Research Proposal

Anti-Counterfeit Market Analysis

Goals

To understand the anti-counterfeiting market in order to structure a business idea.

Early Findings

  • The counterfeit fashion industry which includes clothing, textiles, footwear, handbags, cosmetics, and watches is worth about $450 billion globally.
  • Louis Vuitton budgets about €15 million annually for its fight against counterfeit product and they have an internal legal department dedicated to the fight.
  • Countries in the European Union lose about "$27.7 billion of revenue annually from counterfeit goods, according to official EU statistics." This represents about 10% of the total gross sales in the industry.
  • Luxury brands in some countries have formed unions to fight counterfeit products. For instance, the Anti-Counterfeiting Group is a "UK-based trade body whose members include Burberry, Michael Kors, Hermès and Jimmy Cho".
  • The Anti-Counterfeiting Group worked with the government in the UK "to find more than 80,000 counterfeit items, with a total street value of £3.5 million (about $4.3 million), though this represents a tiny fraction of the overall trade in fakes in the UK."
  • Most luxury fashion brands are also part of the International Anti-Counterfeiting Coalition, however, Gucci and Michael Kors walked out of the group in protest after Alibaba was allowed to join the International Anti-Counterfeiting Coalition. Gucci and Michael Kors view Alibaba as one of its major adversaries in their fight against counterfeiting.
  • We were unable to find data on how much Gucci, Tiny Cottons, Bobo Choses, and Michael Kors dedicate to fighting counterfeits annually during our preliminary research.
Prepared By
Emmanuel A.
2115 assignments | 5.0