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Pearl academy of Fashion

Submitted to Mr. Sumit Mandal


Research Methodology
In partial fulfilment of the requirements of the PG
Course- Fashion Merchandising (2009-11)
Submitted to: Mr. Sumit Mandal
Date of submission: April 30, 2010

Submitted by:
Heena Khanna (9017)
Sheenam Sukhija (9014)
Swati Julka (9009)
Sugandha Gupta (9007)

~2~
Acknowledgements
To complete a project of this magnitude requires a
network of support, and we are indebted to many
people and organizations. We would like to thank the
following people for their help and valuable inputs and
feedback:
Our teacher, Mr. Sumit Mandal for guiding us about the
practical and theoretical aspects of this subject.

~3~
Table of Contents
Title Page no.

Introduction 5 - 10

Literature Review and 11 - 20


Hypothesis

Sampling and Data Collection 21 – 23

Results, Analysis and 24 - 37


Discussions

Conclusion 30 - 40

~4~
Introduction

~5~
BRANDS:
A Brand is the image of the product in the market.

The psychological aspect, sometimes referred to as the brand image, is a


symbolism created within the minds of people and consists of all the information
and expectations associated with a product or service.

A brand that is aligned with a particular product of service has to embody certain
features and qualities that help in creating a unique identity. Hence, a brand is
one of the most important and integral parts of advertising, as it presents what the
owner is offering in the market. The process of creating and maintenance of a
brand is referred to as brand management.

Brand management should be planned and undertaken in a careful and cautious


manner, so as to make the product or service relevant to the target audience.
Brands often make use of ingenious and clever advertising campaigns, which prove
to be successful in convincing consumers to pay high prices for products whose
production costs are quite low. This concept makes use of manipulation of the
image of the product, so that the target customer sees what the marketer wants
him/her to see, rather than viewing it in a logical and sensible manner.

A brand which is widely known in the marketplace acquires brand recognition. One
goal in brand recognition is the identification of a brand without the name of the
company present. For example, Louis Vuitton can be easily identified by its
trademark monogram design, and Burberry is recognized by way of its traditional
tartan checked pattern.

Brand awareness refers to customers' ability to recall and recognize the brand
under different conditions and link to the brand name, logo, and jingles. It helps
the customers to understand to which product or service category the particular
brand belongs to and what products and services are sold under the brand name.

Global Brand

A global brand is one which is perceived to reflect the same set of values around
the world. Global brands transcend their origins and create strong, enduring
relationships with consumers across countries and cultures.

~6~
Examples of global brands are:

Louis Vuitton

Burberry

Prada

Ed Hardy

Benefits of Global Branding

In addition to taking advantage of the outstanding growth opportunities, the


following drives the increasing interest in taking brands global:

•economies of scale (production and distribution)

•lower marketing costs

•laying the groundwork for future extensions worldwide

•maintaining consistent brand imagery

•quicker identification and integration of innovations (discovered worldwide)

Local Brand

A brand that is sold and marketed (distributed and promoted) in a relatively small
and restricted geographical area. A local brand is a brand that can be found in only
one country or region. It may also be a brand that is developed for a specific
national market.

Brand name

The brand name is quite often used interchangeably within "brand", although it is
more correctly used to specifically denote written or spoken linguistic elements of
any product. In this context a "brand name" constitutes a type of trademark if the
brand name exclusively identifies the brand owner as the commercial source of
products or services. A brand owner may seek to protect rights in relation to a
brand name through trademark registration.

Brand identity

~7~
A product identity, or brand image are typically the attributes one associates with
a brand, how the brand owner wants the consumer to perceive the brand - and by
extension the branded company, organization, product or service. The brand
owner will seek to bridge the gap between the brand image and the brand
identity. Effective brand names build a connection between the brand
personalities as it is perceived by the target audience and the actual
product/service.

BRAND PIRACY:
Brand piracy is also named as fake products or knock-offs. Brand piracy is the act
of naming a product in a manner that it reflects to be exactly same as the original
brand.

Brand piracy is of 2 types:

 deceptive piracy

 non-deceptive piracy

Deceptive piracy means when consumer thinks that he/she is purchasing the
original and genuine branded product, which then turns out to be fake.

Non-deceptive piracy means when the customer recognizes that the product is
fake by the means of quality, purchase location, price or material and still
purchases the product.

China is one of the chief offenders in the production of counterfeit goods and is
known as counterfeit capital of the world. The customers of counterfeit high
fashion brands may see no logic in purchasing extremely expensive apparel or
accessories which would go out of fashion by next season. Instead, the customers
may choose to invest in a cheaper fake product which will last long to be replaced
by another fake product to be used in the next season.

WHY DID BRAND PIRACY COME INTO EXISTENCE?

The luxury designer brands have instant global recognition and the desire for these
brands has opened a market for brand piracy. This fact was supported by the
postmodern cultures where the consumers often exhibited their identity through
the consumption of their fashion accommodates. Prior to post modern fashion,
people were obliged to dress in accordance to their social identities. Weather the
consumers could afford to buy the garments of original brands or not but to
maintain their social symbol, they started purchasing fake products.

~8~
In 1998, the new-Zealand government suggested that why piracy and fake goods
will increase worldwide:

 Growing cost of development of more sophisticated software and other


products
 Reducing cost of replicating sophisticated products
 Globalization of brands and the desire of consumers to have those goods
 Continuing periodic breakdown of law and order in various regions through
political unrest and economic recession
 Unavailability of original brands in all parts of the country

According to a survey done by UK pollster Mori:

40% of the customers admit that they would knowingly buy fake products: if the
price and quality of a product were acceptable. (Among this 40%, 76% would buy
fake clothing and rest 24% would buy accessories like watches, perfumes and
electrical goods.)

Researcher’s Outcome:

Mehar Castelino, a fashion consultant did a research on brand piracy. The


brand studied by Mehar was LOUIS VUITTON. Mehar studied the brand and
came out with outcomes to stop piracy:
The only way designers can ensure that their creations are not copied is to
insert a secret mark in their clothes, one that is only known to them and
their customers so that copies can be easily detected. Also their designs
should be registered so that they can track down where they are sold.
Designers should also create collections which are so difficult to duplicate
that they will remain safe. Garments from top fashion designers are
expected to be outstanding and unique in styling.

Problems of brand piracy:

1) This January, the photos from the New York Fashion Week were online
before the models were off to the runway. Knockoffs/ fake goods
flooded the stores long before the originals arrive. This causes a major
problem. A designer's/ brand’s success depends on the power of her/his
clothes to command attention. If knockoffs -- even if poor imitations --
show up first, the power is lost.

2) Brands which find themselves competing with the counterfeits suffer a


direct loss in sales and which further affects the goodwill of the brand.

~9~
3) Brand piracy has an adverse effect on image and reputation of the
brand.

4) Consumers start to question the quality and integrity of the brand.

Objectives:

 To study the impact of piracy on renowned brands, and study the


interrelationship between the variables of Brands and Piracy.
 To devise a solution as to how to combat the evil of Piracy.

~ 10 ~
Literature
Review and
Hypothesis

~ 11 ~
ARTICLE: BEWARE OF COUNTERFEIT BRANDS
POSTED: JAN.14.2009

URL: www.articlesbase.com (no author)

(Articles Base SC #722534)

Summarized article:

In today’s time, more and more people are getting ripped off by the sellers of
counterfeit products. It hurts the position of retailer, manufacturer and the
employees. The consumer not only ends up buying an inferior quality product but
also unwillingly supports the business of counterfeiting.

The author says: BY KNOWINGLY BUYING THE COUNTERFEIT PRODUCTS YOU ARE
ACTUALLY PARTICIPATING IN THEFT.

The author says that local retailers have invested heavily to establish their store
and provides a convenient shopping outlet for the customers and work hard to
provide the legitimate products. And it hampers the sales and business of the
retail outlets when the customer purchases a counterfeit product instead of the
original product.

Below given is the example that “HOW STRICT ARE THE DESIGNERS IN GIVING
BUSINESS TO THE REAILERS, JUST TO PREVENT THE BRAND PIRACY”:-

SINSTYLE (AN ONLINE APPAREL STORE), to keep jeans and other clothing in their
retail store, they have to first prove to the designers or fashion house that they
have a legitimate business of professionally representing their brand to public.
Fashion houses or designers than allow certain number of stores to carry their
products and then closely work in contact with them just to avoid the threat of
brand piracy.

Fashion houses or designers will never sell their goods directly to individuals to
compete against their approved suppliers. If someone claims that they are selling
“original products” from the back of their vain, garage, homes etc, it means they
are through some unethical source or else, they are the duplicate or pirated
products.

GAP:

~ 12 ~
1) The author not strongly proved his point that HOW CAN YOU KNOW WHETHER
THE PRODUCT IS ORIGINAL OR COUNTERFEIT. The author should have sited some
more examples/ references of high end brands or labels to prove his point.

2) The author should have conducted the research in context of some particular
brand so as to make the research very valid and “to the point”.

3) Logical reasoning behind all the topics was not very strong because there were
no examples.

ARTICLE: SMALL BUSINESS CAUTION- FAKES AND


COUNTERFEITS ALERT
POSTED: MARCH, 12,
2009

URL: www.articlesbase.com (no


author)

Summarized article: hard times, consumers looking for deals and businesses
struggling to survive creates the ground for pirated goods and fake merchandise.
According to FBI, Interpol, world custom organization and international chamber of
commerce, around 7-8% of world trade every year is in counterfeit goods.

ARTICLE: BEWARE OF FAKE DESIGNER CLOTHING AND


FASHION ACCESSORIES
POSTED: DEC,
31, 2007

URL: www.articlesbase.com

Author: Shasta Cohen

Summarized article: the online selling of fake designer clothing or accessories is a


booming business. While online shopping, if the deal seems just too good to be real
than it most likely is. And fake designer goods are virtually inferior products with
cheap fabrics, crooked stitching, and bad quality

The real tragedy is when some pays good money for a designer product and an
inferior counterfeit product arrives at their door and they cannot help this
situation. In this article, the author says “that many Asian countries are literally

~ 13 ~
flooded with counterfeit products, so you should always avoid buying high end
designer products that are shipped from them.

Even, all the websites should the complete contact information on their websites
and in case, if the complete contact information is not mentioned, it means that it
is not the original website and the website is selling you the fake or counterfeit
products.

GAP:

1) No example of any particular brand is given

2) No solution is given regarding” how to get rid of online counterfeit products”


and what action can be taken against such people.

ARTICLE: REPLICA HANDBAGS, THE PHENOMENON


POSTED: NOV,
10, 2009

URL: www.articlesbase.com

Author: Trevor Eastveld

(Articles Base SC #1440807)

Summarized article: replicas are also called counterfeits or knockoffs. Copying has
become a huge billion dollar industry. Counterfeit products cover about 5-7% of
the global trade, generating a business of $600 billion every year. The availability
of replica items is increasing in recent years. If a certain item becomes
fashionable, than much more interesting stuff is available in the counterfeit
market at much more affordable prices.

The most commonly replicated goods which are available in the market are high
end designer clothes, shoes, perfume, watches, sunglasses and handbags. Many
people willingly purchase replica because they cannot afford original LV, Hermes
or Prada and replicas even give the same look and appeal. According to a survey,
85% of Louis Vuitton bags used today is replicas.

The level of craftsmanship of counterfeited goods can range from decent to


outstanding. The quantity of replica handbags have flooded the market and has
become a headache for big renowned designers like Gucci, LV, Prada, Chanel etc
who have worked hard to earn

~ 14 ~
Prestige and brand names. Millions of dollars are spent by fashion manufacturers
annually to counter this growing problem.

Consumers love replica products just because the price is so right whereas the
fashion houses are known for their high price products. People are always
attracted towards high end luxury brands, the harder and more expensive the
brand makes it for them, the more effect the consumer will put in finding an
easier and less expensive means of getting them. The considerably lower cost also
provides the fashion conscious shopper with the ability to own numerous designer
bags without breaking the bank. Whenever the new fashion line launches, replica
market provides consumer with current fashion trends. Replicated products make
"staying in style" an achievable goal for larger portion of the population.

Buying replicated handbags simply makes economical sense for the average fashion
conscious consumer and is giving a high boom to the counterfeit industry

GAP: 1) no solution has been given to curb this problem

ARTICLE: 10 TIPS TO SPOTTING COUNTERFEIT ABERCROMBIE


& FITCH
Posted: Mar
09, 2008 URL: www.articlesbase.com

SUMMARIZED ARTICLE: This article tells us how to prevent from the Counterfeit
Abercrombie and Fitch. Abercrombie places its zippers on the right side of the
clothes, so if u have it on the left right of the garment its one of the point of the
counterfeit, They really take very good care of the products no chances of finding
any loop strings, sloppiness but it is though not a very important point to check
the piracy because the shopkeepers’ who are seeing it may put an extra effort to
finish shirt properly, they though never use a plastic bag but if it is a online order
then it will be in a plastic bag but it wd be having a logo of Abercrombie ad Fitch ,
they never sell of the stained garments if even discovered one they would remove
it from the shelves, Abercrombie never sells any offseason garments so if you get
one counterfeit, they also go with the standardized sizing for all the garments for
e.g. if you have taken a S size from Abercrombie and the next time you get a S
size and that doesn’t fits you that also detects counterfeit of the brand.
Abercrombie has done lot of efforts to save their brand from counterfeiting and
giving knowledge to the customers so that it can maintain the brand reputation
and as well as the loyalty towards the customers

~ 15 ~
THE GAP: Author has told how the Abercrombie product looks like but still it is
very difficult to know the difference between the counterfeit garments. They also
might have a zipper on the right side of the garments the author should have
concentrated on giving some live examples of the brand for example: a replica is
found but instead of written Abercrombie and Fitch it was written A&F.

ARTICLE: LOUIS VUITTON KING by Slaven Marinovich


POSTED: November 13,
2006 issue

URL:
www.brandchannel.com

ARTICLE SUMMARISED: The above article highlights and gives an overview of the
establishment of Louis Vuitton brand and also helps in depicting the originality and
imitation in various ways. Louis Vuitton products are sold at various Louis Vuitton
exclusive stores only and other high end stores. “BUT ALONG REPUATION COMES
IMMITATION”. Louis Vuitton products are spread worldwide in form of pirated, fake
and counterfeits. Compliances have been made and several heavy penalties have
been imposed by courts for selling make quality products of the brands they have
taken high measures to prevent it. Several plants for making the products have
been shut down on account of sales of counterfeit of the products. Thus, to
determine the genuinity and loyalty of the products it should be bought from
exclusive Louis Vuitton stores.

THE GAP IS: The author in the above article has pointed out the origin of the brand
Louis Vuitton brand. No doubts author have been stating that you should buy the
Louis Vuitton products from exclusive stores, But the author lacks giving the keen
information about the stuffs used for making such brand products and the other
key areas which helps in ascertaining the quality and genuineness of the products
of the brand Louis Vuitton.

GAP

~ 16 ~
The author has not mentioned any specific measures which can be undertaken to
ensure awareness about professional logos rather than cheap logos.

ARTICLE: FASHION’S PIRACY PARADOX


SOURCE: LATIMES.COM, OCT 10 ‘07

Author: Gioia Diliberto

Literature review:

This article mainly talks about the legislations and laws enacted in order to curb
brand piracy, and help designers.

The author says: “Knockoffs fuel the industry, but rob designers. IS legislation the
answer?”

Ever since fashion, and brands came into being, they’ve been plagued by the
menace of piracy and design theft. The earliest example of this is when Chanel
designs were being freely copied and sold in the 1930’s. The copyist was sued, and
found to be guilty. After the landmark judgment, French designs were considered
as ‘real works of art’, and entitled to protection.

Nowadays, even American designers are in search for the same kind of protection
for their designs. A bill, which extends an existing ban on counterfeit articles, was
introduced by 9 US senators in September 2007. This step would provide legal
protection to designs.

However, certain intellectual property experts do not agree with the Bill.
According to them ‘growth and creativity in the fashion industry are boosted
through copying.” The lack of copyright protection is the key to fashion’s success
and the $181-billion magnitude of the company. This situation can be referred to
as the “Piracy Paradox”. Fashion booms because of the fact that customers tire of
their clothes quite regularly, and buy new ones. Hence, styles are rapidly spread
through all levels of society. As a result,

Designers are forced to reinvent their designs, for example, Diane von
Furstenberg’s “Wrap dress”. A designer’s success basically depends on the ability
of his/her garments and designs to grab attention.

US fashion designers, who are seeking protection for their designs should bear in
mind the fact that France’s Copyright Law, which covers fashion design , and the

~ 17 ~
Design Act, which provides patent-like protection to designs have done nothing to
curb or reduce piracy.

Gap:

1. No details on the Bill enacted by US senators.


2. No specific suggestions as to how legal protection can be granted to designs.

ARTICLE: FORGERY AND FAKES:


SOURCE: ARTICLESBASE.COM

Author: N/A

Literature Review:

This article basically talks about how fake and pirated goods are flooding the
market, and posing a direct threat to the existing brands. Fake sportswear,
watches, accessories and garments are found all over the world. For some people,
there is a ‘reverse chic’ in flaunting a knock-off or a fake good. It gives them a
‘high’ or a sense of satisfaction. Counterfeit goods make up over 5-7% of the
international trade. The industries which compete with pirates and fakesters suffer
a direct loss in sales, image, reputation and goodwill. Some markets which are
dominated by pirated goods create strong barriers of entry for the producers of the
genuine product. Consumers, who are manipulated into buying fake goods, blame
the original brand, therefore creating a loss of goodwill. Piracy also has negative
consequences to economies for example, loss of tax revenue and encouragement
of more illegal activities. It also leads to a lack of much required foreign
investment.

Piracy and faking of goods will increase because of:

 Growing cost of development of products.


 Reducing cost of foreign trade.
 The ability to sell via the net, and purchasing without prior
inspection.
 Reduction in the cost of replicating products.

Examples of fake goods caught by customs:

 The German customs agency seized 117 containers holding nearly a million
pairs of Nike shoes, estimated to be over US $490 millions.

~ 18 ~
 The French customs agency found enough fake Louis Vuitton fabric to cover
54 tennis courts.
 Over 18% of the counterfeit goods seized by the US customs were fashion
related – clothing, handbags, watches and sunglasses.

A SECRET MARK CAN STOP THE PIRACY OF GARMENTS


Source: N/A

Author: Meher Castelino

Literature review:

This article refers to the piracy in the Indian market.

Knock offs in fashion aren’t a new feature. Ever since the fashion industry started
booming in India, the imitation and copying of designs began. For example, Ritu
Kumar’s designs were sold out by her own employees. She took strong legal action
and took the pirates to court.

It is extremely difficult to keep a tab on designs, and it’s quite normal to see
designers hurling accusations and comments at each other. The most famous case
of this is the “Suneet Varma v/s Aki Narula” incident over an outfit worn by Rani
Mukherjee in the movie “Bunty aur Babli.”

There are various stores and designers who take pride in selling fake and pirated
goods of famous designer’s creations. Small time and less renowned designers buy
goods form well known brands and designers and selling them under their own
name in small and remote towns.

Louis Vuitton is the most prated brand in the world as it sells for such a high price.
Since the desire to own it is so high, customers don’t mind going in for a cheaper
copy.

It is quite easy to pirate Indian fashion as there are no copyright laws that provide
protection and security to designs. Hence the copyist and pirates have a field day.

The only way designers can ensure that their creations are not copied or
plagiarized is to insert a secret mark in their designs, such as a hologram. Also, the
designs should be registered by way of a patent or a trademark. Designers should
also create collections which are difficult to copy and replicate.

Gap:

~ 19 ~
It is difficult to understand what is meant by a ‘secret mark’.

HYPOTHESIS
Brand Piracy is a major menace and social evil that is plaguing the fashion industry
these days. Counterfeiting harms the reputation and goodwill of the brands. The
original brands tend to lose their value and image which they have managed to
build after years of hard work. They also lose their exclusivity, as each and every
random person can be seen wearing and carrying fake goods. As a result, the
elegance and uniqueness of the original goods deteriorates.

The business of brand piracy is booming due to the encouragement of the


consumers. People and businesses looking for cheap deals and survival create the
ground for counterfeiting products. The industry of fakes and forgery has a
turnover of around $600 billion and above. The craftsmanship and detailing of fake
goods is so perfect and intricate that it almost impossible to make out whether it
is fake or genuine. Designers and brands are taking stringent measures these days
in order to distinguish their products and stop them from being replicated.

For e.g. Abercrombie and Fitch (A& F) place the zippers on its garments on the
right side. If an A&F garment has zippers on the left, then it is immediately
understood that it is fake.

Louis Vuitton also imposes heavy penalties on counterfeiters, and has also shut
down its manufacturing plants in various countries to deal with piracy.

~ 20 ~
Sampling and
Data
Collection

~ 21 ~
3.1 SAMPLING

Method of sampling used is judgmental sampling- As we know in this method study


units are purposely selected. We have handpicked individuals by ourselves. We
have taken those individuals as our study units who were carrying fake branded
products when we visited markets like Janpath, Sarojini Nagar etc.

3.1.1) SAMPLING UNIT- The unit which we have taken for sampling is to study the
opinion of people about brand piracy and counterfeited goods. To analyse how
comfortable are they when they willingly buy a fake or counterfeited product.

3.1.2) SAMPLE FRAME- We had gone to markets like Sarojini Nagar, Ghaffar Market,
and Janpath. We had also interviewed store managers of branded stores in malls
like Select Citywalk, DLF Emporio etc. the brands which are most commonly copied
is - Ed Hardy, Louis Vuitton, United Colors of Benetton, and Burberry.

3.1.3) SAMPLE POPULATION- We have handpicked and interviewed the shoppers at


places like Janpath, Sarojini Nagar. We had distributed about 50 questionnaires
and got them filled from these shoppers. We have taken a total of 50 people as our
sample population within the age-group of 16- 30.

3.1.4 SAMPLE SIZE

 CUSTOMERS- 50
 COMPANY REPRESENTATIVES – 7

3.2 DATA COLLECTION METHOD

 PRIMARY DATA- The sources of collecting primary data was we had taken
individuals as our study units and we had asked them to fill questionnaires in
order to understand their opinion regarding fake or counterfeited products.
We had also interviewed store managers of some brands like Louis Vuitton,
Burberry, Ed Hardy etc, in order to understand how they feel when their
brand is copied and what is the impact of these fake products on the brand
and to what extent counterfeiting affects their sales turnover.

 SECONDARY DATA – The sources which were used to collect secondary data
are articles from the internet, magazines, referred to books from the library
etc.

~ 22 ~
Methods of data collection used in order to understand the objectives of
research are-

 To study the impact of piracy on renowned brands, and study the


interrelationship between the variables of Brands and Piracy.-
In order to study the impact of brand piracy on consumers we have
interviewed individuals and got questionnaires filled in order to understand
how willingly do they buy these products knowing the fact that these are
counterfeited fake and illegal. In order to see the impact of fake brands on
the brands we had also got questionnaires filled from store managers of
brands like LV, Burberry, Ed- hardy etc. as a result of which we got to know
that due to these fake products the sales turnover is also effected to a large
extent.

 To understand the interrelationship b/w variables we have use secondary


method of data collection we have taken reference from articles on the
internet, and books from the library.

 To devise a solution as to how to combat the evil of Piracy- we have use


secondary method of data collection i.e. we have referred to articles by
various designers in which they have mentioned some of ways in which they
can assure that brand piracy does not take place. For instance- Abercrombie
& Fitch in their article have stated that they always place their zippers on
the right side of the clothes and if in case the zipper is on the left side one
must understand that it is a fake A&F product. Designers but their secret
holograms and marks which are only know to them in order to prevent this
problem of brand piracy.

~ 23 ~
Results,
Analysis and
Discussions

Results and Discussions


~ 24 ~
After preparing the coding sheet, these are some of the results in the
form of pie charts and graphs. The question-wise analysis is as follows:

Demographic Analysis of the Respondents:

32% of our respondents are male, and 68% of the respondents are
female.

24% of our respondents were of the age group 15- 20.


50% of our respondents were of the age group 21- 25, and the
rest were aged 25 and above.

~ 25 ~
1.

According to our questionnaires, around 33% of the respondents said


that they are in favour of brand piracy.

2.

~ 26 ~
Majority of our respondents (50%) don’t prefer to buy fake products.
They would rather purchase the originals.

3.

Based on our findings, it was discovered that the Sarojini Nagar


Market is the hub for fake and pirated goods, with over 50% of
our respondents shopping from there.

~ 27 ~
4.

Secret marks should be embedded in the garments so as to curb


brand piracy, say 43% of our respondents.
5.

~ 28 ~
Low prices seem to be the main reason for consumers to buy fake
goods, with around 50% of our respondents choosing this option.

6.

Durability of the product is one of the prime concerns for the


consumers.

~ 29 ~
7.

Most of our respondents (77%) would not purchase fake goods if it


is evident that the product is not original.

~ 30 ~
8.

80% of consumers don’t purchase fake goods out of their own


will.
9.

65% of the consumers are hesitant in telling people that they’re


wearing or carrying a counterfeit product.

~ 31 ~
10.

Purchasing a fake product will hamper the image and


reputation of the original brand.

~ 32 ~
60% of our respondents are aware of the harmful effects of Brand
Piracy.

Retailer’s Questionnaires and Analysis:

~ 33 ~
1.

The ratio of men and women is equal. The questionnaire was


filled up by 6 respondents.

2.

~ 34 ~
Most of the sales staff that filled up our questionnaire was in the
age group of 30 and above.

According to our research survey, 100% retailers are aware about the
brand piracy.

~ 35 ~
According to our research survey, 100% retailers are aware that their
products are being pirated

According to our research survey, 100% retailers are aware of the


places where copies of products are sold.

~ 36 ~
According to our research survey, 100% retailers have said that they do
not sell their products at reduced prices due to piracy.

The retailers of luxury brands said that their customers are very loyal
towards them but the other reasonalble priced brands said that due to
pirated goods available in the market their customers are not exactly
loyal to them

~ 37 ~
50%of the retailers said that peple prefer buying fake products because
of the cost factor.

75% of the retailers agreed that when the fake goods enter the local
market before the arrival of originals, than it hampers the sales of
original brand.

~ 38 ~
75% of retailers said that they would spot the counterfeit products
through their workmanship.

~ 39 ~
Conclusion
 Summary
 Recommendations
~ 40 ~
 Limitations

Conclusion:
5.1 Summary:
After working on the previous 4 chapters of this report, we would like to
summarize and conclude by stating the following points:
 The problem of brand piracy is a menace that is plaguing the fashion
industry
The business of brand piracy is booming due to the encouragement of the
consumers. People and businesses looking for cheap deals and survival create
the ground for counterfeiting products. The industry of fakes and forgery has a
turnover of around $600 billion and above. The craftsmanship and detailing of
fake goods is so perfect and intricate that it almost impossible to make out
whether it is fake or genuine. Designers and brands are taking stringent
measures these days in order to distinguish their products and stop them from
being replicated.
For e.g. Abercrombie and Fitch (A& F) place the zippers on its garments on
the right side. If an A&F garment has zippers on the left, then it is
immediately understood that it is fake. Louis Vuitton also imposes heavy
penalties on counterfeiters, and has also shut down its manufacturing plants
in various countries to deal with piracy.
 China is the hub of fake and pirated goods in the world.
Most of the fake and pirated products are produced and manufactured in
China, and distributed all over the world. The main importers of counterfeit
goods are: India, Thailand, and Sri Lanka etc.
 Louis Vuitton, Burberry and Ed Hardy are the brands whose products are
replicated and very popular in the market.

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These brands are very easy to replicate and copy, as they have their own
distinguishing features and are easily recognizable due to their logos and
patterns. Hence, it is extremely easy to copy these brands and designs.
 Brand Piracy hampers the sales of the original brands.
Since it is extremely easy to purchase copies of original, highly priced
products at a fraction of their costs, the brand conscious middle and upper
class people lean towards purchasing the replicas.
 Piracy also affects the image, reputation and goodwill of the original
brands.
Counterfeiting harms the reputation and goodwill of the brands. The original
brands tend to lose their value and image which they have managed to build
after years of hard work. They also lose their exclusivity, as each and every
random person can be seen wearing and carrying fake goods. As a result, the
elegance and uniqueness of the original goods deteriorates.

5.2 Recommendations to Stop Brand Piracy:


 All the luxury brands whose garments are being copied, they should give
some kind of secret marks in their garments. These secret marks should
only be known the designers and other important personnel’s of that
particular brand.
 The companies, who produce counterfeit products, should be punished
heavy, if caught. When the original brands com to know about the
companies or manufacturers who produces counterfeit of their products,
they should sew the companies and the laws should impose heavy fine on
them so that the same thing could not be repeated again.
 The brand people should give their hologram on their products. So that it
becomes difficult to copy them.
 The government should keep a regular check on the places like Sarojini
market, Janpath, Ghaffer etc to where the counterfeit products are
being sold.
 Educated the consumers about the bad effects of brand piracy and
bringing it to their knowledge that how badly it can affect the image and
sales of the original brand who have put in their hard efforts to achieve
that image.
 The laws should get stricter towards the manufacturers of counterfeits.
 The custom agencies should be more effective in their work; they should
not let the fake products enter the boundaries of country.

5.3 Limitations:

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 Government has imposed many rules and heavy penalties on
counterfeiting but none of the custom officials are ready to follow these
rules –for example counterfeited goods made in china and Bangkok are
imported to India, The custom officials of India don’t perform such
rigorous checking and perform their duty as required.
 The original brands don’t take any strict and threatening actions against
the counterfeit companies.
 Consumers want social status without spending the actual cost for it, the
middle class people who can’t afford to purchase luxury brands such as
Gucci, Prada, Ed hardy etc they go for counterfeited products of these
brands and further the demand of consumers gives a high boom to
counterfeit industry
 The importers of fake products tend to bribe the custom authorities and
this increases corruption in the country.

Bibliography:

 www. google .com


 www. stopfashionpiracy.com
 www.articlesbase.com
 www. emeraldinsight.com
 www.fakesareneverinfashion.com

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