The Bigger They Are…
How hard are you willing to Fall for your product’s fakes?
The cost of counterfeits is more than monetary. Not only do counterfeits hit
you in the pocketbook, they can be harmful to your company’s reputation,
and even endanger consumers. The Department of Homeland Security
similarly argues that the “illicit trade” of counterfeit goods is a threat to public safety and “erodes U.S. economic competitiveness” by decreasing brand trust. Oftentimes, consumers are not aware that the product they’re receiving is counterfeit, and associate performance or safety issues with the
brand itself. Additionally, the rise in e-commerce business has made it possible for counterfeiters to easily create legitimate-looking storefronts and sell their products right alongside legitimate ones. In fact, in the decade between 2005 and 2016, there was a “154 percent increase” in the number of counterfeits traded internationally.
The linkages between the rise of e-commerce and the rise of counterfeit sales cannot be dismissed, but we’ll go into the specifics of the ecommerce
market in a bit. Counterfeits infiltrate a wide variety of industries. The chart below outlines the percentage of fraudulent products out of total seizures by CBP in 2018, broken down by retail category. In half of these categories, at least 1 in 10 products were deemed fake.
The government is cracking down on counterfeits, but these efforts can only go so far. A lot of emphasis is put on individual corporate responsibility to catch these fakes. Just how harmful is turning a blind eye? Let’s find out.
Download the whitepaper to learn more.