“Twenty-three percent of respondents to MarqVision’s survey said they do not have adequate resources to prevent counterfeit goods. We didn’t have a documented strategy for
A report released Wednesday by MarqVision found that 68% of direct-to-customer (DTC) brands have counterfeit products. This report surveyed his 295 representatives of his DTC brand around the world.
The report also provides information on how concerned DTC brands are about IP infringement and counterfeiting. According to the report, the DTC market has tripled in the last five years and now accounts for $1 for every $7 spent.
Additionally, MarqVision asked survey respondents where counterfeit goods are sold. The most frequent culprits were her fake websites masquerading as genuine brands and major US marketplaces such as Amazon and eBay.
Fortunately for the brands surveyed, 88% of them were able to remove the counterfeit products after they were identified.
“Counterfeiting is one of the biggest threats brands face in 2023, but the problem can be solved if brands discover where their products are being counterfeited, usually on fake websites or major online marketplaces. Marc Vision.
methodology
The company used Pollfish to survey 295 individuals from companies around the world. Survey respondents included directors, executives, owners and senior management. About 70% of those surveyed represented US companies.
About half of the brands surveyed sell apparel and accessories, with home and health products being the second and third most sold products among the 295 respondents.
The majority of respondents are relatively new brands, with 82% of respondents starting selling their products after the COVID-19 pandemic began.
The majority of sales from survey respondents were made through large marketplace websites such as Amazon and Alibaba. 28% of his sales came from his website for the company itself.
Most counterfeiters found on fake websites or big marketplaces
Counterfeit goods were identified in a variety of online sources, with many respondents saying they found counterfeit goods on multiple websites, according to the report.
Of those respondents who reported that their products were counterfeit, 59% found fake websites made to look like their own sites selling counterfeit products. A close 56% of respondents reported finding counterfeit goods on major US e-commerce platforms such as Amazon and eBay.
Many of the brands surveyed were also affected by counterfeit goods in markets outside the US, with 41% of respondents reporting finding counterfeit goods on sites such as Alibaba. Respondents to the survey report that foreign markets are the most difficult to weed out for counterfeit goods.
Social media also plays an important role in sales and e-commerce, with a quarter of survey respondents finding counterfeit branded products sold on social media websites.
counterfeit removal
The biggest loss for most businesses isn’t lost revenue. 72% of counterfeiters said their biggest impact was damage to their company’s reputation.
Most companies have been able to get rid of counterfeits. However, this process has not always been easy.
Nearly half of respondents reported that Asia-based marketplaces such as Alibaba and Taobao are the most difficult websites to remove counterfeit goods. And of his 12% of brands that didn’t pursue legal recourse to get rid of counterfeits, the majority said they didn’t because the counterfeiters were out of their jurisdiction.
Additionally, detecting counterfeit goods on foreign websites was the number one brand response to the question of what is the most difficult challenge in protecting IP.
Has counterfeiting increased during the pandemic?
One factor that may have increased counterfeiting was the surge in e-commerce during the COVID-19 pandemic.
74% of survey respondents reported an increase in counterfeit goods since the outbreak of the pandemic.
A 2022 report from the European Union Intellectual Property Office (EUIPO) similarly found a “several” rise in counterfeit goods during the COVID-19 pandemic.
“The COVID-19 pandemic has created new business opportunities for criminals to distribute counterfeit and substandard goods,” said Catherine De Bolle, Executive Director of Europol.
How brands protect IP
According to a 2020 report from the United States Patent and Trademark Office (USPTO), “counterfeiting is the world’s largest criminal enterprise.”
However, 23% of respondents to MarqVision’s survey said they do not have adequate resources to prevent counterfeit goods. Additionally, 29% of the brands surveyed did not have a documented strategy to combat intellectual property infringement.
“To be successful in the fight against counterfeiters and to minimize the damage, prioritizing the creation of a brand protection strategy is imperative,” Lee said.
MarqVision not only published data from the survey, but also provided tips on how brands can protect their IP and prevent counterfeiting.
The first and most important point MarqVision discovered from its research was to obtain a registered trademark in every country in which the company plans to operate. Survey data shows that 92% of companies who file intellectual property infringement lawsuits win, likely due to “properly placed trademarks.”
Additional tips include adopting a global monitoring strategy, either manual or automatic, and keeping abreast of the latest trends and news in the IP space.
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Author:72soul
