Counterfeit Branding - Representing True Globalisation!

From cigarettes to fashion accessories to food products to medicines, more than 50% of the global market are filled with counterfeited products. Do you realise that the Nike t-shirt that you are probably wearing right now may not even exist in the design portfolio of Nike Inc. It may have been produced by a small time designer who sits in the busy lanes of New Delhi in India and charges less than $1 to give you the swoosh in any colour, any form and any design as requested! A true form of 'customisation'.

Counterfeit branding in one way is the smartest way of doing business in the 21st century. Think about it. Large global corporations spend millions of dollars developing a brand and once the brand becomes popular, millions of businessmen on the other side of the world start thinking about the strategy to increase their product lines! In other words, people running the counterfeit market seem much more smarter than an investment banker. They do their business at the cost of large corporations.

Only in India, the "fakes" market is estimated to be worth more than $2 billion and it's growing by nearly 20% every year. With the weak execution of Intellectual Property Rights and the growing corruption, there is no doubt that very soon one may find himself driving a counterfeited car! If you think it won't happen to you, think again. There are nearly 128 'known versions' of Parachute Hair Oil, 113 of Fair & Lovely cream, 44 of Vicks VapoRub, and 38 of Clinic Plus Shampoo. The reasons they are so popular with counterfeiters is because they are money-spinning brands with wide appeal, easily reproduced and sold in the Indian market. The problem is manifest across all product categories throughout the country - medicines, FMCG products, cosmetics, foodstuffs, aerated soft drinks, liquor, watches, clothes and even currency . Consumers are often unaware that they buy products that resemble what they want. This is worrying companies because fake products often ride on the success of the original product, eating into sales, and, in some cases, harming the consumer. For counterfeiters, it is the easiest thing. Put a passable product into a tube, with markings that resemble the original and market it in rural, semi-urban areas, through promoters, agents and retailers willing to make a quick buck. For most, the con job is easy to carry through.

Consider the figures. Counterfeit products comprise $200 billion a year. Ironically, it is even endemic in countries such as China, which is known for flooding the world market with low-cost priced products. In China, losses from counterfeiting are estimated at approximately 20 per cent of total sales revenues for MNCs such as Procter & Gamble ($150 million), Nike ($70 million), Unilever ($24 million), Gillette ($20 million), Johnson & Johnson ($15 million) and $6 million for BestFoods. Most of the products copied are top-selling brands and consumers could be seriously affected while consuming low quality adulterated products, particularly in the food and drug categories. These are usually manufactured under unhygienic conditions and without proper technical supervision. According to a study conducted by AC Nielsen in India on 30 FMCG companies, eight out of every ten consumers who purchased pass-off products felt cheated and only knew after purchase that the product was a pass-off. Surprisingly, 42 per cent of all the consumers surveyed were aware of the existence of pass-off brands in the market and either saw them in shops, read about them in newspapers or saw them on TV. Though brands such as Pepsi and Coke in India have dropped prices substantially to make their products the flavour of the masses, spurious products still score because of poor consumer awareness. And fake product manufacturers reap windfalls because there are barely any input costs, no safety standards involved, excise or taxes paid.

It takes more than the vigilance of a trademark team to combat smart counterfeiters. Unfortunately, say sources, the cost of the battle is to be borne totally by such companies. According to one source, adopting tamper-proof packaging and hologramming practices are prohibitive exercises that will raise prices and repel the cost-sensitive Indian buyer. Hologramming can cost between $500,000 and $5 million! Ironically, higher prices can push customers to switch product loyalties better than the best ad campaigns. Despite the seriousness, almost all the companies are vague about the methods to educate consumers. They are shying away from aggressive methods, mainly because the Indian consumers' tendency has been to totally avoid the imitated product rather than determine whether it is authentic

SOMETHING TO SPICE YOU UP FURTHER

According to the Web site of De La Rue, a UK-based commercial security printer and papermaker involved in the production of over 150 national currencies and a wide range of security documents:

·Ten per cent of perfumes and cosmetics and 11 per cent of clothing and footwear bought by consumers are fakes.

·There are around 160 Web sites offering `genuine' Chanel products, despite the fact that Chanel doesn't sell any of its products on the Net.

·The US FDA recalled $7 million worth of intra-aortic pumps used during open-heart surgery after it discovered malfunctioning counterfeit parts in the devices.

·Counterfeit baby formula resulted in some babies developing rashes and seizures after imbibing.

·US investigators discovered that more than 600 helicopters sold to US civilians and NATO were equipped with counterfeit parts.

·Fake perfumes have been found to contain urine as a stabiliser.

·Each year in the UK, it is estimated that 4,100 jobs are lost because of counterfeiting - wrecking industries and draining funds which otherwise would have reached public services.

Although the whole issue may first appear to be a simple yet rampant case of copycatting, in fact it demonstrates that there is a real need for stricter protection laws of brands, enforcement of those laws, and harsher punishments for merchants and makers of counterfeit goods. But as far as knocking out counterfeiting completely is concerned, it'll never be gone and brands need to view counterfeit products just like any other competition. Indeed "Counterfeiting will always exist. It's the subculture of the business industry in the 21st century."

Gaurav Bahirvani Brand Development & PR Strategist. England, UK.

* Special thanks to Hindu Business Line.

---

Google News Updated : Fri, 10 Oct 2008 17:49:09 GMT UPDATE 1-Bush says US moving quickly to solve market crisis - Forbes Canada.com UPDATE 1-Bush says US moving quickly to solve market crisis Forbes - 1 hour ago WASHINGTON, Oct 10 (Reuters) - President George W. Bush said on Friday the US government was moving aggressively to address the financial markets crisis, but he acknowledged that anxiety was feeding on itself as stocks continued to plunge. Bush appeals for confidence CNNMoney.com Bush Says Markets Must Remain Calm Despite Challenges Washington Post Reuters - The Associated Press - TheStreet.com - CNN all 1,456 news articles Publ.Date : Fri, 10 Oct 2008 16:33:45 GMT Coleman calls off negative ads - Minneapolis Star Tribune MinnPost.com Coleman calls off negative ads Minneapolis Star Tribune - 24 minutes ago By Patricia Lopez, Star Tribune ...and it has nothing at all to do with several outlets (including one of Franken's ads) letting us know that a Coleman ad that wants us to … read more see Franken looking out of control/angry, is actually video of ... Coleman: I'll remove negative ads and urge others to do same Pioneer Press Coleman says he'll pull negative ads to focus on economy Minnesota Public Radio KAALtv.com - The Hill - The Associated Press - OpEdNews all 460 news articles Publ.Date : Fri, 10 Oct 2008 17:25:04 GMT NATO agrees on Afghan drug role for military - The Associated Press Boston Globe NATO agrees on Afghan drug role for military The Associated Press - 1 hour ago BUDAPEST, Hungary (AP) - NATO defense ministers Friday authorized their troops in Afghanistan to attack drug barons blamed for pumping up to US$100 million (euro74 million) a year into the coffers of resurgent Taliban fighters. NATO Joins Drug War in Afghanistan Voice of America NATO to Hit Drug Trade in Afghanistan New York Times AFP - Bloomberg - International Herald Tribune - Times Online all 1,309 news articles Publ.Date : Fri, 10 Oct 2008 16:11:48 GMT States probe possible voter registration fraud - Chicago Tribune ABC News States probe possible voter registration fraud Chicago Tribune - 1 hour ago Questions about possible cases of fraudulent voter registrations were being raised this week as officials in several states investigated hundreds of questionable or duplicate registration forms submitted by an advocacy group. Carnahan statement on ACORN registration mess Kansas City Star Republicans try to tie Obama to vote fraud cases Boston Globe ABC News - Pittsburgh Tribune-Review - Inter Press Service - MyFox Tampa Bay all 1,193 news articles Publ.Date : Fri, 10 Oct 2008 16:48:10 GMT Eagles' Westbrook out for Sunday's game - Sports Network Sports-Odds.com Eagles' Westbrook out for Sunday's game Sports Network - 28 minutes ago Philadelphia, PA (Sports Network) - Philadelphia Eagles running back Brian Westbrook will not play on Sunday at San Francisco. Westbrook, who has been hampered by a sprained ankle he suffered in the Week 3 victory over Pittsburgh, fractured his ribs in ... Brian Westbrook: Ruled Out Rotowire Les Bowen: Eagles vs. 49ers: The pick Philadelphia Daily News WILM News Radio - NFL News - Kansas City Star - The Associated Press all 642 news articles Publ.Date : Fri, 10 Oct 2008 17:20:18 GMT A Cautious Approach to Gardasil Shot - U.S. News & World Report Canada.com A Cautious Approach to Gardasil Shot U.S. News & World Report - 34 minutes ago News today cheering the fact that 1 in 4 teen girls has received the Gardasil vaccine sounds to me like some serious spin from the Centers for Disease Control and Prevention, the government agency pushing girls as young as 9 to get the shot. Cancer Vaccine Used by 25% of Girls 13 to 17 New York Times Quarter of adolescent US girls received HPV vaccine Reuters WebMD - dBTechno - Wall Street Journal - eFluxMedia all 463 news articles Publ.Date : Fri, 10 Oct 2008 17:14:13 GMT Help Support Breast Cancer Awareness With Lifespring Health - MarketWatch ChattahBox Help Support Breast Cancer Awareness With Lifespring Health MarketWatch - 1 hour ago Lifespring Health will be Donating $5 to the Susan G. Komen Foundation Each Time you Shop Online This Month SUNNYVALE, Calif., Oct 10, 2008 /PRNewswire via COMTEX/ -- October is breast cancer awareness month! Go "Passionately Pink for the Cure" on Oct. 17 Atlantic News Telegraph Panera Bread to sell pink bagels Times Herald-Record SkinInc.com - BurlingtonFreePress.com - Chambersburg Public Opinion - Penn State Worthington Scranton all 68 news articles Publ.Date : Fri, 10 Oct 2008 16:05:31 GMT Rss Feed Reader Increased Web Site Traffic

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

Wealthiest 10% of Americans Name Top Quality Brands for 8 Products in New Survey

The seventh in a continuing series of twice-yearly surveys by... Read More

Build Brand Value BIG Time

Ask your self this question, In which business are we... Read More

Standing Under the Umbrella And Still Getting Wet

Make More Money Making a Name for YourselfCalling all realtors,... Read More

Hawaiian Heirloom Jewelry

Back to the era of the Hawaiian monarchy, the origin... Read More

Power Your Word for Profit

Discovering and owning a powerful word that reflects you and... Read More

Brand Extension; Going from Consumer to Commercial

As more and more home pressure washers are sold at... Read More

Types of Logos

There are three basic types of logos: text, symbol, and... Read More

Product Positioning for Enterprise Software and Information Technology Companies

Good marketing positioning is like good lying. No, we're not... Read More

How a Great Tagline can Help your Business

"Just do it." "We try harder." "The Ultimate Driving Machine."... Read More

Simple Risk Reversal Formula Will Send Your Sales Into Space (1 of 2)

Make A Bold Promise Then Back It Up With An... Read More

The New Branding Awareness - A Value Based Concept

The new branding awareness is about when you take ownership... Read More

Tips for Creating Brilliant Business Names

Imagine if Yahoo! had been named TheInternetDirectoy. Or StarBucks was... Read More

Understand Brand

Branding has been defined, explained and examined extensively. There are... Read More

Good Logos Make Great Sales Tools

Every day, the average person is exposed to millions of... Read More

Are You Brand Worthy?

Branding is one hot topic, although it is wildly misunderstood.... Read More

Company Vehicles Have Advertising on Them; Tips on Driving in Parking Lots

Try to avoid backing up whenever possible. Occasionally some one... Read More

Eye On The Pie: Branding From an Investors P.O.V.

When building a business as a brand it's important to... Read More

Setting the Right Price

One of the ways people get to know you is... Read More

Trademark: Do I Need One for My Business Name and Logo?

Wondering if a trademark is important to you as a... Read More

Profitable Partnering

Become your customers top-of-mind choice.Some of these snapshots of real... Read More

Branding Services - Brand Identity Guru

Branding Services is a tactic that marketing executives and managers... Read More

Is It Legal? - Indecent Naming With Tradition

When Mitsubishi launched a new car with the name "Pajero"... Read More

Donald Trump On Branding - Brand Identity Guru

Love him or hate him, one thing is certain: Donald... Read More

Trademark Your Business ? Lessons Learned

Small business owners learn many lessons the hard way -... Read More

Logo Design - Branding - Brand Identity Guru

Do you have any idea how important your company logo... Read More