Consumers, Counterfeiters, and Luxury Goods

Counterfeit goods are perceived to be a substantial threat to various industries, especially those in the luxury sector, and the globalisation of trade and communication has offered incomparable opportunities for criminals to engage in such illicit trade. Demand for counterfeit products/brands has grown immensely in terms of variety, market size, geographical dispersion, and sophistication. To contain the proliferation of counterfeits and the relative negative impact on society, a deeper understanding of consumer behaviour is needed. An updated literature review on counterfeiting from the demand side, particularly analysing determinants of consumers’ buying decisions and counterfeit product consumption habits, provides such an understanding. Considering that fake products have no context without the originals’ existence, contributions highlighted here adopt a joint perspective in analysing the phenomenon, especially in the consumption domain. An examination of the actual counterfeit supply chain rounds out our view.