Managing the risks of counterfeit products

November 2007

The cult of celebrity is helping to fuel a luxury goods industry worth £1.87 billion over the next two years. Conversely, the desire by consumers to own the same clothes and accessories as their celebrity icons is also accelerating an enormous growth in cheaper, counterfeit goods that is costing the luxury goods industry millions in lost sales and damage to their brands. The questions facing luxury goods manufacturers are clear: what is the extent of the risks presented by counterfeit goods and what can be done to mitigate against them?

The report analyses the changing consumer buying behaviour that we believe is one of the main drivers behind continued investment in luxury goods and counterfeits. We explain why this behaviour is both an opportunity and a threat, and outline the steps that luxury goods manufacturers need to take in order to reduce the damage that counterfeit products is having, and will continue to have, on their businesses.

The research provides us with a tremendous opportunity to have discussions with clients to help them optimise their revenues, capitalise on and protect their intellectual property, and successfully manage risk. The PricewaterhouseCoopers' licensing management team offer licensing enforcement programmes, licensing consulting services as well as dispute resolution and arbitration. Please make use of this report by taking advantage of client meetings and discussions to share the breadth of what we do, and to encourage your clients to meet up with our experts.