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The aim of this chapter is to discuss the growing trends in the trade in counterfeit products, in the context of the crisis caused by the COVID-19 pandemic. Counterfeiting and sale of counterfeit products is a global economic problem. It covers different sectors of the economy and is present in almost all countries of the world. This is the subject of increased interest, not only of institutions and organisations working on solving this global problem, but also of the scientific and professional community, which seeks to point out different domains of this problem, as well as measures to eliminate its effects. The increased share of trade in counterfeit products in international trade is worrying. New problems arise with the entry of the world economy into the crisis caused by the COVID-19 pandemic. In such circumstances, or in the so-called new normality or reality, there have been some changes in the field of trade in counterfeit products. So we can talk about the ‘old’ topic in the ‘new’ reality. Thus, numerous questions have been opened about the trends in the trade in counterfeit products. The obtained results of the desk research in this chapter make an attempt to give an answer to these questions. Thus, in addition to the discussion of counterfeiting and counterfeit products as a global economic problem and crisis caused by the COVID-19 pandemic, the subject of a special discussion will be trends in trade in counterfeit products, both in the world and in the Republic of Serbia, while pointing to the measures and instruments that can be applied in order to prevent and eliminate the negative effects of this phenomenon.

Global counterfeiting is escalating despite resistance by many parties. We identify three groups of stakeholders who have vested interests in either resisting or promoting counterfeiting. Among resistors to counterfeiting are national governments, international policymakers, and corporate intellectual property owners; among promoters are the counterfeiters themselves and many consumers. We argue that current supply‐side resistance approaches alone are inadequate; attention is also needed to resisting consumer promoters on the demand‐side of the market. Drawing from a review of the literature, we develop a new analytical framework which depicts complex interfaces between IP owners and consumers. A second framework presents actionable marketing strategies targeted to different consumer segments.

Pharmaceutical marketing, brand protection.

It could be used with the pharmaceutical marketing students and MBA students for analysing counterfeit medicines' menace in developing countries and positioning of a disruptive technology. The case could be used for marketing consultants, Brand managers and executive development programmes to explore issues such as protecting brands through technology, pharmaceutical packaging marketing, competitiveness of counterfeit drugs, global harmonisation.

Against the backdrop of rising menace of counterfeit drugs in developing countries, the case talks in particular about an innovative pharmaceutical packaging company. The company has developed a unique security technology called non-ClonableID™ which can enable products to be authenticated throughout the supply chain, thus protecting brands and preventing misuse. Despite a promising technology, it poses challenges regarding its adoption and commercial success.

Counterfeiting as an inevitable result of Globalization has become a global nuisance and has to be dealt at global level. Brand protection could be one of the lowest cost tools for pharmaceutical companies to restore public confidence in their products and themselves. While all methods for anti-counterfeiting are known to have short lives the menace still must be dealt with. For this, companies need to deploy anti-counterfeiting strategies that set up various layers of security.

Teaching note.

This study explores consumers' motivations to purchase luxury and counterfeit products using an international sample. In addition, it also examines the moderating role of interpersonal influence on this process. This study seeks to examine if the consumers who demand the highest quality express a preference for luxury goods over counterfeit goods.

Survey research was employed to subjects from the USA, India, China and Russia. Responses from US and India consumers were collected using online software, whereas responses from China and Russia were collected with the help of a local market research firm.

The findings of the study indicate that consumers tend to show similar reactions based on the luxury and counterfeit consumption process examined here. In terms of interpersonal influence as a moderator, however, the study found it significantly impacts status seekers' attitude toward luxury and how a perfectionist shopper perceives counterfeit consumption.

This study is one of the first in the literature to empirically address both luxury and counterfeit consumption. Further it considers consumers from multiple countries with high levels of luxury good purchases.

The purpose of this paper is to analyze how companies develop mitigation capabilities in their supply chains in order to reduce the negative impacts of counterfeiting.

Five cases with two types of supply chain are analyzed: B2B (clothing, footwear and toys) and B2C (automotive). Data gathering was based on interviews, while secondary data were obtained directly from trade associations.

Companies presented different levels of proactivity for counterfeiting resilience. Companies with a lower level of appetite for risk are more proactive and have a broad number of mitigation capabilities. These companies develop intelligence that is required for combating counterfeiting and the capabilities needed for addressing its ex ante and ex post phases.

The research examines a complex and controversial subject about which there is limited information. The case studies are limited to Brazilian companies and the local subsidiaries of foreign companies. Therefore, the specific context may influence the study findings and reduce their generalizability.

Mitigation capabilities enable companies to minimize the negative impact of counterfeiting and make companies more resilient to counterfeiting activities. The findings indicate that when managers allocate resources in earlier phases of counterfeiting, losses are lower.

This study shows the development process of mitigation capabilities in the ex ante and post-disruption phases of counterfeiting.

The paper deals with counterfeiting, its problems and its effects, analyzing the case of Italy in particular. The purpose of this paper is to underline the scale of the phenomenon and its economic and social impact on the fashion industry and civil society, concentrating on the involvement of organized crime. Lastly, it offers some possible counter-strategies for detecting continual violations and ensuring it spreads no further.

The author uses a multidisciplinary approach to the issue of counterfeiting in the fashion industry; beginning with an economic analysis of the phenomenon and examines its social implications, going deeper into the role of the consumer from a sociological point of view and, from a forensic one, the role of organized crime.

Three things emerge from the analysis of the main features of the connection between counterfeiting, the fashion industry and the consequences for civil society: the size of the phenomenon, the low level of awareness in government and civil society about the seriousness of the problem, and the link with organized crime (and resulting social implications).

The main social implications of this work concern first the role of consumers, who may vary greatly in the degree of awareness they exercise when buying, and second the close connections between organized crime and the counterfeiting supply chain.

Counterfeiting has become a global business. In Italy it has reached huge dimensions and has developed some peculiar aspects, particularly in the fashion industry: this paper brings out these economic, social and criminal aspects. In order to effectively tackle this problem, therefore, it is essential to work out both supply side and demand-side strategies and to strengthen co-operation across national borders, taking steps to control the whole supply chain as well as working to educate consumers.

The dynamic and evolving character of the fashion market, affected by globalisation and technology development, has resulted in complex supply chains. In order to keep costs down, fashion companies have relocated their production facilities to developing countries. At the same time, easing trade restrictions and reducing tariffs have encouraged fashion companies to offer their products all around the world. Accordingly, fashion supply chains have become geographically dispersed, with an increasing number of members, and decreasing traceability and visibility of the chains. As a consequence of that, they face uncertainties and some risks, from stock-outs, late deliveries, over-stocks, to counterfeits etc. This chapter sheds light on counterfeiting as the making of a product that so closely imitates the appearance of the product of another as to mislead consumers that the product is an original. Counterfeiting presents the biggest threat to the fashion industry due to its growing popularity among consumers who were not aware of buying fakes or knowingly bought fake fashion items. This chapter aims to examine the pros and cons of purchasing counterfeit fashion products (CFPs) by Gen Y and Z consumers, as they are more likely to purchase them. The results of the study on a sample of young Croatian consumers show that they prefer CFPs due to functional benefits of price and accessibility, and overestimated originals. The main reasons for young consumers not purchasing counterfeits are the perception of having poor quality relative compared to authentic ones as well as the ethical and legal dilemmas involved.

The study explores and builds theories in Customer Perceived Values (CPVs) that drive counterfeit buying intention, using a Grounded Theory Approach (GTA) in an emerging market, India.

Counterfeit studies have either resorted to a survey approach or modelling approach in investigating various aspects and dimensions. This study, among a few, attempted a GTA in building theory on CPVs. Based on the observations and recorded responses that emerged through several Focus Group Discussions (FGDs); conducted in two metropolitan cities (India), newer insights into this illicit phenomenon of “Counterfeiting” were derived.

Adding to the counterfeit literature, the study presents a comprehensive view of the CPVs. Findings reveal economic, socio-normative, pleasure-based, euphemistic, acquisition-centrality, self-regulating, situational and sustainable consumption values that influence counterfeit attitudes and in turn impact counterfeit buying intentions. Although Economic Values (ECV) have been the primary motivation for counterfeit purchase, complex and newer values that emerged through this research study bears significance.

As a single point of reference, this study will provide impetus to scholars and academicians in expanding the counterfeit research domain. While aiding policymakers and marketers in further understanding this illicit practice, it will also guide brand managers in strategizing their offerings and reaching out to the masses with strong brand aesthetic values.

Based on a systematic literature review using the 4 Ws framework, this study is one of the few attempts that has adopted a GTA to explore and develop theories on CPVs in counterfeit research.

The purpose of this paper is to examine customer attitudes toward purchasing counterfeit luxury products (ATPCLP) in two cities in two different countries (Saudi Arabia and Malaysia) by testing the relationships between the various reasons for purchasing those products: social status insecurity, status consumption and value consciousness.

Questionnaires were distributed conveniently to urban customers in Kuala Lumpur, Malaysia and Jeddah, Saudi Arabia. Altogether 658 useable questionnaires were collected and analyzed using descriptive statistics, general linear model of univariate analysis of variance and structural equation modeling.

Quality, price, popularity and status signaling represent the main motivating factors for their brand choices of counterfeit luxury products among the two country groups of customers. As expected, customers' social status insecurity influences their ATPCLP, but not their status consumption. However, status consumption does positively moderates the relationship of their social status insecurity and their ATPCLP. Furthermore, customers' value consciousness influences their ATPCLP and moderates the relationship between status consumption and ATPCLP. The impact of status consumption on ATPCLP depends on the importance one places on the value of the products. However, the authors found no differences in social status insecurity, status consumption and value consciousness, on their ATPCLP among the customers. Some implications and limitations of the results are discussed.

The use of convenience sampling and mainly college students (in Saudi Arabia) as respondents represent the main limitations of this study.

The practical implication of this study is to discourage the purchasing of counterfeit luxury products in their respective country Malaysian marketers need to stress that their genuine products are of top quality while Saudi marketers need to stress that their genuine products are of well-known brands that are sourced from well-known countries of origin. Besides, Malaysian marketers need to offer genuine products that are not overly priced or ones that indicate value-for-money while Saudi marketers need to convey the message that their genuine products could help enhance or uplift their customers' social status. In this study, the authors did not find any support for differences in ATPCLP between the two rather different Muslim-majority countries. This could be due to the fact that the majority of the respondents were females in their mid-20s and that both countries have a growing number of young customer base, which makes them particularly attractive target customers for branded/luxury products and, at the same time, easy preys to luxury products counterfeiters. This implies that there are still more opportunities for academics to study the topic or related topics in the future.

As far as the authors know, no one has undertaken a comparative study involving two very different Islamic majority countries (more conservative mono-cultural and mono-ethnicity Saudi Arabia versus less conservative multicultural and multi-ethnicity Malaysia) before.

The purpose of this study is to investigate impacts of counterfeit branded products (CBP) ownership on branded products (BP) and to explore determinants of CBP purchase intention of both CBP owners and CBP non‐owners.

Following four focus group discussions, a quantitative survey of 430 adults in Glasgow, UK was conducted measuring consumers' brand perceptions of CBP and BP, CBP non‐deceptive ownership, and CBP purchase intention.

Consumers were found to have more favourable perceptions of BP than CBP, with exceptions of financial risk and security concerns. Significant perception differences concerning CBP were identified between CBP owners and non‐owners. In contrast, CBP ownership had no significant effect on consumers' evaluations of BP. Several perception dimensions appeared to be significantly influential on CBP behavioural intention, with brand personality playing the dominant role. Evidence of an interaction effect of CBP ownership with consumers' perceptions of CBP on CBP purchase intention did not exist.

This study is one of the few which have examined the impact of CBP on its counterpart BP from both brand and product perspectives. Insights into how CBP as a brand and also a product are perceived differently to BP, and how CBP ownership alter consumers' perceptions of CBP/BP and thereafter CBP purchase intention, contribute to the literature in counterfeiting study and provide a platform for more conceptual and theoretical research on the effects of symbolic and expressive value on cognitive behaviour in counterfeits related research settings.