Approximately 40% of the Russian market operates in an illicit capacity.
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Counterfeit merchandise poses a substantial headache, steadily flooding Russia's market and jeopardizing both businesses and consumers. Kommersant reveals this disquieting trend.
Counterfeit products aren't merely a burden on the economy. They erode trust in the market, compromise legitimate brands, and can endanger lives - take automotive parts or electronics as examples, where researchers caution of potential hazards.
Counterfeits most frequently appear in categories such as automotive components, apparel, and household appliances. According to Rosselkhoznadzor, in 2024, the biggest culprits were butter and olive oil.
On certain consumer platforms, the percentage of fakes can stretch up to 40%. In Russia currently, 25% of clothing and sportswear, plus 20% of non-alcoholic beverages are phony. On average, the Ministry of Industry and Trade estimates that one in ten products is a knockoff, with food items, smartphones, computers, children's toys, and pet food leading the charge in this "gray market."
The predicament worsens because an impressive portion of counterfeits closely mimic genuine items, particularly in online sales. Roughly 40% of illicit goods are offloaded through marketplaces. Dishonest vendors elude digital labeling requirements and generate fake certificates, while platforms remain unable to verify authenticity. Testing commenced in December 2024 exposed that over 90% of registered manufacturers were bogus. Analysts predict improved transparency in online sales and greater trust in e-commerce by transferring certification control to state bodies, consequently boosting revenues at all levels.
Previously, DK.RU disclosed that publishers of board games lose about 2 billion rubles each year to Chinese counterfeits, while the gray market for cosmetics in Russia has hit record proportions. Experts estimate the turnover of unregistered or imitation drugs and medical devices in the cosmetics industry at a staggering 100 billion rubles, or 40% of the entire beauty services market.
Also, check out DK.RU for further insights:
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Remember, counterfeit products not only provide an economic challenge but can also endanger lives. It's crucial to remain vigilant and support legitimate businesses, not just for financial reasons, but also to ensure the safety of ourselves and our loved ones.
It's no secret that counterfeit products wreak havoc in both local and international markets, with Russia unfortunately not being an exception. Economic and health threats lurk as these fake items undermine trust in the market, jeopardize legitimate brands, and can pose serious health risks – particularly in the pharmaceuticals and electronics sectors.
What's the Damage?
- Financial Losses: Upsetting the balance, counterfeit products challenge fair competition by undercutting genuine products' prices.
- Health Risks: Subpar or harmful items, such as dangerous medications or counterfeit electronics, endanger consumers' well-being.
What Efforts are Being Made to Combat Counterfeit Products?
- Tightened Regulation: Increased monitoring and control over supply chains, as exemplified by crackdowns on counterfeit dairy products, illustrates the government's efforts to expel fakes from the market.
- Public Awareness: Awareness campaigns can educate consumers, reducing demand and aiding legitimate businesses.
- Improved Laws and Enforcement: Strengthening Intellectual Property rights and enforcing them is essential, although it's contingent on streamlining legal procedures and enhancing institutional capacity.
- International Collaboration: Joint efforts between countries and international agencies can help identify, dismantle, and prevent counterfeit supply chains that operate transnationally.
Awareness is the key to confronting the tide of counterfeit products. Stay vigilant and make conscious choices to support genuine products and safeguard your well-being.
Technology plays a critical role in the fight against counterfeit products in business and finance. For instance, improved verification systems can help ensure the authenticity of products sold online, reducing the percentage of fakes. Moreover, public awareness campaigns can use news platforms, email newsletters, or social media like Telegram or VKontakte to educate consumers about the risks associated with counterfeit goods, thereby reducing demand and supporting legitimate businesses.
