How counterfeiting affects the luxury market

Counterfeited and pirated goods accounted for up to 2.5 percent of world trade, $461 billlion, demaging companies and state coffers.

The trade in fake products has also worsened in the past decade. The organisation for Economic Cooperation and Development (OECD) in previous study of 2008 estimated it up to 1.9 percent of the world imports, $200 billion.

Recent studies assert that the impact of counterfeiting is greater for rich countries, where most of the companies, making the higlhy desiderables branded goods, are based. European Union imported up to 5 percent of fake goods in 2013, $116 billion.

Same studies appoint China as the largest producer of counterfeited products. The reason of this increasing phenomeno can be found in the emergence of globalised value chain and in the booming e-commerce as distribution channel.AAEAAQAAAAAAAAQuAAAAJGVmZDNiM2Q4LWM4MzItNDY0MS1hMGVlLTRhZTkxZjdkYTU2MQ

Just few days ago the counterfeiting issue came up on magazines because Alibaba, the Chinese e-commerce giant, signed to become member of the International Anti-Counterfeiting Coalition.

The reaction of some brands such as Gucci and Michael Kors has been very strong and determined. The outrage over Alibaba’s membership raises fresh questions about how effective Alibaba has been in fighting fakes as it pushes to take its e-commerce juggernaut global.

Gucci, along with other Kering Group brands like Balenciaga have quitted the International Anti-Counterfeiting Coalition and they are suing Alibaba in the New York federal court. The Kering’s brands accuse Alibaba of knowingly encouraging and profiting from the sale of counterfeit goods on its e-commerce platform.

Alibaba answered to this strong accuse just saying that it is a “wasteful litigation”.

As result of the difficult situation by last Saturday Gucci’s name had been struck from the IACC’s website and Alibaba’s membership falls into a special category, without leadership position and voting rights. The Chinise e-commerce giant asserts that being still effectively member of the IACC would allow it to work more closely and effectively with brands to proactively enforce intellectual property rights.


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