Almost half of brands (47%) lose sales revenue to counterfeit or pirated goods, with 1 in 3 reporting a loss of more than 10%, according to new research.
New research from MarkMonitor also found that 58% of respondents agree that keeping a brand safe will become increasingly difficult over the next five years, with challenges coming from the areas of artificial intelligence, the dark web, and augmented reality.
In addition, 41% of brands indicate they are already experiencing an increase in brand infringement, while 38% believe they are more likely to be affected by lost sales due to counterfeit goods in the next five years.
“The issue of brand protection has always been a challenge for businesses and it’s an area that is growing significantly based on the increasing threats of counterfeiting, piracy, cybersquatting, and other brand abuse,” says Chrissie Jamieson, VP Marketing, MarkMonitor. “According to the research, brand protection will continue to grow in complexity and as a result it’s vital that organizations adapt their approaches accordingly.
“Brand protection involves a lot more than taking care of the brand itself,” explains Jamieson. “Critically, it’s about maintaining customer trust and protecting consumers from the dangers posed by counterfeiters and online criminals. Our research reflected this notion, showing that the overriding objective of brand protection strategies is to ensure that their customers are safe.”
The study was conducted, in November 2017, on behalf of MarkMonitor by independent market-research firm Vitreous World. This goal of the study was to examine the attitudes and perceptions of marketing decision-makers about online brand protection, as well as their challenges and the state of the industry. Respondents from the UK, US, Denmark, France, Germany, Italy, the Netherlands, Spain and Sweden were included in the study.