Consumer Goods Industry

Counterfeiters remain the primary challenge for consumer goods companies


The sale of counterfeit goods — from luxury and sporting goods to everyday items like shampoo and cigarettes — thrives on the Internet. In fact, criminals have created a virtual supply chain with fake goods being sold in bulk to wholesalers on popular business-to-business (B2B) marketplaces and then resold to consumers via fraudulent listings on consumer marketplaces or rogue e-commerce websites.

Sophisticated counterfeiters employ savvy marketing tactics to confuse consumers and intercept Web traffic, including illicit promotions in search and social media, and as is especially the case with luxury goods, spam. Legitimate brands pay a heavy price: lost revenue, flagging demand, angry channel partners, skyrocketing warranty and service costs, and increased product liability as consumers are duped into buying sub-standard goods. Brands risk losing their cachet as brand equity erodes and customer trust diminishes.

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