Brand Counterfeiting Trends in India- Reasons, Repercussions and Remedies

Off late the Indian market has been bombarded with a plethora of goods that are counterfeit or fake in nature. This phenomenon however, is not sudden but in fact is a result of the imbalance between the growing demand for products, inadequate production capabilities and high competition. Another dimension that can be explored is the dawn of globalization and brand consciousness in India which has caused a widespread attraction towards brand possession. 

There are various push and pull factors responsible for the existence of the counterfeit industry globally and in India. The push factors would be the expansion of major international brands venturing into the Indian market and thus a demand for these goods is created. In addition, these products are usually highly priced leading to unaffordability on the part of the average Indian customer. The Pull factors would be the general feeling of a need to possess these highly priced articles but the inability to do so and the glamorous marketing and advertising of the said products. In light of these circumstances, the counterfeit industry poses as a lucrative alternative to the real thing and generally is not viewed to be wrong or illegal by the average customer as it is considered mutually beneficial. This trend however is a vicious cycle of demand and supply and the pillars of the thriving counterfeit Industry in India.

Product counterfeiting is a big business -- estimated to cost hundreds of billions of dollars each year. It impacts the economy in a variety of ways including consumers that believe they are buying authentic products, legitimate manufacturers that invest in safety and quality manufacturing processes, and retailers that want to provide safe, reliable products to their customers.Exposure to serious health and safety risks associated with counterfeit electrical products, pharmaceuticals, car parts, airplane parts, baby formula and over-the-counter medicines, etc.People that unknowingly purchase counterfeit products anticipating a bargain are actually paying an inflated price for an inferior product.

In order to counter the growing menace of IPR violations and Brand Counterfeiting a number of brand protection services in India have emerged. These agencies partner with IPR professionals and brands in order to ensure quality control and to curb the counterfeiting menace. One of the foremost leaders in the anti- counterfeit movement is Brands and Fakes. This agency works with its national network of agents who report any counterfeit product that they come across and report the said product following which Brands and fakes carries out an investigation and seeks to minimize or reverse the damage caused by duplicate brands. The Agency follows an incentive based program in order to motivate people to join the fight against counterfeit products. Other IPR investigators in India worth mentioning are TACT India, SGS India, and GCS Management India. 

Even though there a  number of agencies that work towards the eradication of the counterfeit product culture, their job is incomplete as long as people continue to ignore the associated health and other hazards of using fake products knowingly or unknowingly. Mass awareness generation and a total blanket ban on fake commodities is the need of the hour in order to secure a brighter tomorrow.