The market for ‘authentic and legitimate’ footwear is booming. The demand for trendy new footwear, particularly sneakers, has skyrocketed due to numerous celebrities endorsing various fitness and shoe brands. The luxury shoe market has generated an impossible demand for items that the counterfeiting industries are eager to meet due to the high prices set by luxury brands to protect their uniqueness.
With the increased fashion hype, the markets are experiencing an even more sprut in counterfeiting and duplicity! The footwear industry is one of the worst hit, losing $500 billion to counterfeiting annually. The numbers are massive, and so is the loss.
Why Are Shoes and Sneakers Among The Most Counterfeited Items?
In the last few years, we have seen considerable growth in the shoe industry; whether it is about fashion shoes or sportswear, we have seen a continuous change in trends and styles. Nowadays, celebrities endorse particular brands, making the competition much more challenging. But it has also been noticed that there is a rise in the production of imitation shoes. One of the biggest reasons counterfeiting is abundant in the shoe industry is the high demand and price. Not every consumer can afford the cost of luxury footwear, so they prefer imitation products or fake shoes. The price of luxury brands is about ten times higher than the original product. So more and more consumers are choosing replicated items at less cost, which is why the process of counterfeiting is increasing rapidly.
Furthermore, these replicated shoes are hard to distinguish from the original product as they are imitating correctly by maintaining the standard, color, design, and finish. Therefore a lot of customers are even unable to spot the differences. Due to all these reasons, counterfeiting is quite common in the shoe industry.
The Adverse Effect On Big Brands
Counterfeit products not only affect consumers but also aid in the destruction of the brand’s reputation. Therefore, counterfeit products are a severe threat to the business as they result in a loss of sales generation and affect overall revenue generation. In simple words, forgers or counterfeiters sell a product that looks and feels the same as the actual one but at a lower price; therefore, authentic brands will lose sales. The following ways can create an adverse effect.
- Reduce the overall sales of the original products as the fake products can be found at a very reasonable price
- It harms the brand’s overall reputation
- Leaving organizations to deal with the issues
- Damaging the long-term relationship built with business partners and consumers
- Pushing brands to spend more time and money to take action against the fake products
How Counterfeiting Effects On Consumers
The process of counterfeiting affects a consumer in various ways. Here, we have jotted down a few effects of using fake footwear and how it affects the overall world economy
- In a recent study, it has been revealed that the global economy loses around 200 billion per year due to the usage of counterfeit goods
- It doesn’t use or support tax which further impacts a lot on the worldwide economy
- Counterfeiting also causes loss of jobs as every year, a vast amount of employees lose their jobs due to this reason
Need For Anti-Counterfeiting Solutions
It can be understood that counterfeiting will harm the brand, consumer, and economic growth. Therefore the need for anti-counterfeiting solutions is rising. Luxury brands are using various techniques to combat these burning issues and regain their reputation. Digital and physical high-tech solutions are available, but expert advice is needed.
Conclusion
Counterfeiting is a global problem, and the footwear industry is the worst sufferer. LetsVeriFy is a trusted name in the corporate sector for providing excellent anti-counterfeiting solutions. Contact them in case of any further queries, and they will help you to combat any issues.