Market for Fake Luxury in India to Double
23 January 2014
The fake luxury goods market in India is expected to reach Rs56 billion (US$9 million) at a growth rate twice as fast as the genuine products, according to an analysis of the trade in counterfeit luxury goods.
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) said that the market for counterfeit luxury goods is growing at almost 40% to 45%, “driven by web shopping portals that account for over 25 per cent of the fake luxury goods market in India.”
DS Rawat, secretary general of the ASSOCHAM, said that the majority of counterfeit luxury goods, 80% of which are from China, comprise handbags, watches, shoes, clothes, hats, sunglasses, perfume and jewellery.
Consumers who cannot afford genuine goods purchase counterfeits through online shopping websites, who have their domain names registered outside India’s jurisdiction, said Rawat.
“The luxury brand owners and online service providers need to work in tandem to address the sale of counterfeits and protect trademarks over internet,” he added. “Shopping websites should also take concrete steps to educate their users about sale-purchase of fake products and its repercussions.”
He suggested means for luxury goods makers to fight counterfeits, including having authenticity certification and multi-channel protection program.
“There is an urgent need to educate customers on brand heritage and create awareness about original products as they cannot be substituted,” Rawat added.