08 Abr The Future of Fake
The fake industry is a global success story. For sure, their business is extremely shady, often backed up by organised crime and marked by unscrupolous behaviours. But despite all the costly efforts to enforce intellectual property rights, close down and sue fakers or enlighten costumer to not buy fakes, the fake industry expands. To be so successful, this industry has to do something right. Trendbuero examined the fake industry to find out what brands can learn from these untold success stories.
1. Consumers: Fakes offer what brands don´t.
Let´s face it: Consumers want fakes, many buy them on purpose and many are aware of the consequences of their doing. They buy fakes nevertheless, because they need good-enough-solutions. They want to be part of modern consumer society, even if they can´t afford it. And don´t they have a right to do so? Especially the emerging middle class in China buys fakes. All too often there is no suitable alternative to fakes as they are the best solution in that price segment. And aren´t fake buyers brand lovers who aren´t willing or able to pay the premium?
2. Brands: Fakes reveal the brand gap.
Brands face massive challenges. While companies and stock markets overvalue brands, customers loose the trust in many brands big time. There is a growing gap between the perceived values of customers and companies. Especially as many brands still define themselves by their products. But products can easily be cloned these days. What no faker can copy are personal relations. But instead of finding new ways to bond with their customers, companies invest heavily in the enforcement of intellectual property rights. But these efforts become more and more difficult in the digital and global age. And with money being short, many companies will have to reconsider their IP strategies. The costs will rise higher than the benefits. This calls for new ways to deal with the fake industry.
3. Fakers: They are the brand´s shadow.
The fake industry has become very sophisticated in recent years. Products have become of a high quality. Often they are produced in the same factories. So the only difference between a fake and the original is the authorisation. But this business is a retail business. The fake industry is very competitive and demand driven and therefore has to be innovative. It is not about what fakers are able to copy. It is about what really sells. Retailers place the order at the factories who then start to produce. And even these retailers perceive uptrading strategies. In countries like China, fakes are sold in nice and neat little boutiques as well. While in the Western world fakes are sold openly over the internet. Retailers also invest in building customer relations, offering services, newsletters etc. Sooner or later these retailers will become store brands and be the next H&M or Zara.
Conclusion: The war against fakes is not over. But new ways of dealing with fakes are required. Instead of fighting hydras it is important to turn to those customers who are excluded, those who are not willing or able to pay for the premium. After years of strategies of „exclusiveness“ there is an urgent need for more inclusiveness. This is not an approach to heal the world. It is about tapping into new sources of revenue and finding new customers. In order to do so brands need to find out more about the motives of customers and the fakers, to better know them and maybe even collaborate with them. Like it or not, the fakers will be the new competitors of tomorrow. So, let us start today to reconsider. If we don´t than a growing part of our economies is controlled by organised crime.
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