Language
Country/Area
No result found
In global trade, counterfeit goods already account for 2.5% of the market! Why can't such large-scale theft be stopped?
Counterfeit goods are goods that are illegally manufactured or sold without the authorization of the brand owner, often in violation of trademark laws. These items are found in nearly every industry, ranging from luxury goods such as designer handbags and watches, to everyday-use electronics and pharmaceuticals. These counterfeit goods are often of poor quality and may even pose risks to the health and safety of consumers.
In global trade, the market size of counterfeit goods is estimated to be US$464 billion, accounting for approximately 2.5% of global trade.
According to a report by the Organization for Economic Cooperation and Development (OECD), counterfeit goods have become a part of global trade in 2019, and it is predicted that sales of counterfeit and pirated goods will reach 1.67 trillion euros (approximately US$1.89 trillion) by 2030. This phenomenon raises the question: Why can't such large-scale theft be effectively prevented?
Economic Impact
Counterfeit goods not only damage the goodwill of brand owners, but also affect the functioning of the global economy. The OECD estimates that counterfeit products accounted for 2.5% of global trade in 2019. Among imported goods in the EU, the rate of counterfeit goods is even as high as 5.8%. This means that counterfeiting has become a threat that cannot be underestimated in the global economy.
According to reports, China produces 80% of the world’s counterfeit goods, which has had a huge impact on the U.S. economy.
Not only that, but the creation of counterfeit products has also contributed to the growth of criminal activities, such as drug trafficking and human trafficking. Some studies indicate that the sale of counterfeit goods may directly fund terrorist activities.
Scope of counterfeit goods
The scope of counterfeit goods covers many fields, including luxury goods, consumer electronics, pharmaceuticals, etc. For example, the trade in counterfeit medicines costs US$217 billion annually and poses a significant threat to public health. It has also been reported that many counterfeit drugs may contain harmful ingredients because they do not meet safety standards.
The growth of online sales and counterfeit goods
With the rise of e-commerce, the sales channels for counterfeit goods have become more covert. According to a 2018 U.S. Government Accountability Office report, 79% of Americans have purchased goods online and found that some goods sold by large retail websites were actually counterfeit. Online sales of counterfeit products reached $1.7 trillion in 2017 and are expected to continue growing.
The Internet allows counterfeit sellers to hide their identities, and globalized sales channels make crackdowns difficult.
Consumer behavior and cognition
From a psychological perspective, consumers' cognition and behavior towards counterfeit goods has also become an important issue. Some consumers do not care about the origin of counterfeit goods and think that as long as the price is cheap, it is worth buying. This tolerance for criminal behavior has only fueled the development of the counterfeiting market.
Furthermore, it is difficult for brand owners to combat counterfeiting, especially across national borders. How do consumers view the ethical issues surrounding counterfeit goods? Will this change in the future? This is an issue worth thinking about.
