For brand holders within the automobile and aerospace sectors, staying one step ahead of online counterfeiters is vital. Today’s cyber-criminals are clever, and the counterfeit market continues to grow as fake websites look more realistic and illegitimate offers are made more enticing. As a result, you need to invest in strategies that prioritize brand protection.
Fake parts pose a serious safety risk – and can lead to major reputational issues. Unauthorized use of your intellectual property will divert traffic from your brand and expose your customers to counterfeit goods. Customer diversion results not only in loss of revenue but also a dilution of your brand equity.
Fake recommendations on social media and peer review websites create a ‘false economy’ for potential customers. A lack of visibility in the social media and app marketplace environment can lead to the distribution of counterfeit goods and confidential manuals, leading again to loss of revenue and reputational issues.
The sale of counterfeit goods represents between 5% and 7% of all world trade, whilst the value of the global black market for counterfeit auto parts is estimated to be worth $45 billion
Globally, 22% of customers have knowingly purchased fake products
The World Trade Organization estimates that the counterfeiting of auto parts around the world results in the loss of some 250,000 jobs
The Automotive Component Manufacturers Association of India has reported that up to 20% of all road accidents in India are due to counterfeit auto parts
In July, luxury brands won a significant victory in their battle with the billion-dollar online counterfeit industry. The Court of Appeal in London ruled that Richemont, owner of Cartier and many other prestigious labels, could ask internet service providers to block access to websites selling counterfeit goods.
It’s not been the easiest of times recently for luxury fashion labels as the cost of counterfeiting to their brands continues to grow. In the NetNames report Counting the cost of counterfeiting, published in 2015, we reported that the sale of counterfeit goods online alone increased 15.6% year on year, whilst counterfeiting and piracy are estimated to cost G20 governments and consumers more than $125 billion each year – and have destroyed 2.5 million jobs worldwide.
This report draws data from a wide range of reliable sources to provide an estimate of the shape and size of the piracy universe. It is based upon an in-depth study of a range of ecosystems commonly used for the distribution of infringing content.
The world has changed. Today, the average person spends 169 hours online every month, devoting more time to surfing the web than watching television, and browsing Facebook for longer than they read a daily newspaper.
National Wine Day today (May 25) is the perfect excuse for consumers to enjoy their favorite tipple and try out some new wines; however it is also a chance for producers and retailers to raise awareness of the darker side of the alcohol industry - counterfeit products.