Luxury Fashion

Faux goods is the biggest threat to global luxury brands – robbing brand owners of their designs, profits and hard-earned reputation of prestige.

Losses caused by counterfeit goods in the luxury fashion industry is different from the losses that impact other industries - each sale to a customer by a counterfeiter may not constitute a direct loss for the luxury brand as there is a high chance the customer would have never considered purchasing the genuine product in the first place.

Why Counterfeits Hurt Luxury Sales

Counterfeiters turn luxury offerings into mass market products by selling poor quality knock-offs at low prices. For an industry that hinges on originality, scarcity and quality for success, the mass selling of low quality products dilutes the brand’s exclusivity and reputation.

Illegal producers do not abide by the quality and safety standards of the industry, thus increasing the risk for personal injury which could lead to unfair liability and negative publicity that tarnishes a brand’s reputation.

As such, while sales made by counterfeiters may not always be direct losses for the infringed brand, it may lead potential customers to turn away from the brand’s genuine products altogether losing the loyalty and sales of these ‘would be’ customers.

Why Luxury Brands Have To Be Proactive To Stop Counterfeiters

High traffic online marketplaces, online stores and social media networks allow counterfeiters to market and sell directly to a global pool of customers. While most of these online channels have put in place an abuse reporting system for customers to blow the whistle on accounts selling fake products, its effectiveness in stopping counterfeiters is low for one simple reason - the popularity of counterfeit goods is fuelled by customers that want high-end brands without the high-end price tags. When a shopper can purchase designer products at a fraction of the price, the motivation to report an illegal retailer is little to none. Thus, it is crucial for luxury brands to take matters into their own hands and adopt a proactive approach towards product authentication and anti-counterfeit prevention.

Reyal is a brand protection and product authentication solution that blends elegantly with the designs of luxury apparel & footwear. Compatible with a wide variety of fashion materials including threads and fabric, as well as packaging materials such as paper, plastic, aluminium, stickers and labels, Reyal is versatile and offers brand protection across multiple product categories, ensuring the authenticity of your products are unquestionable.