Counterfeiting and brand imitation are growing problems for the fashion industry. Despite evidence that consumers are becoming increasingly ethically minded, the pressure on disposable incomes has made cheap versions of luxury items too tempting for many people.
Research conducted by Vestiaire Collective discovered that 22% of shoppers have knowingly purchased 'knock-off' fashion goods instead of the genuine article, with fake designer handbags the most commonly bought item.
The problem has been exacerbated by access to cheap labour and the development of mass manufacturing techniques in the Far East, coupled with an explosion in demand for luxury items in countries like China over the last decade. Clothes by many luxury fashion houses are now produced in the same factories as mass market items. Although this has increased profit margins for high-end retailers, it has also placed their designs within easy reach of counterfeiters and copycats.
Brand protection company Mark Monitor estimates that the annual cost of counterfeiting stands at £86 billion across all industries. There is no doubt that it is extremely damaging for clothing retailers, and not just those at the top end of the luxury scale. But can companies combat counterfeiting through the way they manage their supply chains?