MarkMonitor, a US brand protection company, part of the IP and Science business of Thomson Reuters, released its latest Shopping Report. That covers consumer purchase intent and the demographics of those who acquire counterfeit goods online.
MarkMonitor worked with Nielsen, a market information firm, on what consumers watch and buy, to analyse anonymized privacy-protected data from more than 285,000 of Nielsen’s permissioned online panelists in the United States and five European countries over eight months. Nearly nine million shopping sessions for fashion and footwear were surveyed using proprietary MarkMonitor software during the study period to determine whether shoppers visited sites selling legitimate goods or sites selling counterfeit goods, known as rogue sites. Also studied were shoppers’ motivations, using search terms as guides. By classifying terms like ‘cheap’, ‘discount’ or ‘outlet’ as bargain-seeking and terms like ‘counterfeit’, ‘fake’ or ‘replica’ as fake-seeking, the team examined the aggregated traffic for shoppers to gauge their interest in shopping for legitimate or fake goods.
The study found that the number of bargain-hunters has grown with a ratio of 28 deal-seekers to every one fake-seeker in the US and Europe. This is a rise from an earlier study which found a ratio of 20 deal-seekers to every one seeker of fakes, with the increase most likely fuelled by a combination of factors, including economic conditions and the Internet’s reputation as a great source for deals. While consumer’s bargain hunting in digital channels continues, the panellists in the study appeared to be less likely to stumble upon a rogue site, with a ratio of one in ten bargain-hunters visiting a rogue site versus a one in five ratio in the earlier study. However, the new study found that once a bargain hunter does encounter a rogue site when seeking a bargain, they are just as likely as shoppers in the earlier study to be duped by the perceived ‘quality’ of the rogue site with one in six online bargain hunters displaying an intent to purchase.
Fredrick Felman, chief marketing officer of MarkMonitor, said: “Savvy shoppers are continuously looking online for deals and are falling victim to counterfeiters who have camouflaged themselves as legitimate purveyors of desirable goods, changing the rules of the game in brand protection. The findings from our Shopping Report stress the importance for brands of developing proactive strategies to safeguard their brands so customer trust is not undermined by illicit digital activities.”
The report examined shopper demographics, including age, gender, income, education levels, and household size. In both the United States and Europe, the largest segment of rogue site shoppers were in the 31 to 50 age range (40 percent in US, and 43 percent in Europe), followed closely by millennials in the 18 to 30 age range (30 percent in US, and 25 percent in Europe). In addition, MarkMonitor found that females comprised the largest percentage of rogue site shoppers at 56 percent in the US, and 53 percent in Europe. Another area of similarity between European and American rogue site shoppers occurred when examining the presence of children in the household, as 56 percent of the rogue site shoppers in the US did not have children present in the household while 61 percent of European rogue site shoppers did not have children present.
Rogue sites can fool even the most experienced shoppers, whether an aspirational consumer or a brand loyalist, Felman added. “Brands that take steps to ensure that brandjackers do not come between them and the consumer realise a positive return on investment across all channels.”
