Counterfeits in Asia

27 July 2018

Counterfeit goods trading is on the rise across Asia. The two articles we chose focus on businesses that are involved in manufacturing and distributing counterfeit goods in China and Japan. Both articles offer strategies for luxury and designer brand companies to reduce the negative outcomes of this activity.

Eight ways brands can fight counterfeits in China

China has a rapidly growing problem with counterfeit luxury goods, with Hong Kong and China accounting for 86% of fake products globally. However, a few factors make it difficult to shut down counterfeit companies. These factors include the fact that many domestic consumers buy fake goods deliberately for a cheaper price; the difficulties people have in recognising the differences between fake and real products; and counterfeit manufacturers and distributors remaining under the radar. Lack of strict laws also means lenient punishment when they do get caught. However, there are a number of steps companies can use to help protect their luxury or designer brands. These include:

  • Registering the trademark in China to protect intellectual property
  • Investing in a good lawyer
  • Creating their own official web store that is compatible with Chinese online payment tools
  • Partnering with e-commerce firms and the government to help identify counterfeit businesses
  • Using strong anti-counterfeit technologies
  • Updating products regularly and quickly

Read the full article on the Harvard Business Review website.  

Toymakers in Japan boost efforts to tackle counterfeits

Japanese toymakers are also battling counterfeit products coming from China. The domestic market for toys in Japan is shrinking due to a declining birth-rate, but overseas sales are growing and creating a higher demand for Japanese toy brands. Counterfeit businesses are increasingly using this demand to produce and distribute fake toys, damaging the brand image and reputation of authentic toymakers. Pirated products also create over ¥3 billion annual loss of revenue in China. Chinese counterfeit goods are usually exported to other markets, which increases potential damage to the original brand image. While Japanese toymakers have been working together with the Chinese government to bring down counterfeit manufacturers, new ones are appearing at a much faster rate. Businesses and governments must therefore work together to shut down counterfeit goods manufacturers.

Read the full article on the Japan Times website.

Other stories in this edition of Asia Echo: