How Luxury Brands Should Deal With Counterfeit Products
Counterfeit products have always been a problem for luxury brands. However, as technology advances, it is becoming increasingly difficult to combat counterfeiters. Therefore, brands need to think about how they can implement new strategies to deal with this issue in the future.
Here are the key areas luxury brands should focus on when trying to combat counterfeiters:
Using Anti-Counterfeiting Software
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Anti-counterfeiting software can help brands identify and track counterfeit products. It can be instrumental in helping companies determine if their products are being copied. It also helps them take legal action against fraudsters. The software lets brands identify and track stolen goods sold multiple times before authorities discover them.
Anti-counterfeiting tools are the need of the hour for every business. It is the reason why the global anti-counterfeiting tools market has grown manifold to $118 billion in 2021 and is expected to reach $342 billion by 2030.
StegVision offers one such software that helps you prevent counterfeits from entering the supply chain. It’s built on years of research and development to identify products as genuine or fake.
The key features of the StegVision software include the following:
- Stegfi encoding that makes each of your products unique
- Access to existing vendors
- Can be used globally
- Provides real-time reporting
- Keeps track of proper consumer engagement
Build Awareness About Counterfeit Products
There are several ways that luxury brands can combat the problem of counterfeit products. First, they should use anti-counterfeiting software to ensure that the forger isn’t reproducing their products.
Second, they should spread awareness about the issue via social media and other online platforms. Nearly 4.26 billion people used social media in 2021, and the numbers will reach almost 6 billion by 2027. It is one of the most convenient methods of spreading awareness to many customers across the continents.
Finally, luxury brands can use their websites to warn consumers about counterfeits. Also, they can use other digital channels to find where fake versions of their products are being sold online.
Authentic Branding Is the Key
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The most important aspect of a luxury brand is its identity. Luxury brands have a certain lifestyle attached to them, which makes them stand out from the crowd. The customer can imagine how your product could fit into their lifestyle as soon as they see your logo.
Today, luxury brands are targeting people between the ages of 25 to 44. According to a survey, 64% of the overall luxury brand consumers belong to the above age group. However, you should not underestimate the purchasing power of the 16 to 24 group (generation Z).
Authentic branding is the best way to protect your product from counterfeiting. By creating a unique design, color pattern, or logo for your product, you can create a brand that is instantly recognizable by consumers. Counterfeiters rely on being able to copy the appearance of a product to sell their fake products.
If you can protect your brand and make it difficult for counterfeiters to copy your product, you will be able to protect your market share and profits from fakes.
You can also use authentic branding in conjunction with other anti-counterfeiting methods, such as holograms and serial numbers. It can help you control the distribution of your products and ensure that they stay in your hands.
Quality and Differentiation
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The luxury industry is known for its quality and differentiation. It’s a big part of the reason why consumers buy luxury goods in the first place.
Quality is important because it’s one of the ways that you can differentiate yourself from your competitors. If you have a product that is known for being of high quality, then people will be more likely to buy it. It’s because they know it will last longer than a cheaper product.
Product differentiation is when companies provide their customers with something that no other company can. An exclusive way to identify their products and protect them from being imitated. This can be done through branding and packaging or by providing some security seal or physical feature that makes it harder for counterfeiters to copy your product.
Focus On Customer Service and Engagement
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Customer service is a great way to differentiate your brand and build loyalty, trust, and differentiation. For luxury brands, customer service should be the best. These companies have a lot of resources available to them and can afford to hire the best people. Therefore, they must ensure that every customer interaction is positive and memorable.
They must understand what makes their customers happy, so they can anticipate their needs before asking for them. The more satisfied customers are with your products or services, the more likely they will buy from you again in the future.
Companies Should Develop a Strategy to Deal With Counterfeiters
Fraudsters are a real threat to businesses, especially luxury brands. These manufacturers sell their products at a lower price, which damages their reputation by association. The best way to deal with counterfeiters is by developing a strategy that helps you distinguish your product from their fake ones in the market.
To develop this strategy, you should ask yourself, what makes my product unique? What makes it stand out from other companies’ products? In addition, examine all aspects of your production process and understand how counterfeiters could take advantage of them when creating fakes.
Luxury brands should act fast to tackle counterfeit products. They can start by creating more transparency between factories and suppliers. They must also improve their supply chain management. Contact StegVision now for more details and benefit from our years of experience in this field.