Luxury Brands

Luxury is the business of exclusivity. The Internet is a big equalizer of information and access.
While luxury brands have forever debated whether the Internet can replicate the luxury experience they provide in their physical stores, most brands are now using the Internet as a channel to reach consumers. In the 5-year period from 2009-2014 online sales of luxury goods grew 4x faster than offline sales1. The online sale of luxury goods could triple to €70 billion by 2025, accounting for 18% of the sector’s total sales.2

Evolution of the global personal goods luxury market

Billion euros

Online sales account for 6% of the 2014 global luxury market

Source: Altagamma-McKinsey Digital Luxury Experience Observatory

Counterfeiters are also exploiting the growth in Internet retail by illegally producing and selling cheap lookalikes, destroying the brand equity that the luxury brands have built over the years. Most fakes will be of poor quality and might cause harm to consumers, not to mention the loss of revenue to the brand IP holder, loss of taxes to the government and a massive dent to the economy by way of jobs lost.

It is estimated that 5-7% of world trade is counterfeit. In the EU, 13.5% of sales in the watches and jewellery sector and 12.7% of the sales in the handbags and luggage sector, is lost to counterfeiting.

  1. Business of Fashion, Special Edition no.6, February 2016.
  3. Digital inside: Get wired for the ultimate luxury experience


Type of counterfeit goods seized at borders

Latest available, % by value

Source: US Department of Homeland Security; European Commission

*Includes accessories

Whilst customs and police have traditionally dealt with counterfeiting by seizing and destroying fake goods, tracking and preventing counterfeiting online is a challenge with complexity of a much higher magnitude.

Online, counterfeiters can stay anonymous, reach across borders and constantly launch new websites to evade legal action. This problem is compounded by the global and borderless nature of e-commerce, the scale of online-counterfeiting and different laws of enforcement in different geographies.

Traditional services for monitoring infringements often result in a massive dump of data, making it difficult to identify the high-impact issues to act on.

A website that only appears in the bottom pages of Google search results is a minor problem compared to a website that is always in the first page of results, but too often brands are not given the information to enable them to prioritise. An Instagram account linked to wider fraud is of a greater concern than a one-off post promoting a single counterfeit product for sale.

INCOPRO’s flagship product – TALISMAN protect copyrights, design rights and trademarks, globally, using its proprietary clustering technology that provides intelligent cross-platform insights about infringements, and ranks and prioritizes them for a “one-click” action for the IP rights holder.

TALISMAN can help detect and enforce on the following IP infringements:

  • right-arListings of counterfeit fashion products on major B2B
    and B2C online marketplaces.
  • right-arAbuse of design rights online.
  • right-arUsing social media (e.g. Instagram) to engage with customers and sell counterfeit fashion goods and attempting to bi-pass the difficulties of visibility of a domain or marketplace listing.
  • right-arAbuse of paid search to mislead customers by piggybacking on brands.
  • right-arUsing a domain name with a trademark or setting up rogue look-a-like websites to sell counterfeit products.

TALISMAN is supported by a multi-lingual team of expert analysts covering Mandarin, Cantonese, Arabic, Russian, Japanese, Hindi etc. These analysts are overseen by leading IP legal and law enforcement intelligence experts. This expertise enables them to identify abuse of design rights where no trademarks are infringed, leverage platform relationships and ensure swift resolution where infringements have been identified.

Click here for more information on TALISMAN

INCOPRO can enable your company to:

Develop a targeted approach to tackle commercial scale operators abusing your brand online
Ensure that your consumers retain their trust in your legitimate e-commerce platforms
Protect brand equity and reputation globally
Increase efficiency and efficacy of enforcement – through an end to end solution
Reduce costly out of system legal action
Target resources where needed
Optimize revenue and marketing investment

Find out why INCOPRO is preferred by the world’s most established brands.