Almost half (47%) of brands lose sales revenue to counterfeit or pirated goods, new research from brand protection firm MarkMonitor has revealed.
In the study conducted by market research firm Virtuous World, one in three respondents also reported a loss of more than 10%. Respondents from the UK, US, Denmark, France, Germany, Italy, the Netherlands, Spain and Sweden were included in the study.
It found that 58% of respondents agree that keeping a brand safe will become increasingly difficult over the next five years, with challenges from artificial intelligence, the dark web, and augmented reality.
In addition, 41% of brands suggested they were already experiencing an increase in brand infringement, while 38% believe they were more likely to be affected by lost sales due to counterfeit goods in the next five years.
Chrissie Jamieson, VP marketing of MarkMonitor, said: “The issue of brand protection has always been a challenge for businesses and it’s an area that is growing significantly based on the increasing threats of counterfeiting, piracy, cybersquatting, and other brand abuse.
“According to the research, brand protection will continue to grow in complexity and as a result it’s vital that organisations adapt their approaches accordingly. Brand protection involves a lot more than taking care of the brand itself.
“Critically, it’s about maintaining customer trust and protecting consumers from the dangers posed by counterfeiters and online criminals. Our research reflected this notion, showing that the overriding objective of brand protection strategies is to ensure that their customers are safe.”