Luxury Counterfeiting

Abstract

Luxury counterfeits are appealing to certain shoppers because they provide the signaling value of luxury brands at a lower price. Because of the myriad challenges facing policymakers and law enforcement, the stigma of using counterfeits has been diminishing and counterfeit sales have been on the rise. Research has been conducted on the characteristics of those more likely to purchase counterfeits, and investigations into the social and emotional motives that underlie counterfeit use have also been undertaken. Despite all of this attention, it is still unclear which levers can be utilized by law enforcement to enact demand-side limitations that will reduce the on-going proliferation of counterfeits. The chapter reviews the literature, particularly in marketing, in order to provide some insight to brand managers, policymakers, and law enforcement agencies who are attempting to curb counterfeit consumption.