The counterfeit chessboard
It's a well-known phenomenon among both watch brands and consumers, so there's nothing very new about counterfeits. Or perhaps there is…Experts currently agree that, despite concerted efforts to improve the effectiveness of the international fight, this scourge is currently thriving more vigorously than ever before.
This widespread phenomenon affects virtually all economies. According to calculations based on goods seized by customs officers, the fake market would appear to account for 5 to 7% of international trade. These statistics are very similar to those observed in the watchmaking world. The Federation of the Swiss Watch Industry (FH) estimates the production of fake Swiss watches at 40 million units per year – a spectacular figure when compared with the 26 million original Swiss watches exported in 2007.
“We have witnessed a flurry of anti-counterfeit operations in recent years”, says Marc Frisanco, deputy director of the Richemont Group's intellectual property department. “Everywhere, companies are seeking to defend themselves, laws have been changed and instruments have been put in place to this end. Despite these efforts, we have to admit they have resulted in failure, because counterfeiting is a spectacularly thriving business these days. When you wipe it out in one place, it pops up more forcefully than ever elsewhere. Nonetheless, of one thing we can be certain: if we were to stop fighting counterfeiting, it would actually swallow us up entirely! We won't be able to eradicate it, that's for sure, but we must still not give up, but instead continue to act wherever this plague is most apparent."
Diluting brand image
It is important to actively fight against the production of fake watches that is detrimental not only to the image of the industry, but also to its economy, as well as raising serious consumer and public health issues. Such are the arguments generally put forward in the brands' official comments on this type of problem. Nonetheless, it is hard to obtain any further information on the impact of fakes on each brand, since their spokespersons generally refuse to communicate on the reality of the phenomenon. However, a quick Google search is enough to find plenty of fake watches carrying the logo of most Swiss brands. Even those who claim to be not greatly affected, because their production is aimed at a narrow audience and is thus not a temptation for counterfeits, are not really immune to its effects.In addition to its disastrous consequences on the economy of the watch industry, counterfeiting also dilutes the brand image that watch companies have spent decades building up. Openly agreeing to associate one's name with the reality of counterfeits is not well regarded. The systematic plundering of intellectual property rights significantly undermines the brand's reputation, since consumer confidence is inevitable sapped by the inferior quality of the fake watches flooding the market.
Above and beyond such consequences on the industry itself, which indeed spends tens of millions of dollars each year on fighting fakes, counterfeiting also has concrete repercussions on consumers' daily lives. The number of jobs lost because of counterfeits of all kinds of products is estimated at 100,000 per year within the European Community and 120,000 in the United States. These are figures that make you stop and think. As do the clandestine working conditions in which counterfeit products are manufactured and which often imply exploiting children. Nor should the public health issues be ignored, since many counterfeiters are prepared to use low-quality materials that tend to be allergy-inducing, includingnickel in spite of the legal ban on this metal.
Consumers at the very centre of the equation
Despite all these facts, it is very hard to get the message across to the end customer. “There will always be people who think that even reasonably priced genuine watches are still too expensive”, explains Marc Frisano. “Some people need to be reassured regarding their social status by wearing a recognisable object on their wrist. And that has never been truer than today.” That is indeed one of the reasons why the Federation of the Swiss Watch Industry, in partnership with the Federation de la Haute Horlogerie, has cho-sen to target the end consumer through its new awareness-raising campaign. The goal is “to draw attention to the damage caused by counterfeits and to dissuade people form buying copies”, explains the President of the FH, Jean-Daniel Pasche. And as Marc Frisanco points out “You can't fight counterfeits without engaging consumers. They are at the centre of the equation.” A fact well worth thinking over in these tough economic times when values appear to be refocusing on authenticity and culture.
