In a recent article, the Harvard Business Review took a look at how the luxury industry has been waging a losing war against counterfeiters. The authors note that, despite significant efforts to battle the producers of fake product, the total trade in fakes is estimated at around $4.5 trillion, and fake luxury merchandise accounts for 60% to 70% of that amount. They looked to four panels of experts to answer a simple question, "What should luxury goods companies be doing instead?"
One of the answers the authors found was that brands need to focus less on pursuing counterfeiters, and more on better communication with product end-users. They wrote, "It’s also high time for many luxury goods companies to reboot their assumptions about customers, because their customers are evolving. Increasingly the new rich of today are Millennials, and their ethics and tastes are rather different from those of their parents. There is shift in emphasis to experience, sustainability, and sharing from products, consumption, and exclusivity."
To facilitate this type of communication brands need to better connect with their customers. Technology solutions such as solo*, which close the gap between producer creators and end users, are ideally suited to assist in such efforts. In addition to its other inherent anti-counterfeiting capabilities, solo* can help companies in their efforts to better inform consumers about their business ethics and the quality of their products.
To read the Harvard Business Review article on this, follow this link: https://hbr.org/2019/05/how-luxury-brands-can-beat-counterfeiters