India’s fake luxury market ‘to double’ in a year
16/01/2014
“The market for fake luxury goods in India is growing at twice the growth rate of genuine luxury products and is largely being driven by web shopping portals that account for over 25% of the fake luxury goods market in India,” it said.
The size of counterfeit luxury industry in India is currently about 5% of the overall market size of India’s luxury industry, which currently is worth over $8 billion, according to an ASSOCHAM-Yes Bank study.
“Over 80% of imitation luxury products in India come from China,” said Mr D.S. Rawat, secretary general of ASSOCHAM.
He said with a share of about 7%, fake luxury products account for over $22 billion of the global luxury industry.
“More corrective measures need to be taken to lock down the emergence and continued existence of counterfeit goods market in the form of effective intellectual property enforcement, plugging loop holes in the legal and judicial structure and higher conviction rates since the absence of these measures collectively lead to the global brand‘s equity getting diluted and reduced consumer trust in their brands,” he said.
“There is an urgent need to educate customers on brand heritage and create awareness about original products as they cannot be substituted. Certification of authenticity and quality of products by luxury goods makers, digital serialisation/authentication, multi-channel protection program and inclusion of appropriate technologies into product or label are certain effective tools which can be employed by luxury goods’ manufacturers to combat counterfeits.
“Many aspiring consumers not able to afford originals deliberately purchase counterfeits as global websites selling fake products ship them after receiving online payment. Most of these websites delivering fake luxury stuff in the country have their domain names registered outside India’s jurisdiction.”
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