Effects of Counterfeit Products on Luxury Brands

PROJECT PROPOSAL AND
PLAN

CONTENTS
Title..................................................................................................................................................1
Background......................................................................................................................................1
Aim..................................................................................................................................................1
Objectives........................................................................................................................................1
Research questions...........................................................................................................................1
Rationale......................................................................................................................................1
Significance.................................................................................................................................2
Scope............................................................................................................................................2
LITERATURE REVIEW................................................................................................................2
Theme 1: Concept of Counterfeit products.................................................................................2
Theme 2: Impact of counterfeit product on luxury brands..........................................................3
Theme 3: Solution for the challenge in order to improve brand performance............................4
RESEARCH DESIGN AND METHODOLOGY...........................................................................5
RESEARCH PLAN.........................................................................................................................7
RISK MANAGEMENT..................................................................................................................8
REFERENCES................................................................................................................................9

Title
An investigation on the effects of counterfeit products on luxury brands: a case study of Louis
Vuitton
Background
Louis Vuitton is a luxury brand company who has bene headquarter in Paris, France. They
are being involved in selling a high amount of luxury goods including bags, shoes, perfumes,
jewelleries, accessories and sun glasses (Purwanto and et.al., 2019). It has been analysed that the
rise of counterfeit products can potentially cause businesses to experience an increase in costs, as
well as the loss of productivity. This is because of the reason that brand is selling expensive
fashion accessories which is not affordable by everyone, so there are chances that people buy the
first copy of same thing in lower prices. This can lay impact on performance of brand and also
can create high competition for them.
Rationale
The main reason for carrying out this research is that Counterfeiting is affecting the markets
of luxury brands like Louis Vuitton which is a luxury brand for products like bags for males and
females and it was founded in 1854 in Paris (Hawkins, 2020). These products are affecting their
brand performance. It has been analysed that from fake hand bags to mock sunglasses,
counterfeit products have ill effect on the other brand. It is the largest growing underground
industry and lots of people are involved in buying the counterfeit products. This has resulted into
falling profits of organisation (Moon and et.al., 2018). The lucrative market of counterfeit
products is affecting fashion companies like Louis Vuitton. Their profit has been lowered down
and cost is being increased because of the counterfeit product. The counterfeit products account
for half a trillion each year. Revenue is being lost and also negative reputation is being created
because of the counterfeit products. For this company needs to think of better solution so that
their brand performances cam be increased and also they will be able to achieve the set target
and objectives.
Significance
This topic is really important and need to be discussed as counterfeit products are severely
impacting performance level of counterfeit and also brand value of luxury company is also
affecting. It has also been analysed that in the counterfeit products which is purchased by
consumers, they receive lower quality products and also value of cost is not been created. They
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can also receive damaged and broken goods when buying the counterfeit products. It has also
been analysed that counterfeit products are attracting large number of consumers towards
themselves (Moon and et.al., 2018). This is because of the reason as they want to show their
class. This attitude of consumers is lowering down the profitability of luxury brand.
Scope
Scope of the topic is really broad, as the counterfeit products can have severe negative
impact on working of luxury brand. It has been analysed that counterfeit of Louis Vuitton is
making the luxury products affordable to consumers and this is severely affecting brand value. It
has also been analysed that because of this reason the revenue of luxury goods company is
coming down. Brand is getting hugely affected as because of this anyone can buy counterfeit
product of Louis Viton and this is affecting the volume growth of Louis Viton (Davidson,
Nepomuceno and Laroche, 2019). This is because they are investing so much to provide high
quality products and also to build up brand reputation of their own. This is severely affecting the
popularity of Louis Viton and they do not want this to happen.
Research Questions, Aims & Objectives
Aim
To determine the effects of counterfeit products on luxury brands and potential solutions to
improve brand performance.
Objectives
 To analyse the concept related to counterfeit product
 To evaluate the impact of counterfeit product on luxury brands
 To recommend solution for the challenge in order to improve brand performance.
Research questions
 What is the meaning of counterfeit product?
 What is the impact of counterfeit product on luxury brands?
1. What are the solution for the challenge in order to improve brand performance?
LITERATURE REVIEW
Theme 1: Concept of Counterfeit products
According to Harun and et.al., (2020) counterfeit products are the goods which are duplicate
or first copy products of the luxurious brand. High number of consumers are attracted towards
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