Consumers buy fakes due to peer pressure, love for luxury & more: CRISIL
- Common items, from cumin seeds to cooking oil and from baby care items to medicines, are increasingly being reported as counterfeit, said a report by ASPA and CRISIL.
- Nearly 27% of the consumers were unaware that the product was counterfeit at the time of purchase, according to the ‘State of Counterfeiting in India 2022’ report.
- Illicit goods trade stood at ₹2.6 lakh crore in FY 2019-20 in India and affected almost all sectors, said the president of ASPA.
AdvertisementA majority of Indians believe that 25-30% of all the products in the market are fake or counterfeit, says an industry survey. So much so, 89% of them acknowledged the presence of fakes in a report by rating agency CRISIL and Authentication Solution Providers’ Association (ASPA).
“They (consumers) are often compelled to buy counterfeits for reasons such as sensitivity to price, demand-supply gap, desire to buy luxury brands, peer pressure, and social motivations,” the report named ‘State of Counterfeiting in India 2022’ said.
However, nearly 27% of the consumers were unaware that the product was counterfeit at the time of purchase. “Counterfeiting is not limited to high-end luxury items. Even common items, from cumin seeds to cooking oil and from baby care items to medicines, are increasingly reported as counterfeit. An important finding of the survey was that consumer perception pegged the extent of counterfeiting at 25-30% of the market, higher than the general industry expectation,” said Suresh Krishnamurthy, Senior Director, CRISIL Market Intelligence and Analytics.
The survey says that the top segment where consumers come across the most is apparel at 31%. Next comes FMCG at 28%, and automotives at 25%. This is followed by pharmaceuticals (20%), consumer durables (17%), and agrochemicals (16%). The report says that even after discovering that the product is fake, consumers take close to negligible action about reporting.
“Illicit goods trade stood at ₹2.6 lakh crore in FY 2019-20 in India and affected almost all sectors. It is on the rise and heavily bleeding the country, industry, and consumers by large. An aware consumer holds the power to fight this menace; however, we must enhance consumer awareness about this issue,” said Nakul Pasricha, president of ASPA.
The report is based on an independent survey conducted with consumers and retailers covering twelve cities, namely – Delhi, Agra, Jalandhar, Mumbai, Ahmedabad, Jaipur, Indore, Kolkata, Patna, Chennai, Bangalore, and Hyderabad, to gauge their perception of counterfeiting in several key sectors.
Hurt by lockdown job losses, Indian youth is retreating from the labour force: SOIL report
Brides buy half of all gold jewellery sold in India says World Gold Council report
Popular on BI
- We asked ChatGPT who the greatest athlete of all time is and it did not go well for LeBron James
- A man kept the same pair of contact lenses in for 3 years, causing permanent astigmatism and buildup behind his eyelids. His doctor said he's not responsible enough to wear contacts.
- Clarence Thomas wrote a scathing, nearly 50-page dissent about why the Supreme Court should have gutted voting rights
- Heatwave grips India - Bihar, West Bengal, Jharkhand to record highest temperature
- Apple Arcade looks Stronger Than Ever - New & Exciting Games Announced
- What is the best date to set for your SIPs – Beginning, end, or middle of the month?
- Asus ROG Flow Z13 review – a premium gaming tablet
- Must do activities on your visit to Mahabaleshwar