures these days in orderto distinguish their products and stopthem from being replicated.
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Sampling
Data Collection
Data Analysis
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Method of sampling
Judgmental Sampling
We have taken thoseindividuals as our study
units who were carryingfake branded productswhen we visited marketslike Janpath, SarojiniNagar etc.
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Sampling Unit:
The unit which we have taken forsampling is to study the opinion ofpeople about brand piracy andcounterfeited goods.
Sample Frame:We had gone tomarkets like Sarojini Nagar,Ghaffar Market, and Janpath. Wehad also interviewed store
managers of branded stores inmalls like Select Citywalk, DLFEmporio etc. the brands which aremost commonly copied is - EdHardy, Louis Vuitton, UnitedColors of Benetton, and Burberry.
Sample Population:
We have handpicked andinterviewed the shoppers at placeslike Janpath, Sarojini Nagar. We haddistributed about 50 questionnairesand got them filled from theseshoppers.We have taken a total of50 people as our sample populationwithin the age-group of 16- 30.
Sample Size
CUSTOMERS- 50COMPANY REPRESENTATIVES 7
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PRIMARY DATA- The sources ofcollecting primary data was we had
taken individuals as our study units andwe had asked them to fill
questionnaires in order to understandtheir opinion regarding fake or
counterfeited products. We had alsointerviewed store managers of some
brands like Louis Vuitton, Burberry, Ed
Hardy etc, in order to understand howthey feel when their brand is copiedand what is the impact of these fakeproducts on the brand and to whatextent counterfeiting affects their
sales turnover.
SECONDARY DATA The sourceswhich were used to collectsecondary data are articles
from the internet, magazines,
referred to books from thelibrary etc.
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AGE-.
SEX-
FEMALE
MALE
Q1) ARE YOU IN FAVOUR OF BRAND PIRACY?
YES NO SOMETIMES
Q2) DO YOU PREFER BUYING AN ORIGINALOR FAKE PRODUCT?/ WHY?
..
Q3) IF YES, WHERE DO YOU BUY FAKE PODUCTS FROM?
SAROJNIMARKET
JANPATH MARKET
PALIKA
GUFFARMARKET
LAJPAT NAGAR
OTHERS
Q4) WHAT ACCORDING TO YOUCAN BE DONE TOSTOP BRAND PIRACY
COMPULSERY HANG TAGS AND LABELS
SECRETMARKS IN GARMENT
HOLOGRAMON BRAND LABEL
SUSPENSIONOF LICENCE FOR 3-5 YEARS, IFCOUGHT
ANY OTHER
Q5) WHY DO PEOPLE PREFER BUYING FAKE PRODUCTS INSTEAD OF ORIGINAL PRODUCTS?
CHEAPER IN RATES
PRESTIGE ISSUE
FASHION CONCIOUS
RAPIDCHANGE IN FASHION
MOREOPTIONS AVAILABLE IN CHEAPER PRICES
OTHERS..
Q6) DOES ITMAKE ANY DIFFERENCE THATTHE PRODUCT IS NOT DURABLE?
YES NO SOMETIMES
Q7) ITSCLEARLY VISIBLE THATTHE PRODUCT IS FAKE
WOULD YOUSTILL PREFER BUYING IT?/ IF YES, WHY?
YES NO
..
Q8) DO YOUWILLINGLY BUY FAKE PRODUCTSOR BY MISTAKE?
YES NO
Q9) RATE THE FOLLOWING PARAMETERSACCORDINGTO YOUR PREFERENCEWHILE BUYING A FAKEPRODUCT?
PRICE
BRAND NAME
STYLE
QUALITY
COLOUR
QUANTITY
VARIETY
Q10) ARE YOUCOMFORTABLE TELLING PEOPLE THATTHE PRODUCT YOU HAVE PURCHASED IS FAKE?
YES NO
Q11) DO YOUTHINK BUYING A FAKE PRODUCTWOULD HAMEPR THE IMAGE OF ORIGINAL BRAND?
YES NO
Q12) ARE YOU AWARE ABOUTTHE EFFECTSOF BRAND PIRACY?
YES NO
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After preparing the coding sheet, the result andobservations of the study are as follows:
1) 33% of respondents are in favor of brand piracy and 50%among them prefer buying fake products from sarojni
nagar market2) 55% of respondents do not prefer buying fake products,
they would rather purchase originals but the rest 45%purchase it taking into consideration the cost factor
3) 43% of respondents says that brand piracy can be
stopped by embossing secret marks in garment4) 60% of the respondents consider durability as a prime factor
5) 77% of respondents would not go for fake products if it isevident that the product buyed is not original
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7) 80% of the respondents do not buy fake products willingly
8) 65% of the respondents hesitate in telling, they arecarrying or wearing is a fake products
9) 75% of the respondents feel that buying fake products
would hamper the image of the brand10)60% of the respondents are aware of the harmful effects
of brand piracy
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OBJECTIVE: TO STUDY THE IMPACT OF PIRACY ON LUXURY BRANDS
BRAND ..
AGE-.
SEX-
FEMALE
MALE
Q1) ARE YOU AWARE OF BRAND PIRACY?
YES NO
Q2) ARE YOU AWARE THAT YOUR PRODUCTS ARE BEING PIRATED?
YES NO
Q3) HOW DOES PIRACY EFFECTSTHE IMAGE OF YOUR BRAND?
.
Q4) ARE YOU AWARE OF THE PLACESWHERE THE PIRATED GOODS FOR YOUR BRAND ARE AVAILABLE? IF YES, PLEASEMENTION THE NAMES?
YES NO
..
Q5) DO YOU HAVE TOSELLYOUR PRODUCTS AT DISCOUNTED RATES BECAUSE OF PIRACY?
YES NO
Q6) ARE YOUR CUSTOMERSLOYALTO YOUWHEN THE SAME PRODUCT IS AVAILABLE IN THEMARKETATCHEAPERRATES?
YES NO
Q7) WHY DO YOUTHINK PEOPLE PREFER BUYING FAKE PRODUCTS INSTEAD OF ORIGINAL?
(YOUCAN CHOOSE ONE OR MORE THAN ONE OPTION)
COST
STYLE
QUANTITY
TRENDCHANGESQUICKLY
MOREOPTIONS AVAILABLE IN CHEAPER RATES
Q8) DO YOUTHINK ECONOMIC RECESSION IS RESPONSIBLE FOR INCREASING BRAND PIRACY? IF YES, WHY?
YES NO
Q9) FAKE GOODS FLOOD THE LOCALMARKETBEFORE THE ORIGINALS EVEN ARRIVE IN THE STORE AND THISEFFECTSTHE SALESOF ORIGINAL BRAND
AGREE STRONGLY AGREE DISAGREE STRONGLY DISAGREE
Q10) HOW DO YOUSPOTCOUNTERFEITPRODUCTS?
OUTSIDE PACKAGING
BRAND LOGO
PRICE
STITCHINGQUALITY/ FINISHING
IF THE PRODUCT IS DIRTY
ANY OTHER
Q11) COUNTERFEITPRODUCTS REPRESENTA 5%-7% SHAREOF GLOBALTRADE. HOW DOES IT AFFECTTHESALESOF YOUR BRAND?
.
Q12) IF YOUCOME ACROSS A COMPANYWHOMAKES YOUR COUNTERFEIT, THAN WHATLEGAL ACTIONWOULD YOUTAKE?
.
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1) 100% of the retailers are aware of the brand piracy they know their products are being pirated aware of where the fake copy of their product is sold
2) 100% of the retailers said they would not sell theirproducts at discounted rate due to piracy3) Luxury brands retailers said that there customers are loyal
towards them, retailers for reasonable brands said theymay or may not
4)60% of retailers said people buy fake products due to costfactor
5)78% of retailers agreed that if the fake product comes tolocal market it will effect the sales of the original brand
6)75% of retailers identify counterfeit products due toworkmanship
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Summary
Recommendations
Limitations
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The problem of brandpiracy is plaguing thefashion industry.
China is the hub and keydestination for brand
piracy and counterfeiting. Louis Vuitton, Burberry
and Ed Hardy are the mostcommonly copied brands.
Brand Piracy hampers thesales of the originalbrands.
It also affects the image,reputation and goodwill ofthe well establishedbrands.
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Luxury brands should insert secret identification marksinto their products.
Consumers should be made aware of brand piracy and its
implications. Heavy penalties should be imposed on people who indulge
in production of fake goods.
Legal action must be taken against brand pirates.
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Custom officials and government agencies are alsoinvolved in the trade of fake goods.
Original brands dont take any strict action againstcounterfeiters.
Consumers want to attain a high level of social statuswithout paying the cost for it.
There are no laws for copyright protection of designs.
It was a task to get the questionnaire filled from the storemanagers at LV and Burberry. They were uncooperative,
and not ready to share information. Our retail questionnaire was close ended, hence there was
no proper scope for suggestions.
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SWATI JULKA
HEENA KHANNA
SHEENAMSUKHIJA
SHEENAMSUKHIJA
SUGANDHA GUPTA
s