Impact On Counterfeiting- Current Market Response
- May 1, 2020
- Posted by: Netrika
- Category: Brand Protection
Covid-19: Impact on Counterfeiting The invention of e-commerce websites has brought a revolution in the way we shop today. The lockdown plus WFH is also leading to new online shopping behavior. Office hours are turning into shopping hours, especially for essentials (as shown by data shared by companies) and thus, giving a way forward to the online businesses to boom amid the Covid-19 outbreak. The increasing trend of online shopping during this specific period especially has given tremendous opportunities to the counterfeiters to attack a reputed brand & make profit, all under the cloak of anonymity. Since the consumer today is more focused on possessing the products due to its limited availability and not bothered much to check the quality they are getting, the e-commerce website grants innumerable opportunities to the fraudsters & grey market profiteers to process illicit sales. These fraudulent practices are not just limited to one product/website but have affected the entire online marketing business. For a brand, the proliferation of counterfeit products online majorly impacts the customer buying behavior. The continuous supply of faulty and substandard goods leads to lost trust in the brand amongst consumers, further impacting the brand’s reputation in the market and its sales too. For consumers, there are serious safety risks since they are not aware that the fakes are not put through the same rigorous health, safety, and quality checks as their legitimate counterparts. To protect the brand from such threats, the e-commerce companies were already taking stringent steps to ensure counterfeit products do not make their way to customers. The rules were also being drafted by the consumer affairs department to make e-commerce liable as service providers. However, due to the insurgence of new cases in this testing time, extra efforts are now required to educate and create awareness amongst consumers to fight against the practice of counterfeiting.