Business Strategies in the Counterfeit Market

Faculty/Professorship: Information Systems and Energy Efficient Systems  
Author(s): Staake, Thorsten ; Thiesse, Frédéric; Fleisch, Elgar
Title of the Journal: Journal of Business Research : JBR
ISSN: 0148-2963
Publisher Information: New York, NY : Elsevier
Year of publication: 2012
Volume: 65
Issue: 5
Pages: 658-665
Language(s): English
Counterfeit trade is amulti-billion dollar industry affecting anever-wider range of goods andmarkets. Despite the diversity of counterfeit products in terms of complexity, manufacturing techniques, investments in production facilities, potential dangers or value for the users, and degrees of conflict for the counterfeit producers with the local authorities, current academic literature still refers to counterfeit producers as one homogeneous group. Against this background, the present study investigates the existence of strategic groups among counterfeiters based on an empirical examination of counterfeited products using cluster analysis. The results indicate that brand owners are confronted with five different groups of counterfeiters: (1) disaggregators, (2) imitators, (3) fraudsters, (4) desperados, and (5) smugglers. The findings of this study contribute to a more differentiated understanding of each group's learning and growth strategies and help practitioners to better position their companies with respect to the counterfeit market.
Keywords: Counterfeit trade, Strategic groups, Anti-counterfeiting, Brand protection
Type: Article
Year of publication: 13. January 2014