Executive Insights: Countering Brand Counterfeiters

Brands represent the most valuable asset that many firms possess, and the associated brand equity is usually the result of years of development efforts. Yet many brands are becoming increasingly threatened by the worldwide phenomenon of brand counterfeiting, whereby imitations of the brand are sold to unwary consumers as the original. Counterfeits are known to flourish especially in developing countries that have weak legal infrastructures and corruptible public officials. What can a company do in the face of this threat? The authors summarize the literature that addresses this issue and provide an in-depth description of how one company addressed the threat of counterfeits in a lucrative developing market. The case illustrates the lengths companies may need to go to respond to counterfeits and raises many issues in relation to these actions.