Академический Документы
Профессиональный Документы
Культура Документы
(GCIB)
Subject: SHAM8783
Prepared by:
Date of submission:
2-09-2004
Submitted to:
Sergent Löwenstrolph
Abstract
The project report involves discovering counterfeit products and their effects. This report aims to
find out the impacts of counterfeiting with the relevant statistics. Analyse the markets for counterfeit
and pirated products. This report highlight the importance of distinguishing those consumers who
knowingly purchase counterfeit or pirated products, from those who are deceived. It helps the
customer to aware that they are being deceived by the counterfeit products. This report also tries
1.0 Introduction 1
1.1 Purpose
1.2 Aim
5.0 Findings 5
6.0 Conclusion 6
7.0 Recommendation 7
8.0 Reference
1.0 Introduction
The practice of producing goods similar or identical to the original product produced by registered
trademark, which deceive the consumer is counterfeiting (OECD, 2013). It is possibly an illegal
profit oriented act which effects both purchaser and producer. On the one hand, when purchaser
receives the counterfeit product, there is the possibility of losing trust towards the original product.
On the other hand, the reputation of genuine product producer’s may get affected. Counterfeiting
is mostly popular in different areas like luxury brands, electronics, pharmaceuticals, and so on. In
most of the places, counterfeit products are found in cheap prices. These products are mostly
found in different countries of Asia, Eastern Europe and Latin America. In comparison, developing
countries manufactures more counterfeit products than developed countries. Mostly, consumer
gets deceived from online shopping than rational shopping. Counterfeiting is not only practiced in
useable product, it can also be found in intellectual and entertainment fields i.e. books, novels,
1.1 Aim
This report aims to analyze the effect of counterfeit product and how counterfeit product is being
effecting in terms of consumers and company’s economy. We have used some evidence and
1.2 Purpose
The main purpose of this report is to analyze the effects of counterfeiting and how companies are
affected with this illicit trade as well as to aware both consumer and companies how counterfeit
products are effecting market and damaging the status of the companies and consumers
purchasing .
1
2.0 Counterfeit products
Counterfeited products have indistinguishable trade mark from the original one. So, it’s
manufacturing and selling is around the world, mostly in developing countries. Some of them are:
designer or luxury goods like: Prada, Chanel, Fendi, Gucci, Nike, Adidas, Vans, Crocs, and so on.
electronic equipment like: cables, fuses, circuit breakers equipment for domestic work, and many
more. Personal and home care products like: Shampoo, Shop, hand wash, etc. Music, CDs, DVD,
pharmaceuticals, etc. this are the product which are being counterfeit. The chart below illustrates
the percentages of people in UK who buy counterfeited products in 12 months. This figure has
ascertained that various luxurious products as clothes, watches, leather goods, shoes & jewelry
product is being increasing. In 2008 the total costing $250 billion was counterfeit but now it’s all
most increase by 2.5% US dollar which means $461 billion (Commerce, 2016).
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3.0 Effects of Counterfeiting
A counterfeiting is an illegitimate act and it has affected the both consumers and brand owners with
economically and socially. This section has identified the impacts of counterfeiting on consumers
Counterfeited products are almost same as genuine one with inferior quality. As a consequence,
consumers often get confused while buying these products. Sometimes they have to pay almost
same price as original for pirated products. When the service doesn’t meet with their expectation,
they might have negative experience and create unreliability towards the branded products.
Counterfeit products are harmful for both economic and health aspects. Trade of counterfeit drugs
is growing in global market and it has endangered many people lives and the people who died with
Company and brand faces several implications with illicit trade of counterfeited products. Imitation
of genuine product reduces the brand value and goodwill as well as lessens company’s
profitability. Companies are losing their business and revenue which supposed to be gained from
Counterfeiting is being a challenging illegal practice that has immensely affected consumer,
government, market and many business entities. It has created extensive harm on consumer’s
health and safety, employment, firm’s investment and cost of operation. It causes negative impact
on the price and sales of original product so, firms are bearing extensive loss and also their brand
3
value and status are in the risk of dreadful conditions. According to Arlee Sowder, American
business industries lose nearly $200 billion revenue every year due to counterfeiting. In terms of
employment, nearly 2.5% million job worldwide have been dismantled by counterfeit black market
(Sowder, 2016).
has mostly affected in the economic sector, which is also discussed below.
Counterfeit products have serious cost in the economic development to some of the luxurious
brand. They have to face many challenges to sustain the competitive global market where large
number of new products have been discovering every year. This illegitimate act has compelled to
big company to invest large sum of money to research new product and fight for anti-counterfeit
activity. On the other hand, counterfeited products are mostly traded in black market and shipped
around the world without paying taxes to the government, this situation seems to affect the whole
economy of country. While analysing core impact of counterfeiting, the act is growing globally and
To emphasize, rising usage counterfeit products globally has dominated the domestic market as
well. We think that, we would get chance to consume almost same commodity in cheaper price but
in reality, the revenue generated by this trade has neither contributed to the original brand nor to
our local economy. Lastly, unhealthy trade makes the whole economy suffer negatively which
might stop growth of each and every development, from investment of money in business to
investment in infrastructure.
4
5.0 Finding
Increasing uses of internet has facilitated counterfeiters to spread their market to all around the
globe which has affected almost all top companies around the world. The transactions made by
counterfeit products are booming and estimated 1.7 trillion in 2015. The table bellows illustrates
the figure of estimated price of counterfeit products in 2008 and 2015 prepared by International
Because of counterfeiting the transactions of counterfeit products has been extended and the
transactions of finance is being increasing. The consumer buying counterfeit product is being
deceived because they buy trusting original product, unknowingly they buy pirated products. It is
beneficial to the consumers of developing countries where they can find similar branded product in
cheap price.
5
6.0 Conclusion
During preparing this report counterfeiting activity found rapidly growing around the world and
affecting both consumers and companies economically. Counterfeiters are getting benefecial
advantages from their infringement which is supposed to be earned by main company or brand
who produce branded products and set their image in the market. Now a days, the area of
counterfeit products has victimized most of the products which is consumed on daily basis to
6
7.0 Recommendation
Its is recommended that, every parties and sector should act against counterfet products by either
refusing or stopping buying pirated products. It might seems affordable for a while but when it
enters in the market and start black marketing the every products, the government will face huge
loss which is also considered as every citizens of the country. Thus, government should strictly act
upon this iligitimate trade and observe the market day by to to acknowledge the fake product. An
anticounterfeiting strategies and policies should be followed up by both brand owners and
government seriously. Counterfeit products are mostly imported from developing countries and
supplied to Middle East, Europe and America. Hence, supervision on border, airport and seaport
costume should be given more priority to stop this trade. Internet has played vital role to
emphasize ilicite trade of counterfeiting, so the social networ developer also should help
comapanies and government to identfify the connectivity between traders and block the
Overall, everyone must ’say no’ to counterfeit products and should perform genuine buy and sell to
7
8.0 References
Commerce, I. C. o., 2016. OECD report shows growth in counterfeiting, losses to global economy. ICCWBO,
pp. http://www.iccwbo.org/News/Articles/2016/OECD-report-shows-growth-in-counterfeiting,-losses-to-
global-economy/.
ICC, 2011. Estimating the global economic and social impacts of counterfeiting and piracy, London: Frontier
Economics Ltd.
Zurich, E., 2007. Problem-Analysis Report on Counterfeiting and Illic , s.l.: July.
Zurich, E. & Research, S., 2007. Problem-Analysis Report on Counterfeiting and Illicit, European Union:
BRIDGE.