I have noticed a lot gets lost in translation, either unintentionally or intentionally. There are now common product terms such as imitations and refurbs (i.e. refurbished), amongst others. There is nothing particularly wrong in selling such just as you indicate what they are. However, there is a growing practice of labelling the aforementioned as originals. Then, of course, there are outright counterfeits. For instance, fake products are packaged in such a way that resembles the original version. Annually, the global economy loses over US$500 billion due to counterfeits.
Counterfeit Products Are A Global Challenge
Some of the most counterfeited products, especially in Zimbabwe, are Clothing, Consumer Electronics, Food & Beverages, and Medicines. The challenge with counterfeit goods in Zimbabwe is it has become akin to a willing seller, willing buyer scenario. Many Zimbabweans are prepared to purchase counterfeit goods knowingly. This is part of what is driving the demand upwards.
Asia seems to be a recurrent mention regarding sources of some counterfeit goods in Zimbabwe. For example, counterfeit clothing in Zimbabwe is sourced from Asia for the most part. This is counterfeit in the sense of fake brands. Did you know that original fashion brands lose over US$50 billion in sales annually, all because of counterfeits?
State Of The Zimbabwean Economy: A Core Driver Of Counterfeit Goods
Given the state of the Zimbabwean economy, many people are resorting to just about anything. This usually results in informal business ventures. This is meant to cut corners and dodge regulatory oversight. No wonder why the informal sector is extremely bigger than the formal sector. It is sad that some formal businesses are sourcing from informal businesses. It is profitable to source substandard stuff and then price it as original. I will not mention brand names, but many are doing so in Zimbabwe. All these unethical business practices and more stem from the unstable nature of the economy in Zimbabwe.
The alternative form of employment is in unsafe, unhygienic, unregulated selling points and underground factories which manufacture products that are equally unsafe, unregulated that endanger the health and safety of consumers. This has played havoc on the social and economic well-being of our nation’
⁓ Anti-Counterfeit Watchdog
Technological And Digital Advancements A Double-Edged Sword
There are obvious and many gains from such advancements. There are now limitless opportunities for almost anyone interested in doing business. One particular one is that of manufacturing. It is now much easier and even cheaper to source equipment to manufacture products. That is well and good. However, it is also why manufacturing counterfeits is much easier. It is very easy nowadays to make or print branded packaging that looks like the original or legit one. The stark reality is that virtually any product can be counterfeited in this day and age. So well has counterfeiting advanced that it can now be indistinguishable from the real thing.
Implications Of Counterfeit Goods On The Economy
The supply chain of these goods is mostly illicit. Thus, tax evasion means no meaningful contribution to the economy. Formalized businesses’ performance is heavily compromised. They fail to compete with the cheaply priced fakes. Counterfeits do also contribute to more socio-economic challenges. For instance, consumers are getting short-changed due to overpriced counterfeits. Then some products, if counterfeit, can lead to possible harm, e.g. health challenges. This feeds into negative effects on the economy.
Trade in counterfeit, illicit, and fake goods has become a formidable threat to businesses, consumers, and intellectual property. It undermines local investments because it creates an unequal playing field for legitimate businesses and weakens efforts to attract foreign direct investment.’
⁓ Anti-Counterfeit Watchdog
The overarching effect is economical, as we have established. At the most basic, counterfeits undermine the originals. Consumers will prefer them due to the lower price point. Thus there will be business losses for manufacturers and sellers of the originals. There can also be reputational damages to the brand in question. Consumers may become opposed to a particular brand, not realizing they are dealing with fakes. The original brand ends up paying for sins it did not commit.
Original Brands Behind Some Of The Fakes: An Interesting Take
The rationale here is to push volumes since fakes are often lowly priced. It becomes more profitable because the brand uses substandard materials or methods. Another strategy could be to outsmart those making and or selling the counterfeits. The ideology is: you make or sell fakes, so I will do the same (even better) to realize sales in the same space. Thus there is this speculation that original brands may also be actively involved in counterfeiting. What do you think?
Protecting Yourself Against Counterfeit Products
This depends on the nature of the products in question. For instance, buying counterfeit clothing may not be an issue. After all, many of you will know that it is counterfeit. What would be important is to be wary of overpricing. Some sellers prey on unsuspecting consumers. They can price counterfeits as much as or close to the originals. Thus you need to have at least an appreciation of the quality and price points of the originals. That way, you can note when someone is trying to dupe you.
The issue becomes different when dealing with other critical types of products. Such products include food items, medicines, parts (e.g., vehicle parts), consumer electronics, and so on. These are products whose use, if not in order, can lead to damage, injury, illness, and even death. You have to be extra vigilant in ascertaining you are not buying counterfeits. Do not be overly focused on just the cheapness. You set yourself up for potentially life-threatening consequences in pursuit of cheap things.
That is it about counterfeit products in Zimbabwe. It is detrimental in many ways. What do you think can be done to address the issue?
