Disadvantages Of Counterfeit Goods

As globalisation brings in new and various products, counterfeit goods also spread quickly. This has a negative influence on local retailers and trademark owners by taking away part of their local market share, taking advantage of the designs of a brand’s

Gucci has trademarked more than 21 registered trademark which consist of the word “Gucci” and other symbols. Defendant Wang Huoqing who resides in China has register, establish, and at that time maintain more than 24 counterfeit goods website such as, bag2do.com, bagdo.com, ibagto.com, my4shop.com, and ebagdo.com. This websites offer counterfeit goods with Gucci marks and name on a significantly lower quality compared to the genuine counterparts.

For several industries in Asia, in particular pharmaceuticals, security issues include fake branded products and the substitution of goods with counterfeit or inferior quality replacements. Recent supply chain security initiatives are also designed to address security problems relating to the sale of counterfeit goods. In August of 2008, Hong Kong customs discovered 2.5m cigarettes in a container that was marked to contain other goods. If these items had not been identified as fake, they could have been sold as original brand goods, resulting in a substantial shortfall in excise income for the Hong Kong Government.

For years, Louis Vuitton enjoyed high profit margins from the luxury market in Japan until other competitors such as Prada and Gucci entered the market. Counterfeiting also became a threat to the firm’s brand by satisfying consumer demand at lower prices. Other external global environmental problems included highly priced products, limited availability in stores only, and a heavy dependency on the Japanese market (Pearce & Robinson, 2013, p. 14-18). Moreover, “the after-shocks of the global recession were a threat to Louis Vuitton’s luxury business in Japan”, and Japanese women became less interested in the brand’s products (Pearce & Robinson, 2013, p. 14-18). Alternatively, Louis Vuitton could “reinvent itself and regain what used to be its well-attested

Meanwhile, some consumers were also attracted by the counterfeit products, which have the same design and considerable quality. The situation of LV in Japan seems to be fierce, however, with effective solutions, LV can also seize the opportunity to sustain profitability in Japanese market rather than just survive. As it is stated in the case that Japanese consumers had been holding the desire for inexpensive luxury products from Louis Vuitton. Therefore, to solve this problem and attract more customers, LV should strive to make “inexpensive” products by increasing the value of products, lowering the costs and prices, and finally creating high value for the consumers. As the scandal of counterfeit sold on the websites in 2008 led to a decline in the sales of Louis Vuitton products, it can be viewed as a valued opportunity for Louis Vuitton to establish its own business online since it can both add selling channels and empower the company to fight with counterfeiting.

This is when the seller deliberately makes false statements of goods and this would be called fraud which is a criminal offence. Example of this would be someone selling a fake Apple watch and told the buyer that’s its real when it’s not. Under the Act, the court would fine the person that sold the watch. The customer that is affected would be able to cancel the contract and claim their money back.

Not only is watching The Simple Life entertaining, it draws the viewer into what life would be like with all the perks of the upper class. Even while leveling out the playing field by stripping Paris and Nicole of their high class lifestyle, it is still easy to tell where thy come from by the brand name clothing and accessories. These are versions of emulation and price tag framing. Emulation framing is engrained into young children’s minds as a result of the media and reality television. This type of framing allows for rewarding ones self with a pricey object which leads into price tag framing. It is easy to measure self worth with property and clothing, therefore name brands become very important to portray a good image. By owning something of value, it is easier to feel better about yourself instead of being

Sociocultural: In the recent years, the desire to appear wealthy has attributed to the increased popularity in luxury products. Also, the desire for luxury goods was promoted by effective advertising and TV programming that promoted conspicuous consumption to middle-income consumers. Middle-income consumers also tend to “reward” themselves with luxury items.

In addition there was an increase in the amount of shipping requirements (increased by 20% in ten years). Logically, the industry grew in order to meet the increased customer demand. This also increased the

we must turn to economics to explain why demand has increased. Demand refers to how much of

Interdiction – Using focused targeting and inspections to keep counterfeit and pirated goods out of U.S. supply chains, markets and streets.

In order to understand how to meet the increased demand, research was conducted to unveil the problematic issues the

In addition, the widespread financial gap between the costs of production of originals and knockoffs causes design piracy to have some economic ramifications. Because the knockoff designs are manufactured at lower costs, they tend to sell for much less; for example, a replicate might sell for up to one-third the price of the original design (Wilson). This lowered price, combined with the fact that the copied design would hit store shelves first, causes consumers to deviate more

Finally, LVMH must protect its brand against counterfeit and dilution. With the recent expansion of the internet and globalization, availability of products has grown to new heights. In order to keep the brand management that LVMH desires, it must tightly control the availability so not to dilute the market and lower the perception of their brand. Also with the increased knowledge and resources of counterfeiting, LVMH needs to keep a grasp on illegal goods. Not only are the goods becoming increasingly difficult to distinguish real from fake, but the channels of distribution of counterfeit products have increased. Europe customs believe that 75% of counterfeit luxury goods originated in China or Hong Kong. Online stores such as EBay also have seen a large amount

On the other hand, the large market potential has drawn a host of luxury-goods companies to enter the China market, which makes the competition fiercer and fiercer. And it is troublesome for LV that there are plenty of fake goods imitating LV’s style prevailing in China, which are actually not likely to reduce LV’s high-end consumers, but would exert negative influences on consumers’ impression and awareness of LV.