Influencers Drive Counterfeit Sales, Per UKIPO Survey

“Purchases are often more than simple transactions between buyers and suppliers,” with consumption being a social experience in many cases, and the influence of others playing a role in what we buy. The same applies to the consumption and sale of counterfeit goods, according to latest report from the UK Intellectual Property Office, which surveyed 1,000 female consumers (“as social media support for counterfeit products is dominated by female influencers and a female audience,” the study population was limited to female consumers), to gauge the state of the market for counterfeit goods and determine the extent to which media influencers social media facilitate the purchase of these goods.

The main finding of the UK Intellectual Property Office (“UKIPO”) with respect to its survey was that 17 per cent of participants (70 per cent of whom were aged between 16 and 33) reported that they had knowingly purchased counterfeit goods in the past. years – and 13.3 percent revealed that their buying behavior regarding counterfeit products had, in fact, been influenced by social media endorsements. In other words, 13.3 percent of respondents reported that they had “purchased counterfeit goods either intentionally or unintentionally following the endorsement of a social media influencer,” which UKIPO said “clearly demonstrates” that influencers are an important force in supporting counterfeit products and an “important channel.” to the market for counterfeit suppliers on the other side of the world.”

In line with previously reported figures, UKIPO found that fashion and related accessories are the main drivers of consumption of counterfeit goods, with this category of goods being “highly attractive” to younger consumers (i.e., those in the 16-33 age group), with 1 out of 5 (20 percent) of survey participants admitted to buying counterfeit clothing or accessories in the previous year compared to 4 percent of older consumers.” (UKIPO notes that it defines counterfeit goods to participants as “goods that look identical to the original product with or without the official brand/logo, but are not made by that brand and may be of lower quality, for example, a handbag identical in design to “Chanel” with or without the Chanel logo.”)

In addition to clothing and fashion accessories, which are the most popular product categories in terms of consumption of counterfeit goods, according to UKIPO, counterfeit jewelry and watches, as well as beauty products are also listed as the most frequently purchased.

Another interesting thing about consumer mindsets regarding counterfeit goods from UKIPO’s findings is that 18 percent of survey respondents “believe counterfeit goods do not harm business and jobs,” 22 percent “believe counterfeits are not a health and safety threat,” and finally, 33 percent who more (or a third of survey participants) revealed that the trade in counterfeit goods was actually “the fault of the manufacturers due to the overpriced high-branded products”.

Rise of “Dupes,” as Platform Eye Luxury

The timing of the UKIPO survey seems appropriate given the increasing number of “scams” ​​both in terms of Google searches and on social media sites, including Instagram and TikTok, and the influencers who have built a sizeable following, in most cases, for their posts on this topic. As TFL reported last summer, while recent Google Trends data shows that searches for the word “replica,” for example, continue to decline overall, searches for “scams” ​​have increased in recent years.

“Browsing through YouTube reveals countless videos presented by young, mainly female content creators promoting fake clothes, accessories and beauty products to their followers,” said the UK IP agency, pointing to one UK influencer with 4.4 million subscribers. on his YouTube channel, which “uploaded a video promoting counterfeit goods in May 2021 entitled, ‘I Bought Fake Designer Bags on Wish.’” The video – featuring fake Louis Vuitton, Jacquemus, Dior, and Balenciaga bags – has been viewed 221,326 time.

At the same time, brands and marketplace sites come together to send a public message to influencers (and the public at large) regarding their role in supporting counterfeit goods. Amazon, for example, filed a counterfeit-centric lawsuit in November 2020, accusing influencers Kelly Fitzpatrick and Sabrina Kelly-Krejci of “engaging in a sophisticated false advertising campaign” in connection with which they “conspired” with sellers on Amazon marketplaces to circumvent Amazon’s anti-counterfeit protections. by promoting fake luxury goods – from Gucci belts to Dior handbags – on Instagram, Facebook, TikTok and their own website. The case was settled in September, with the terms of the largely confidential agreement imposing a ban on Fitzpatrick and Kelly-Krejci from “marketing, advertising, linking to, promoting or selling any product on Amazon,” and in the event of monetary damages paid by the parties. defendants, Amazon disclosed that they would donate the amount to various non-profit organizations, including the anti-counterfeiting initiative of the International Trademark Association.

Not to be outdone, Facebook, Inc. (now Meta) partnered with Gucci in April 2021 to file a lawsuit against one defendant – a woman named Natalia Kokhtenko – for operating an “international online business, trade in illegal counterfeit goods,” which had seen her use “Facebook and Instagram. [platforms] to promote sales [luxury brand] counterfeit goods”, such as Gucci handbags, shoes, clothing and accessories, and violate trademark laws and “Facebook and Instagram terms and policies” in the process. The case is still ongoing in the US District Court for the Northern District of California.

Given the very limited scope of both cases (there are far more than marketplace sellers and influencers peddling counterfeit goods on Instagram and Amazon), the cases are almost certainly part of a larger trust-building exercise aimed at luring consumers and brands to these platforms, and allows them to be seen as legitimate fashion sources. In the same vein as Amazon, which has not been silent about its ambitions in the areas of fashion and luxury, Reuters reported last year that “groups like Facebook, Inc. want to make a bigger push into the luxury goods and ‘social trade’ market. ,’ but to do so they need to demonstrate that their platform is not a conduit for counterfeiters and is safe for brands, some of whom are reluctant to sell their products through third-party players.” Targeting fake peddler influencers is one part of that effort.