FAKE IT ‘TIL YOU MAKE IT
Counterfeit goods continue to be a problem in the UK, creating real losses for
real brands. Manufacturers, therefore, have to remain vigilant against the fakers
BY AMY BEST
Everyone has seen fake bags, shoes and
make-up at for sale at markets across
the country every Saturday, and when
big retailers start selling them globally
online, you must ask whether a brand’s
good name is at risk and, subsequently,
what losses may occur.
The OECD’s Trade in Counterfeit Products in
the UK Economy report from 2013 shows just this,
with leather being the biggest counterfeit risk,
followed by watches, footwear and electrical
machinery and equipment.
The economy suff ers
These losses resulted in a cut of an estimated
20,000 manufacturing jobs in the UK due to a loss
of business. Piotr Stryszowski, senior economist
at the OECD, expands: “This represents 1.15% of
all employees in the UK,” he says. “In terms of
taxes, counterfeit trade meant the UK government
lost almost £3.8 billion in tax revenue, of which
£2.4 billion were due to counterfeit imports to the
UK, and £1.4 billion due to illicit trade in goods
that infringe the intellectual property of UK
residents. This represents around 1% of the taxes
the UK government should have collected on
corporate profi ts, personal incomes, consumption
(VAT) and social security contributions.”
It seems that the UK is an
easy target for this problem,
as Stryszowski says that “UK
brands are very attractive
for counterfeiters”. The UK
is the seventh most aff ected
country by counterfeiting in
the world, with 3% of total
UK manufacturing sales being
comprised of fake goods. “For
some product categories, like
toys, clothing and footwear,
this share exceeds 10%,” says
Stryszowski. “Of course, this
puts the goodwill of UK fi rms
at risk. This will have long-term
eff ects, and the exact magnitude
of this risk is yet to be seen.”
A similar problem is seen
more specifi cally in food
manufacturing when, in 2017, a
joint operation between Europol
and INTERPOL seized 9,800
tonnes of counterfeit food, 26.4
million litres of counterfeit
beverages and 13 million other
food items worldwide.
Joanna Mooberry (pictured,
right), spokesperson for
Mettler-Toledo, a measurement
solution provider, echoes how
attractive a target the UK is, as
many people are using online
retailers to purchase what
cannot be sourced anywhere
else. “Consumers want access
to the ingredients featured on
television, but do not know
where to purchase them
locally – so they use online
resources to fi nd the items
they want,” she says. “One
example is mail-order meat,
with margins of 40% being
achieved by legitimate suppliers,
which makes counterfeiting an
increasingly attractive fi nancial
proposition for criminals.”
A growing problem...
As counterfeiting has few
negatives and many benefi ts,
some argue that it becomes a
rational choice. It continues
to grow because it may be
the easiest way for a person
Counterfeit
goods led to the
loss of 20,000
jobs in UK
manufacturing
in 2013
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