Countering counterfeit trade illicit market insights, best-practice strategies, and management toolbox Thorsten Staake, Elgar Fleisch.

Part A

Knowing the Enemy – The Mechanisms of Counterfeit Trade ......... 1
1 An Introduction to Counterfeit Markets ............................................................. 3
1.1 The changing nature of counterfeit trade................................................... 8
1.2 A global problem – Frequently discussed, little understood................... 14
1.3Counterfeiting is not parallel trade is not overproduction – Why
a clear problem definition is needed ....................................................... 16
1.4 Academic publications on counterfeit trade............................................ 19
2 Understanding Counterfeit Supply ................................................................... 23
2.1 Strategies and production settings of counterfeit producers ................... 23
2.2 Distribution channels and shipment strategies for illicit goods .............. 35
2.3 Exploring the counterfeiters’ business case ............................................ 41
2.4 Research on counterfeit supply ............................................................... 44
3 Counterfeit Demand and the Role of the Consumer ........................................ 47
3.1 Consumer behavior in counterfeit markets.............................................. 47
3.2. Developing brand- and product-specific consumer studies .................... 56
3.3 Research in counterfeit demand .............................................................. 59
Part B Countermeasures – Best Practices and Strategy Development......... 67
4 Established Anti-counterfeiting Approaches – Best Practices ......................... 69
4.1 State-of-the-art in anti-counterfeiting...................................................... 69
4.2 The characteristics of successful practices.............................................. 77
4.3 Research on managerial and legal countermeasures ............................... 79
5 Implementing Anti-counterfeiting Measures ................................................... 85
5.1 Monitoring processes............................................................................... 85
5.2 Reaction processes................................................................................... 91
5.3 Preventive measures ................................................................................ 93
5.4 Organizational structure of anti-counterfeiting units .............................. 97
Methodology ........................................................................................................... ix
Acknowledgements ................................................................................................. xi
Foreword.................................................................................................................. v
Counterfeiting is not parallel trade is not overproduction – Why
a clear problem definition is needed ....................................................... 16

Organization of the Book ..................................................................................... xiii
Developing brand- and product-specific consumer studies .................... 56
Part C Management Tools – Towards a Fact-based Managerial
6 Determining the Market Share of Counterfeit Articles.................................. 103
6.1 A critique of existing statistics .............................................................. 104
6.2 Macroeconomic calculations................................................................. 114
6.3 Microeconomic calculations.................................................................. 121
7 Implications for Affected Enterprises ............................................................ 125
7.1 Quantifying the loss of revenue............................................................. 125
7.2 A model to assess the impact on brand value........................................ 133
7.3 Implications for quality costs, liability claims, and future competition 141
7.4 Positive effects of counterfeit trade....................................................... 144
7.5 Research on the impact of counterfeit trade.......................................... 146
Part D Product-protection Technologies ....................................................... 149
8 Principles of Product Security Features ......................................................... 151
8.1 Classification of protection technologies .............................................. 151
8.2 Attack scenarios and their implications................................................. 155
8.3 Requirements for security features........................................................ 157
9 The Potential of RFID for Brand- and Product-protection ............................ 161
9.1
9.2 Technical principles of RFID technology ............................................. 170
9.3 Solution concepts................................................................................... 177
9.4 Application scenarios ............................................................................ 187
Part E Managerial Guidelines and Conclusions........................................... 197
10 Guidelines....................................................................................................... 199
11 Concluding Remarks ...................................................................................... 207
Appendix ............................................................................................................. 209
About the Authors ................................................................................................ 231
Approach...............................................................................................101
List of References................................................................................................. 211
List of Abbreviations............................................................................................ 225
Index..................................................................................................................... 227

An introduction to the Internet of Things..............................................162

Counterfeit trade is a highly complex phenomenon. It is a ruthless crime as well as a smart knowledge-transfer strategy – and it is everything in between. Companies need a thorough understanding of the strategies of illicit actors, the role of the consumer, and the associated implications in order to develop successful brand- and product-protection measures. Providing this know-how is the key-objective of the book at hand. The authors present an unbiased, in-depth analysis of the supply- and demand-side of the illicit market, outline state-of-the-art brand- and product-protection strategies, and introduce a set of novel tools to support market monitoring, reaction, and prevention efforts. Furthermore, challenges with established product security technologies are highlighted and the benefits and hurdles when using Radio Frequency Identification (RFID) as protection technology are discussed. A major benefit of the book is the strong focus on assisting practitioners to deal with the challenges; another is the high standard of research that backs up the findings presented.

Includes bibliographical references (p. [211]-224) and index.