Revenue Sudden Decline - The Threat From Counterfeit Goods?

30 August, 2024 by
Revenue Sudden Decline - The Threat From Counterfeit Goods?
Lameco JSC

You are running a successful business with stable revenue, but one day it suddenly plummets without any clear reason. Have you ever wondered: Is my brand being counterfeited?

The alarming reality today is that the issue of counterfeit goods is becoming increasingly prevalent and sophisticated. From clothing, footwear, cosmetics to household items and dietary supplements... all can become "easy prey" for counterfeiters. This not only causes economic damage to genuine businesses but also seriously affects the rights and health of consumers.

Negative Impacts When A Brand Is Counterfeited

  • Revenue Decline: When counterfeit goods flood the market, consumers easily purchase low-quality products at cheaper prices. This significantly affects the revenue of businesses, especially when customers lose trust and turn away from the brand.
  • Reputation Damage: Counterfeit goods often have poor quality and safety standards. When customers use these products, they have negative experiences and form low opinions about the brand. The hard-earned reputation can be destroyed in a short period.
  • Increased Brand Protection Costs: Businesses will have to spend a substantial budget on brand protection measures such as market control, removing counterfeit products and conducting communication campaigns to affirm their reputation.

How To Identify And Prevent Risks?

To protect the brand and revenue, businesses need to proactively identify and prevent risks from counterfeit goods:

  • Monitor the Market: Regularly update market information and grasp the activities of counterfeiters.
  • Register Brand Protection: This is crucial to assert intellectual property rights and provide a legal basis to handle violations.
  • Enhance Brand Recognition: Build a consistent, impressive and memorable brand image to help consumers distinguish from counterfeit goods.
  • Use Anti-Counterfeit Technology: Apply anti-counterfeit labels, QR codes, Blockchain technology... to help customers easily check the origin of products.
  • Collaborate with Authorities: Actively provide information and collaborate with authorities to investigate and handle counterfeit production and trading activities.

Lameco - Your Partner In Brand Protection And Development

Understanding the difficulties businesses face in brand protection, Lameco provides comprehensive solutions to help businesses confidently operate and sustainably develop. Contact us now for consultation and support.

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Lameco - Your Partner In Brand Protection And Development!

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