Fakes Becoming Socially Acceptable In UK, Says Survey

by Robin Pilgrim, LawAndTax-News.com, London

25 July 2007

A survey published by UK law firm, Davenport Lyons has revealed that owning counterfeit luxury goods has become increasingly acceptable to consumers in the United Kingdom.

The survey, entitled 'Davenport Lyons' Counterfeiting Luxury: Exposing the Myths 2007 Report' revealed, however, that almost 80% of consumers would be deterred if they knew that such sales helped to fund criminal activity.

The research revealed that nearly two thirds of UK consumers (up 20% on 2006) are "proud to tell their family and friends that they bought fake luxury clothing, footwear, watches or jewellery".

Consumers are also spending more on counterfeit goods, according to Davenport Lyons.

Average figures for 2007 showed that shoppers spent 10% more on faked designer and luxury products than the previous year; around GBP21.30 per person. More than 10% of those questioned laid out over GBP50 for a counterfeit luxury item.

"The social acceptability of fake goods is a deeply concerning shift in consumer behaviour. Given the balance of findings in our 2007 Report, the time has come to tackle the UK demand for fakes head on," observed Simon Tracey, Head of Intellectual Property & Brands at Davenport Lyons.

Other key findings included that:

• Almost 71% of consumers would stop buying fake items if such purchases resulted in custodial sentences;
• 68% of those questioned believed, however, that purchasing fake goods should not be made illegal;
• The most effective way of changing consumer behaviour towards fakes would be to highlight that the proceeds are going towards the funding of organised crime, including terrorism.

"This is sadly an issue with international ramifications and it is clear that the public needs to be made aware of whose pockets they are lining when they buy a fake. Interestingly, criminalising the purchase of counterfeit goods would not work as an isolated step in the short term. Unless consumers are made aware of the implications of buying fakes and the part the money they hand over can play in organised crime generally together with the specific threat to global security, matters can only get worse," Tracey stated, continuing:

"Deterrent activity so far has understandably been mainly focused on revealing the extent of seizures of fake items by Customs and Trading Standards. However, this Report shows that approach has the least impact on fake buying patterns. Those efforts therefore need to be bolstered in the clearest of terms with specific data about where the proceeds of fakes go. Brands also need to distinguish clearly between the factories that make genuine items and those that churn out fakes."

"On any view, the current lack of consumer awareness needs addressing carefully in order to turn the tide against counterfeiting. Inevitably, this is a substantial challenge as prosecuting authorities will not wish to disclose evidence that could prejudice their ongoing criminal investigations. However, with full political support, much more data can and must be brought out into the public domain to drive down demand from, and thus stem the flow of fakes into, the UK. Consumers need to understand that by buying fakes, they aren't just getting a relative bargain; they are fanning the flames of a much deeper social problem - crime and criminality."

Although the highest percentage of fakes were purchased in UK markets, the increase in the popularity of overseas travels means that more counterfeits are being bought abroad than ever before.

The Davenport Lyons figures revealed significant increases since last year in the proportion purchased whilst travelling in: Europe (up 5% to 45%), India (up 7% to 10%), China (up 7% to 8% ) and the rest of the Far East (up 7% to 19%).

Of those questioned for the survey, 29% admitted having purchased their counterfeit item/s via online marketplace, eBay.

The report further revealed that 31% of fake buyers bought the counterfeit item believing it to be the genuine article. Louis Vuitton, Gucci and Burberry emerged as the most frequently faked labels.

The study asked over 2,000 UK consumers for their views on counterfeiting and copying brands.

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