Substantial number of factors goes into a brand building. A person or institute, pocketing something which belongs to someone else and piggybacking on someone else’s reputation is an act of counterfeit.
Certain consumer goods, especially premium and desirable brands or those which are easy to reproduce at low rates have become quite frequent and common targets of counterfeiting. The counterfeiters either attempt to deceive the consumer into thinking they are purchasing a legitimate item, or convince the consumer that they could deceive others with the imitation. Some counterfeits are produced in the same factory that produces the original, authentic product, using the same materials.
A survey revealed the stark reality of FMCG companies having maximum loss up to 40% and an average loss of around 20% of their market share of their well-known products.
The interesting part, the customers’ attraction towards these pirate products is directly proportional to the price of products which are sold at 40 to 45% lesser value than the original. A common man with limited knowledge falls for the counterfeit products due to its lower or discounted prices, since he can not find any physical or logical differentiation between products.
Counterfeiting appears in two different forms, as deceptive and non-deceptive counterfeiting. Under deceptive counterfeiting, the consumer is not aware of the fact that he/she purchases a copy rather than the original product and cannot be held accountable for the behavior, this consumer can protect his interest by using combat mobile app. Non-deceptive counterfeiting, where consumers intentionally purchase fake product also can report through a smartphone application to alert the original brand or OEM.
The February 2017 report, by research firm Frontier Economics, said the wider social, investment and criminal enforcement costs could take the total to $4.2 trillion, leaving at risk about 5.4 million “legitimate jobs”.
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