E-COMMERCE
Study reveals nearly half of
brands lose sales to counterfeiting
NEW research from US software
company MarkMonitor revealed that
almost half (47%) of brands lose
sales revenue to counterfeit or pirated
goods, with one in three reporting a
loss of more than 10%.
The research also found that 58%
of respondents agree that keeping a
brand safe will become increasingly
difficult over the next five years, with
challenges coming from the areas of
artificial intelligence (AI), the dark
Web and augmented reality (AR).
In addition, 41% of brands
indicate they are already experiencing
an increase in brand infringement,
while 38% believe they are more
likely to be affected by lost sales due
to counterfeit goods in the next five
years.
“The issue of brand protection
has always been a challenge for
businesses and it’s an area that is
growing significantly based on the
increasing threats of counterfeiting,
piracy, cybersquatting and other brand
abuse,” said Chrissie Jamieson, VP
Marketing, MarkMonitor. “According
to the research, brand protection will
continue to grow in complexity and
as a result, it’s vital that organisations
adapt their approaches accordingly.
“Brand protection involves a lot
more than taking care of the brand
itself,” explained Jamieson. “Critically,
it’s about maintaining customer
trust and protecting consumers from
the dangers posed by counterfeiters
and online criminals. Our research
reflected this notion, showing that
the overriding objective of brand
protection strategies is to ensure that
their customers are safe.”
The study was conducted
last November, on behalf of
MarkMonitor by independent
market research firm Vitreous
World. The goal of the study
was to examine the attitudes and
perceptions of marketing decision-
makers about online brand
protection, as well as their challenges
and the state of the industry.
Founded in 1999, MarkMonitor
develops software intended to
protect corporate brands from
Internet counterfeiting, fraud, piracy
and cybersquatting.
Retailer‘s perspective
Retail Asia spoke to Asia’s online
shopping company, Qoo10, on how
it curbs counterfeit products, and
Hyunwook Cho, country manager,
Singapore, Qoo10, affirmed that the
website’s goal is to be a responsible
e-commerce player and therefore,
it has put various internal systemic
protocols in place to check and deter
the sale of counterfeit items.
There are two ways by which
Qoo10 handles the sale of
counterfeit products — proactively
and reactively.
“Firstly, Qoo10’s backend system
actively monitors the numerous
listings that our sellers post on the
online platform. Where a listing
is flagged for potentially infringing
intellectual property (IP) rights or
selling counterfeit products, our
dedicated compliance team then steps
in to investigate and take necessary
action against the infringing seller,” he
explained.
Secondly, the website’s compliance
team also actively responds and reacts
to claims by customers, sellers and
businesses or brands. Customers who
suspect that they may have purchased
a counterfeit item from a Qoo10 seller
may alert its compliance team who
will then investigate and issue a refund
to the customer. Anyone who suspects
that a listed product is counterfeit may
also report this issue to the compliance
team with the “Report” function
found on every listing on Qoo10’s
online platform.
The compliance team also works
with businesses and brands under
its ‘Brand Protection Programme’ to
take down infringing listings. Errant
sellers with repeat offences may also be
restricted from selling their items on
Qoo10, the e-tailer said.
Cho added: “While Qoo10 takes
the position that it is merely an
online platform that connects both
sellers and buyers and assumes no
responsibility for the products sold on
its online platform, it views the sale
of counterfeit products on its online
platform as no laughing matter and is
committed to the active monitoring
and takedown of such infringing
listings.” ra
As many as
41% of brands
indicate they
are already
experiencing
an increase
in brand
infringement,
while 38% be-
lieve they are
more likely to
be affected by
lost sales due
to counterfeit
goods in the
next five
years.
Retail Asia May 2018
27