The Effects of Counterfeit Products on Louis Vuitton Brand Image

This report presents a comprehensive study on the effects of counterfeit products on the brand image of Louis Vuitton. The research delves into the perceptions of consumers regarding counterfeit goods, exploring both the positive and negative factors that influence brand image. The study investigates the impact of fake Louis Vuitton products on the original brand, examining market challenges and consumer behavior. The methodology includes an in-depth literature review, a detailed research methodology chapter outlining the type of investigation, research design, approach, and philosophy. The data analysis section provides a thematic analysis of the findings, leading to conclusions and recommendations for the brand. The report aims to understand the detrimental effects of counterfeit products on luxury brands, with a specific focus on Louis Vuitton, and provides insights into strategies to mitigate the negative impact and protect brand reputation. The study acknowledges the challenges faced by luxury brands due to the proliferation of counterfeit goods and emphasizes the importance of protecting intellectual property rights and educating consumers.

A study on the effects of
counterfeit products on
original product brand
image. A case study on
Louis Vuitton

Acknowledgement
Completion of entire study is not possible without the immense support of
mentor. Thus, I want to impart my sincere thanks to my mentor who rendered me
extensive support for the completion of data collection procedure. Also, I would
like to say thanks to my friends who supported me in organizing the interview
procedure. Therefore, successful completion of my entire study goes to my mentor.

Abstract
From the overall dissertation it can be evaluated that counterfeiting products
are considered as unauthorized or fake products that replicates the real or original
products offered by companies in regard to take benefit of superior value through
imitating the original product. However, business is focused upon producing
luxurious, fashionable and designer quality products in order to fulfil the
expectation of consumers. Also, if could be assessed that there are various
mediums through which businesses sale their products such as online medium,
boutiques and departmental stores. However, management of such businesses are
facing challenge of counterfeiting within fashion brand. It could also be identified
that corporation needs to follow the right kind of strategies to attract more
customers. In addition to this, counterfeit products are mostly offered on the social
media under which management can effectively focus on the customers who are
switching towards the brand.

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Background of study.........................................................................................................1
1.2 Problem statement............................................................................................................3
1.3 Research aim....................................................................................................................4
1.4 Research objectives..........................................................................................................4
1.5 Research questions...........................................................................................................5
1.6 Significance of study........................................................................................................5
1.7 Dissertation structure........................................................................................................6
CHAPTER 2: LITERATURE REVIEW.........................................................................................1
2.1 Introduction......................................................................................................................1
2.2 Original brand consumers perceptions on counterfeit......................................................1
2.3 Different factors affecting for positive and negative brand image...................................3
2.4 Effects of counterfeit Louis Vuitton products on original Louis Vuitton products brand
image......................................................................................................................................6
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................9
3.1 Introduction......................................................................................................................9
3.2 Type of investigation........................................................................................................9
3.3 Research design................................................................................................................9
3.4 Research approach..........................................................................................................10
3.5 Research philosophy.......................................................................................................10
3.6 Data collection................................................................................................................11
3.7 Sampling design.............................................................................................................11
3.8 Data analysis...................................................................................................................12
3.9 Research limitation and ethical consideration................................................................12
CHAPTER 4: DATA ANALYSIS................................................................................................14
4.1 Introduction....................................................................................................................14
4.2 Thematic analysis...........................................................................................................14
CHAPTER 5: CONCLUSION & RECOMMENDATION...........................................................23
5.1 Conclusion......................................................................................................................23

5.2 Recommendations..........................................................................................................26
REFERENCES..............................................................................................................................29
Justification of questionnaire:...............................................................................................34

Title- A study on the effects of counterfeit products on original products brand image- a case
study on Louis Vuitton.
CHAPTER 1: INTRODUCTION
1.1 Background of study
In the current era of globalization, it has been evident that there has been change in the
taste and preferences of consumers, lifestyle and attitude and therefore, business needs to bring
change in their products or services so that target customers could be attracted. Businesses are
focusing upon producing fashionable and designer products in appropriate range so that needs
and wants of customers could be satisfied (Dégardin, Roggo and Margot, 2014). Through
improving the growing age of fashion industry, there are various customers who are demanding
commodities in regard to create and build a unique identity in market. Hence, the term fashion
involves various products or service which is required by an individual in order to fulfil their
expectations. In past time, fashion was considered as the only means of consists of essential
things that give any type of reference to the individual dressing sense. While, as compared to this
in current modern world, businesses are focusing upon dress, attire and wearing sense of
consumers. Thus, it helps in becoming an essential part in individual's life and thus it helps them
to allow individual to create a unique image in the society (Kelesidis and Falagas, 2015).
In the present study, counterfeiting products are considered as unauthorized or fake
products that replicates the real or original products offered by companies in regard to take
benefit of superior value through imitating the original product. However, business is focused
upon producing luxurious, fashionable and designer quality products in order to fulfil the
expectation of consumers. But there are certain businesses who launch the replicate products of
the luxurious brands at low prices and thus it damages the brand image of firm in market.
However, through introducing counterfeiting products it impacts upon the original products and
affects the business image (Agarwal and Panwar, 2015).
Through developing Information and Communication Technology (ICT), problem of
counterfeiting products has been increased within the luxury brand market. Louis Vuitton is a
leading luxurious fashion company and provide wide range of products such as clothes, shoes,
accessories, jewellery, books etc. (Bortolini and et. al., 2015). Cited firm aim delivering their
customers with high quality products. It was founded in the year 1858 by Louis Vuitton.
1

Currently, there have established their business in 50 countries and holds up to 460 stores
worldwide. There are various medium through which businesses sale their products such as
online medium, boutiques and departmental stores. However, management of such businesses
are facing challenge of counterfeiting for the fashion brand companies such as Louis Vuitton. It
has been identified that in the late 1970's counterfeiting of the products and services withdrew
the luxury brands completely from the market. It is because it affects the fashion industry that
results in obtaining significant loss of revenues, profitability and competitive strength and
reputation as well. Due to globalization, there are several challenges being faced by fashion
companies as majority of the suppliers products were founded fake, replicas, or counterfield.
Thus, here the focus of carrying out study is to assess the effect of counterfield products upon
luxury brand (Jalili and et. al., 2015).
Counterfeit products has high negative impact over the brand, when customers does not
proper information, then they buy counterfeit products. This way the quality will not be same as
the original product. Customers after making use of the product develop negative image and they
prefer not make purchases of the products that is delivered by cited firm.
Counterfeit products are most commonly known as fake products are affected the luxury
image of brand in market. However, the products look like same as the original products,
therefore, consumers purchase them and thus it affects the brand image of business. Main
problem is the impact of counterfeit goods on brand reputation is both a social and economic
issue. Through, replicating the luxury products which are being sold as through they were
original and imitating such products affect the luxury image in market. Counterfeiting is also
termed as a criminal activity in which branded products are imitated by people and thus it is
affecting the image of brand among consumers (Francis, Burgess and Lu, 2015).
However, counterfeiting product is the challenge to brand owners and manufacturers as
such product impact upon the brand image of firm in market. Therefore, it is essential for
businesses to identify the original product and its effect upon the sale of business. However,
businesses who are focusing upon knockoffs or fakes are imitating the products offered by brand
and thus it affects the brand owners (Dégardin, Roggo and Margot, 2014). Since, they are made
in such a way so that it looks like original and no individual could distinguish the genuine
product from the counterfeit thereby it affects the brand reputation in market. Here, the main
problem is that brand owner devote their majority of the time in designing the product and then
2

build their reputation so that they make huge investment within the market. Thus, the companies
that counterfeit such products affects the interests of consumers and therefore, it is essential for
them to identify the difference between original and imitation. The main impact of counterfeit
products upon brand reputation is both in relation to social and economic. Where counterfeit
luxury products are being sold as they are original and thus brand being initiated risks losing its
luxury status and thus decreases revenue of firm (Kelesidis and Falagas, 2015).
Further, it is being difficult to understand that counterfeit products impacts upon the
brand image and thus it is considered as a criminal activity. Therefore, it is essential for brand
owners to identify the ability to create value in their products through utilising intell property
rights. Thus, through using the law as the tool against counterfeiters to enforce their rights in
their products, logo, design, inventions and brands (Michaelidou and Christodoulides, 2011).
However, within UK such rights fall into two different categories i.e. registered and unregistered
rights. Thus, it helps in overcoming the issues of counterfeit products and thus do not affect the
brand image of firm in market.
Additionally, brand owners requires educating their customers and thus detect the
consumers who are purchasing counterfeit products as they will know the drawbacks of
counterfeited products and thus identify them so that consumers could be made aware about such
products and thus increase the power of brand in regard to attain high profitability. In recent
study, businesses are required to identify consumer behaviour and thus identify their needs so
that desired results could be attained (Stumpf, Chaudhry and Perretta, 2011). It has been assessed
that main harmful effects of counterfeit upon luxury products results in negatively affects
consumers image and thus influence the product quality so that it creates negative impact upon
the brand image of firm in market. Product counterfeiting is considered as one of the most
relevant issues faced by organizations. Therefore, it is essential for them to produce luxury
products in market and thus influence buyers to identify the difference between luxury and
counterfeit products. Thus, business need to evaluate its competitors and therefore, it is
significant so them to assess the image of customers in regard to identify the non users and users
so that business brand equity could be improved.
1.2 Problem statement
In the present study the main problem identified is counterfeiting that affects the
luxurious brand image like Louis Vuitto and also affects brand owners because they devote
3

significant amount of time, funds and put extreme efforts to design, produce and develop
products or services. Further, it has been evaluated that counterfeiters manufactures fake
products of real products and thus affects the interest of owners (Basu, Basu and JK Lee, 2015).
Counterfeit gives rise to social and economic risk because customers are not able to differentiate
among original and imitate products. However, the counterfeiters also charges similar prices for
their products and thus it affects the owners of original products. Hence, due to this such factor
gained interest of scholars in order to conduct research within that particular area and assess the
impact of counterfeiting upon luxurious brand. Due to counterfeit products, Louis Vuitto face
issues in relation with growth and sales. The rate of purchases made by the firm has reduced as
customers are making use of counterfeit products.
Further, the problem statement identifies that counterfeit goods impact upon brand
reputation in both social and economical way. Individual who counterfeit luxury products and
produces imitate products that affects the brand image of business in market. Hence, it is
essential for business owners to assess that counterfeiting the luxury goods is a crime and thus
people involved in that process needs to be identified so that they could be punished for their act.
Brand owner need to quickly identify and deal with such type of counterfeit products (Kelesidis
and Falagas, 2015). However, they need to prepare certain rights so that it could protect the
luxurious products from replicating.
1.3 Research aim
Main focus of research is to examine the effects of counterfeiting practices on original
goods brand image of luxurious companies. Thus, in regard to achieve this, Louis Vuitton is
selected which is a multinational company selling fashionable products to consumers. Further, it
focus ion understanding the rate impact of counterfeit products on brand image of Louis Vuitto.
1.4 Research objectives
 To investigate the original brand consumers perceptions on counterfeit Louis Vuitton
products.
 To investigate the both positive and negative factors affecting brand image of Louis
Vuitton products.
 To identify the effects of counterfeit Louis Vuitton products on original Louis Vuitton
products brand image.
4

 To provide recommendations for Louis Vuitton, how to enhance their brand image and
differentiate their products from Louis Vuitton counterfeit products.
1.5 Research questions
 What is the original brand consumers perceptions on counterfeit Louis Vuitton products?
 What are the both positive and negative factors affecting brand image of Louis Vuitton
products?
 How the effect of counterfeit Louis Vuitton products on original Louis Vuitton products
brand image?
 What recommendations for Louis Vuitton can be made to enhance their brand image and
differentiate their products from Louis Vuitton counterfeit products?
1.6 Significance of study
Following is the significance of study which are discussed underneath-
 It can be assessed that after identifying the research problem, scholar carries out the study
in order to help businesses in determining the counterfeit of luxurious goods and its
impact upon brand image of firm (Dégardin, Roggo and Margot, 2014).
 Another importance of carrying out this study is that it helps business owners to assess
the main problems associated with this in relation to affect the price upon which intimate
products are being sold. Thus, it is affecting the original value of products and therefore,
business owners need to take crucial steps in relation to overcome such problem.
 Study is also being used by different businesses and Phd scholars in regard to develop an
understanding about the effects of counterfeit the original products and its impact upon
the brand image of firm in market.
 Further, identifying the importance of study within different researchers in order to
understand the decreasing performance of businesses due to increasing counterfeit
market. Therefore, analysing the study results in evaluating the effects of counterfeit
products of original products and thus decreased the brand performance of business
(Agarwal and Panwar, 2015).
 Research is also useful for businesses in order to understand the concept of counterfeit
and thus helps in identifying the impact of replicate products on the image of original
products so that brand image of firm could be improved.
5

1.7 Dissertation structure
The dissertation structure adopted by researcher is as follows-
 Chapter 1 Introduction- In this particular chapter, background and rationale of the
subject matter has been discussed. Thus, it assesses that the effect of counterfeit goods on
the brand image of businesses selling original products. In the introduction chapter it
discusses the aim, objectives and rationale upon the selected topic so that discussion
could be carried out further.
 Chapter 2 Literature Review- Further, in this chapter, literature is being carried out
using different scholars and thus overview the study. Further, conceptual framework is
developed that investigates upon the subject matter so that discussion is being carried out.
It is also essential for executing the research upon the topic so that different objectives
could be researched in-depth and obtain proper outcomes.
 Chapter 3 Research Methodology- Here, researcher identifies the tools and techniques
in relation to conduct the study. Research methodology is crucial aspect so that the
selected topic could be researched in an appropriate manner. Also, there are different
techniques such as primary and secondary research that could be used by scholar which
results in conducting the research.
 Chapter 4 Data Analysis- Further, the collected data is being analysed by the researcher
through using different qualitative or quantitative methods. Here, questionnaire is being
prepared and thematic analysis is carried out so that the collected data could be assessed.
 Chapter 5 Conclusion and Recommendation- It is the last chapter in which conclusion
and recommendation has been given upon the particular topic and thus best results could
be obtained. Hence, it helps readers to suggest the areas where further research could be
carried out.
6

CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
This chapter is an important and helpful enough to understand the perception that other
researcher have over similar topic and that is over brand image. There are many authors who
have conducted research on similar topic. This has helped in understanding the present research
aim and objectives (Chaudhry and Stumpf, 2011). Further, it also enables to come up with an
appropriate outcome for the research. Main aim of this research is to make proper investigation
on the efforts of counterfeit products on the original product brand image. Major focus of this
chapter will be to make sure that historic investigation is taken place with similar subjects that
are conducted by other researchers. Different articles and journals will be taken into
consideration to come up with appropriate outcome for the research.
2.2 Original brand consumers perceptions on counterfeit
According to Mavlanova and Benbunan-Fich, (2010) counterfeit products can be
determined as the copy of the original product that will not hold out same quality that original
has. There are different set of perception that people have over the purchases that are made by
people. People tent to make purchases of the product that are provided to them at high quality
and low price. As per Poddar, Foreman and Ellen, (2012) there are many companies that deliver
their customers with similar products and services. Ultimate aim of any firm to gain maximum
profit. This is only possible when they understand the needs and requirement of customers and
provide them services accordingly. In order to gain profit, people tent to copy the products that
are delivered by organization that has high brand value. This way it becomes helpful them to
gain huge profit. There are different reasons that can be determined due to which people tent to
make purchases of counterfeit products. In this context, below given are few of the reasons:
Lack of information: The copy that is made does not have all the elements that are
provided by original product. However, the customers get affected due to the lack of information
that they have over the products (Michaelidou and Christodoulides, 2011). When people do not
have proper information, then they fail to identify the difference in which one is original and
which one is not. However, when customers are well aware of the differences then they will not
prefer to make use of the counterfeit products as there are many negative issues that are faced by
1