Counterfeiting has emerged as a flourishing industry, especially in Asia. Large-scale
counterfeiting harms brand owners by reducing sales and diluting prestige (Raustiala and
Sprigman, 2006), thereby eroding brand value and reducing profits. Moreover, the
counterfeit industry also undermines the nation’s economy by circumventing various
duties and taxes.
In recent times, people’s attitude towards investing and spending money are changing,
and so is their fashion sense. Consumer demand is also increasing due to the pursuit of
status goods and the desire for being in tune with fashions and fads (Eisend and Schuchert,
2006). While the financially disadvantaged consumers tend to buy cheaper products, such
as private labels, non-branded or even fake goods, the rich consumers are investing more
on products at the higher end of the price scale.
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