Media outlet Daily Luxury examined the issue of counterfeiting in the luxury goods segment, an industry which is expected to reach US$2.8 trillion by 2022 and one which brands spend millions in legal fees to fight against, citing findings from a study by market intelligence provider Fashionbi, “The Problem of Counterfeit Fashion”.
According to Luxury Daily, global counterfeiting has risen because trust in brand heritage has been damaged, status increasingly trumps quality or craftsmanship, and marketplaces such as Amazon, eBay and social media make it difficult for brands to keep track of fakes while counterfeiters can lure shoppers with discounted prices.
Brands such as Dior, Chanel, Prada and Gucci are among the most counterfeited.
Luxury Daily advises brands to educate consumers about how to differentiate between authentic and fake goods, utilising image databases or website verification tools. Some brands are said to be incorporating Near-Field Communication (NFC) smart tags and working with blockchain platforms to allow consumers to authenticate purchases.
While such technology can help fight against counterfeits, Luxury Daily stresses that it is essential for brands to justify price points and convince consumers that high-end goods are worth the investment. An emphasis on craftsmanship in marketing and products themselves can establish a brand identity, while prioritising local sourcing and production also bolsters perception of authentic artisanship, explains Luxury Daily.
An example of this can be seen from Italian fashion brand Fendi, which showcased the intricacy of the handiwork of its artisans in a film series focusing on craftsmanship called “Hand in Hand”.
Source: Luxury Daily