BackAlmost 25-30% products sold in India spurious with counterfeiting: Report
Counterfeiting is most prevalent in apparel (31%), FMCG (28%), and automotives (25%) are the top segments where consumers came across a counterfeit product, followed by Pharmaceuticals (20%), consumer durables (17%), and agrochemicals (16%), the report said
PremiumNEW DELHI : Almost 25-30% of all products sold in the country are spurious with counterfeiting being most prevalent in apparel and FMCG sectors, followed by pharmaceutical, automotive, and consumer durables, a joint report by Crisil and the Authentication Solution Providers Association (ASPA) said.
“Counterfeiting is most prevalent in apparel (31%), FMCG (28%), and Automotives (25%) are the top segments where consumers came across a counterfeit product, followed by Pharmaceuticals (20%), Consumer Durables (17%), and Agrochemicals (16%)," the report said.
As much as 27% of consumers are unaware that products are counterfeit at the time of purchase, but 31% willingly purchase spurious products, it added.
The survey also reveals that almost 89% of consumers acknowledge the presence of fake products in the market and 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 is based on an independent survey conducted with consumers and retailers covering twelve Indian cities (Delhi, Agra, Jalandhar, Mumbai, Ahmedabad, Jaipur, Indore, Kolkata, Patna, Chennai, Bangalore, and Hyderabad) to gauge their perception of counterfeiting in several key sectors.
“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 per cent of the market, higher than the general industry expectation," Suresh Krishnamurthy, Senior Director, CRISIL Market Intelligence and Analytics, said.
“Illicit goods trade stood at ₹2.6 trillion in FY 2019-20 in India and affecting 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. Consumers play the most crucial role in fighting against fakes. When many consumers are unaware of the actual threat from counterfeits, the country will never be able to harness the strength of active consumer participation in curbing the sale of fake products in the market," Nakul Pasricha, President of the Authentication Solution Providers Association (ASPA) said.
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