Retailers to Promote Ethical Creation of Luxury Goods vs Counterfeits


"For some shoppers, buying fake goods can be about as good as the real thing, reports Retail Dive. It's not clear how big the global counterfeit market is, but research suggests it costs American retailers a sizeable amount of lost revenue. Per a 2018 report from the U.S. Government Accountability Office, the Customs and Border Patrol seized an estimated $1.38 billion worth of knockoff merchandise in fiscal year 2016 alone."

"Counterfeit sales were a problem long before digital marketplaces emerged. Now, online sales of fake merchandise have become a growing problem for retailers. While some consumers mistakenly purchase knockoff merchandise, a notable number of consumers find it perfectly fine to buy fake goods and have done so on purpose, multiple experts told Retail Dive."

"While some see buying fake merchandise as having no negative impact, consumers may not be aware of the risks associated with doing so, such as lost tax revenue as well as supply chain problems like child labor, human slavery and organized crime, Barclay, chief strategy officer at Incopro, said."

"While some brands view counterfeit goods and an ethical supply chain as merely a legal matter, the brands that invest in communicating the downsides of knockoff merchandise do a better job of explaining the significance of issues, Barclay noted."

"'You're still kind of relying on that consumer being proactive and wanting to check things,' Barclay said. 'Those [retailers] that view it as part of their marketing, part of their duty of care to their consumers, invest much more into it.'"

"As for brands that sell their goods through online marketplaces, the brands have to figure out how to effectively tell their brand story on these platforms, said Keri Rhodes, marketing director at etailz. Brands could take advantage of explaining the downsides of counterfeiting, Rhodes said."

Fashionistas may be swayed to stop buying counterfeit products once they learn the slave or child labor is part of the supply chain. Retailers can enlighten them through both traditional and digital advertisements. According to AudienceSCAN, Fashionistas are 60% more likely than others to find ads on social media useful and 33% more likely to take action after seeing ads in magazines.

AudienceSCAN data is available for your applications and dashboards through the SalesFuel API. In addition, AdMall contains industry profiles on fashion accessories stores women's apparel stores, as well as lead lists at the local level. Media companies, sales reps and agencies can access this data with a subscription to AdMall from SalesFuel.

Rachel Cagle

Rachel Cagle

Rachel is a Research Analyst, specializing in audience intelligence, at SalesFuel. She also helps to maintain the major accounts and co-​op intelligence databases. As the holder of a Bachelors degree in English from The Ohio State University, Rachel helps the rest of the SalesFuel team with their writing needs.