Brand theft costs industry an estimated $450 billion a year worldwide through product counterfeiting and grey market diversion. Well-recognized consumer brands that have been carefully nurtured over the years through reliable quality and value are at risk as manufacturing moves to less-developed countries in order to benefit from lower-cost manufacturing. Unfortunately, product counterfeiting often originates in the same countries - even the same factory - where the official products are manufactured. Dangerously, the recognized and trusted brand name is the only asset that many companies retain within their developed nations, as all product manufacturing is sourced overseas.
Product counterfeiting of lower quality look-alikes is not flattering: it creates brand erosion and loss of brand equity through loss of customer base. Long-term customers often believe their trusted brand has declined in quality because - unknowingly - the customer is using a counterfeit product that was manufactured with lower-cost ingredients. The packaging of these look-a-likes is nearly identical, so the average consumer does not notice the difference when purchasing the item. Many high-value items - consumer and retail product brands, garments, tobacco and alcohol products, and pharmaceuticals - are at risk of counterfeiting. New innovations in desktop computing make producing convincing fakes cheaper and easier than ever before.