Counterfeit Jewelry and Luxury Goods: How to Fight the “Fakes” Market?
Identifying the actual size of the knock-off jewelry market is difficult. Presently, it’s estimated that jewelry and luxury goods might not be the most counterfeited items, but they have the highest market value. In 2017, the cost of seized counterfeit jewelry and watches was $460,162,145 in the USA only. It takes a lot of expertise and research for anti-counterfeit providers to spot fake jewelry, as it is usually falsified with a high level of precision.
Protection officers seized a shipment of counterfeit jewelry and watch worth $1.4 million. The load was confiscated in Philadelphia, and it’s known to be one of the most critical cases of seized counterfeit goods in the USA. The batch came from Hong Kong, as typically most of the fraudulent products come from Asian or African countries.
The vicious industry is quickly expanding, and you might wonder what its perils are. If you dig deeper into the issue, it’s clear that it does not only harm large manufacturers but also threatens everyday consumers. Nonetheless, the market does not stop growing and imperils more and more areas. To diminish the risk luxury goods producers are turning to the most innovative concepts of our age. A great example is blockchain technology. In this article, we will discuss how blockchain is an eligible tool to fight such harms.
The Threats of Knock-off Luxury Items
At first glance, bogus jewelry or similar items don’t seem like a significant threat. It’s usually cheaper than the real ones, and it’s almost impossible to tell the difference. However, fakes are way harsher than you might think. First of all, the most widely recognized issue is the loss of revenue. Yes, genuine brands are suffering from counterfeiters and losing millions. Of course, for some of them, it doesn’t seem like a serious problem, but it affects more than only big corporations. It also complicates the journey of small manufacturers to the market and, in many cases, eliminates them.
A few years ago, an organization called The Ecology Center conducted a study to identify how harmful cheap and fake jewelry is. Apparently, cheap knock-offs harm not only manufacturers but also consumers due to high levels of toxic ingredients. The organization found out that more than half of the jewelry tested contained dangerous chemicals and high levels of toxic metals. Some of them can put you in a considerable risk of getting an allergic reaction, yet some of them can cause chemical burns and more severe damages.
Not to mention, most of fake goods producers use cheap and, in most cases, child labor. As a result, it does not only affect us but also all people around the world. Therefore, as a luxury items manufacturer, you should always consider a fair trade and ensure that your customers get the best quality and genuine products. For buyers, it’s essential to raise the awareness of such harms and know how even a small purchase can impair you and people around you.
Is Product Tagging Using Blockchain Technology the Answer?
To answer this question, we should look closely at the solutions that blockchain technology provides. With features like track and trace, storing smart contracts, and providing significant levels of transparency and privacy, blockchain strikes as one of the most promising technologies to fight the counterfeit market. By implementing and empowering these features, industries could work on:
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