Countering Counterfeit Trade

Illicit Market Insights, Best-Practice Strategies, and Management Toolbox

By: Thorsten Staake, Elgar Fleisch

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Hardcover | 30 May 2008

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Hardcover
252 Pages

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23.5 x 16.51 x 1.91

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Trade in counterfeit goods has developed into a substantial threat to many industries. The problem is no longer confined to prestigious, easy-to-manufacture products which consumers all too often knowingly purchase as cheap imitations. Today counterfeiting affects pharmaceuticals, mechanical spare parts, fast-moving consumer goods and electronic components as well as fashion accessories, clo- ing, cigarettes, and digital media. Even within the different product categories counterfeit supply is extremely diverse. While some goods pose a severe risk to the health and safety of consumers, others have a decent level of quality and s- isfy the needs of most of their users; manufacturing sites exist where people work under almost inhuman conditions whereas other facilities resemble modern, highly automated plants; and counterfeit producers may act like small-time criminals, but may also manage their businesses like multinational companies. On the dema- side consumers sometimes invest considerable effort in searching for low-cost imitations or may become actively engaged in a company's anti-counterfeiting program. The implications for brand owners are as manifold as the market itself. Effects include losses of revenue due to substitution and constraints to product pricing, erosion of brand value when corresponding goods appear to become less exclusive or of lower quality, liability claims and product recalls if substandard imitations end up in products or on the shelves of licit companies, and increased competition resulting from learning effects among illicit actors who may eventually turn into licit manufacturers.

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Foreword	p. v
Methodology	p. ix
Acknowledgements	p. xi
Organization of the Book	p. xiii
Knowing the Enemy - The Mechanisms of Counterfeit Trade	p. 1
An Introduction to Counterfeit Markets	p. 3
The changing nature of counterfeit trade	p. 8
A global problem - Frequently discussed, little understood	p. 14
Counterfeiting is not parallel trade is not overproduction - Why a clear problem definition is needed	p. 16
Academic publications on counterfeit trade	p. 19
Understanding Counterfeit Supply	p. 23
Strategies and production settings of counterfeit producers	p. 23
Distribution channels and shipment strategies for illicit goods	p. 35
Exploring the counterfeiters' business case	p. 41
Research on counterfeit supply	p. 44
Counterfeit Demand and the Role of the Consumer	p. 47
Consumer behavior in counterfeit markets	p. 47
Developing brand- and product-specific consumer studies	p. 56
Research in counterfeit demand	p. 59
Countermeasures - Best Practices and Strategy Development	p. 67
Established Anti-counterfeiting Approaches - Best Practices	p. 69
State-of-the-art in anti-counterfeiting	p. 69
The characteristics of successful practices	p. 77
Research on managerial and legal countermeasures	p. 79
Implementing Anti-counterfeiting Measures	p. 85
Monitoring processes	p. 85
Reaction processes	p. 91
Preventive measures	p. 93
Organizational structure of anti-counterfeiting units	p. 97
Management Tools - Towards a Fact-based Managerial Approach	p. 101
Determining the Market Share of Counterfeit Articles	p. 103
A critique of existing statistics	p. 104
Macroeconomic calculations	p. 114
Microeconomic calculations	p. 121
Implications for Affected Enterprises	p. 125
Quantifying the loss of revenue	p. 125
A model to assess the impact on brand value	p. 133
Implications for quality costs, liability claims, and future competition	p. 141
Positive effects of counterfeit trade	p. 144
Research on the impact of counterfeit trade	p. 146
Product-protection Technologies	p. 149
Principles of Product Security Features	p. 151
Classification of protection technologies	p. 151
Attack scenarios and their implications	p. 155
Requirements for security features	p. 157
The Potential of RFID for Brand- and Product-protection	p. 161
An introduction to the Internet of Things	p. 162
Technical principles of RFID technology	p. 170
Solution concepts	p. 177
Application scenarios	p. 187
Managerial Guidelines and Conclusions	p. 197
Guidelines	p. 199
Concluding Remarks	p. 207
Appendix	p. 209
List of References	p. 211
List of Abbreviations	p. 225
Index	p. 227
About the Authors	p. 231
Table of Contents provided by Ingram. All Rights Reserved.

Countering Counterfeit Trade

Illicit Market Insights, Best-Practice Strategies, and Management Toolbox

At a Glance

Hardcover

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Defective items

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