Counterfeit products have been growing in popularity, and more recently at an even steadier pace with the global shift towards e-commerce.
Counterfeiting or the act of imitating an original product with an established high value is intended to replace an original one for a cheaper price. It is considered an illegal activity for it breaches the intellectual property rights of a brand owner, profiting from their positive reputation. Moreover, it can also be considered an act of stealing and destroying a positive brand image through selling substandard lookalike items.
Regardless of all the downsides and issues that come along with supporting counterfeits, it also continues to fill in certain gaps between big businesses and the evolving needs of consumers, which is why it is unlikely to disappear without us taking massive action to fight back against it.
If you’re a brand owner, who’s spent a considerable amount of effort growing your brand through the years, it might be time to look into the security of your products and brand. Are you vulnerable to counterfeiters? Could your product be in danger of getting copied and sold for a much lower rate? These are just a few of the concerns most established brands today are experiencing with the huge presence of counterfeit trade.
Sometimes, no matter how much we try to prevent illegal activities like this from happening to our businesses, it’s not enough to simply address the counterfeiters head-on, who are likely difficult to trace in the first place.
Looking into the psychology behind consumers who support and buy counterfeit items might be a good place to start addressing this. The moment we look at things from the market’s perspective and consider their motivations, we might be able to come up with more effective ways to address the problem directly.
2 Types of Counterfeit Product Purchases
To understand the motivation behind consumers who support counterfeit products, it’s important to acknowledge that not all counterfeit purchases are similar. Non-deceptive counterfeiting happens when a customer is openly aware that they are purchasing a fake item. They are aware that the product they are buying is an imitation and support it nonetheless. Deceptive counterfeiting is when a customer is unaware that the product they’re buying is fake. They believe that they are supporting the original brand, but they have no idea that they’re buying a substandard imitation of the product. This may lead to customer complaints directed towards brand owners. Non-deceptive counterfeit purchases reveal a buyer’s motivation for supporting counterfeit goods. In this type of purchase, the buyer is aware and gives their consent.
Top four reasons why people support and buy counterfeit products
1. Cheaper Price
Not everyone agrees with buying an item for a hefty amount of money. Some people cannot appreciate the value that they’re buying an item for. So they make decisions based on how the item looks upon purchase and decide how much money they’re willing to buy the item for.
One of the most common reasons why people continue to support and buy counterfeit goods is because of practicality; it’s cheaper. Some people may believe that there’s little to no difference when buying counterfeits versus original products, or that brand may be the only differentiating factor. But this is rarely the case.
When people choose to buy a fake product, they’re not only supporting an illegal business. Most of the time, they’re also settling for products with lower quality and that may not meet certain standards. In some instances, it may even contain harmful ingredients, such as the case for some counterfeit cosmetics. On the other hand, choosing to buy counterfeit electronic gadgets or automotive parts at a cheaper cost can pose some dangers, if these products did not undergo testing or fail to meet quality standards that would make them safe for use.
2. Social Pressure & Social Media Influence
We live in an age when social media is already a huge part of our lives and plays a key role in our buying decisions. From online ads to countless promotions from influencers and even people we know, we’re always just one decision away from swiping our cards and buying the items we see online.
Social media is not only a conducive place for connecting with people, it is also like a big virtual shopping center. We’re always in the middle of a lot of pressure to buy the coolest things we find online, and advertisements can come from either an influencer or directly from people that we know.
Social media makes us more predisposed to buy things that are trendy or to follow the hype. This is how counterfeit products become so attractive to online shoppers because they satisfy that craving for novelty or enable us to keep up with the Joneses online, but there’s little monetary investment required compared to buying original products.
3. Bargain Hunting
A lot of people are on the lookout for the best deals they can find online. And true enough, the best deals can be found online. From consumer goods, personal care items, to retail brands, whatever you used to spend hours looking for in shopping centers can now be easily searched in online marketplaces for only a few minutes. And the best thing is, you are likely able to buy just about anything within a minimal budget.
Some people who buy things online for a cheaper price are not concerned whether the product is genuine or not. They’re just as happy with generic items or lesser-known brands because they’re truly more concerned about their budget and are finding ways to be more practical.
A lot of consumers can still be educated about the pros and cons of buying original products versus counterfeits because chances are, this is not always on top of their minds when they’re shopping for an item with a limited budget.
4. Seeking Novelty
When people want to experiment with new toys or gadgets out of curiosity but are not committed to investing a lot of money for a particular item and are expecting items to be damaged eventually, they may opt to buy counterfeit products instead.
Sometimes, an individual is simply more concerned about being able to try something new or own a trendy item for the novelty of it. They might have a disposable mindset towards buying an item because they do not appreciate its use or importance in the long-term anyway. If this is the case, they’ll want to invest as little money and may not always be keen on buying authentic products that could be more expensive.
Why Brands Need to Be on Their Guard
Whether people are motivated by practicality, social pressure, a shrewd mindset (that wants to beat the system), or are hungry for novelty, these are identified gaps between big brands/businesses and the evolving demands of consumers.
Within these gaps, counterfeits have been able to fill a need, and continue to thrive as advanced technology continues to make it easier for them to do business at a near-zero risk. Even if counterfeiting and piracy will always be illegal, the trade has a dramatic potential for growth.
Brands are called to stay on their guard and avail of every possible means to secure their businesses from these threats. There are various ways to protect our brands from various attacks but one of the main concerns often has to do with the safe delivery of our products to our customers.
Packtica offers high-technology brand protection solutions for every type of business. Your business’ security is our business. Let’s work together for a great solution.
Protect your brand today by securing your packaging at every step! Call us at +632-8842-0430 or email your concerns to sales@packtica.com.ph.
