The market for fake luxury goods in India is growing at twice the rate of genuine luxury products.
Growing at a compounded annual growth rate of almost 40-45 per cent, the counterfeit luxury products market in India is likely to more than double to Rs5600 crore ($911 million) from the current level of about Rs2500 crore ($450 million), apex industry body ASSOCHM said.
The size of counterfeit luxury industry in India is currently about five per cent of the overall market size of India’s luxury industry which currently is worth over $8 billion.
“Over 80 per cent of the entire imitation luxury products in India come from China,” said D.S. Rawat, secretary general of ASSOCHAM.
“The majority of counterfeit luxury goods sold comprise handbags, watches, shoes, clothes, hats, sunglasses, perfume and jewellery.”
There is an urgent need to educate customers on brand heritage and create awareness about original products as they cannot be substituted, says Rawat.
“Certification of authenticity and quality of products by luxury goods makers, digital serialisation/authentication, multi-channel protection program and inclusion of appropriate technologies into product or label are certain effective tools which can be employed by luxury goods’ manufacturers to combat counterfeits,” he said.
With the online luxury market worth about Rs17,000 crore (nearly $3 billion) growing at over 20 per cent CAGR, internet has surely evolved as one of the most powerful means for counterfeiters as it provides them with simplified additional channels to promote and sell fake products to consumers, it says.
“Many aspiring consumers not able to afford originals deliberately purchase counterfeits as global websites selling fake products ship them after receiving online payment,” 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.”
