Protection from counterfeits in fashion industry
According to study of the world fashion market by the International Organization for economic cooperation and development (OECD):
volume counterfeit sales of Louis Vuitton fashion accessories relative to tis annual authentic sales.
offered counterfeit products of Alexander Wang brand in 2016, in the United States only.
estimated annual losses of French economy due to fake branded accessories.
Principal threats of counterfeit goods for consumers:
- By purchasing illegally labeled accessories, consumers not only get low-quality products at unreasonably high prices, but also endanger their health;
- Counterfeit accessories are manufactured without regard to applicable safety and quality standards and may contain harmful substances. Fabric used is likely to be synthetic and can cause allergies and dermatitis;
- Counterfeits may seriously affect a fashion house’s reputation. In 2005 for example, Burberry was forced to abandon its signature plaid; due to the fact that the English chavs (anti-social youths) were fond of copying t-shirts and caps with trademarked plaid;
- Counterfeit products are harmful to the economy, reduce manufacturers’ revenue and depress authentic production volumes, and in addition often present a health hazard, especially for children;
- Reputation damage to original brand is acutely tangible due to cutthroat competition in the fashion and design industries;
- Consumers risk paying authentic product price for counterfeit low-quality products.