Fake products sale
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Transcript of Fake products sale
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7/29/2019 Fake products sale
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21/01/2013 Fake products sale is likely to touch over Rs. 55,000 cr. By 2013- ASSOCHAM
www.assocham.org//prels/printnews.php?id=3632
The widespread sale of counterfeit products across various sectors such as electronic
items, automotive components, consumer durables, pharma, herbal medicine &cosmetic has become so alarming as to capture a market size of Rs 55,000 crorethrough illegal channels by 2013, according to estimates made by the AssociatedChambers of Commerce and Industry of India (ASSOCHAM).
On account of increasing sale of fake products in the absence of regulatory mechanism,the revenue losses to the exchequer would have exceeded Rs. 5,000 crore for fiscal2011-12, further reveal the ASSOCHAM estimates.
Delhi is the hub of counterfeit products in India as nearly 75 per cent counterfeitproducts originate here. FMCG companies having maximum loss up to 45% and an
average loss around 25% of their market share of their well known products, added Mr.D S Rawat, Secretary General, ASSOCHAM.
The sale of contraband electronic items, consumer durables, automotive components,pharma, herbal medicine & cosmetic products, based of ASSOCHAM estimates forfiscal 2011-12 is Rs 25,000 crore. The current market size of fake products sale isaround 45,000 crore, adds Mr Rawat.The other areas in which spurious products sale is going unabated comprise vegetableoils, spices, ghee and even watch components. In these areas of large economic
activities, the fake products sale has been estimated within the range of Rs 15,000crore by 2013.
In a paper on Fake Products Sale, prepared by ASSOCHAM, based on the feed backof its constituents, it has been stated that Electronic, Consumer durables and pharmasectors have witnessed the highest sale of fake products with an estimated amount ofRs 20,000 crore in the current fiscal.
In pharma sector, fake medicines were sold off in rural and semi urban market the costof which works out to be Rs 12, 000 crore with growth of over 100%, says Mr. Rawat
while commenting on the ASSOCHAM paper.
The chamber estimates also point out that Rs 8,000 crore worth of fake products weresold off in areas of vegetable oils, ghee, spices & watch components by 2011-12, ofwhich the large chunk came from the sale of watch components which has beenestimated at Rs 5,000 crore. The genuine manufacturers of watches had to lose outheavily because of huge price differential.
Herbal Medicine & cosmetics sector alone registered a sale of Rs. another 10,000 Cr.in 2011-12, which did a great deal of damage to its consumers, says the ASSOCHAMpaper on fake products sale. The most popular counterfeit market is clothing, followed
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21/01/2013 Fake products sale is likely to touch over Rs. 55,000 cr. By 2013- ASSOCHAM
www.assocham.org//prels/printnews.php?id=3632
by shoes, watches, leather goods, and jewelry.
The biggest concern is, however, the customers attraction towards these pirateproducts is directly proportional to price of these products which are sold at 40 to 45%lesser value than the original. A common man with limited knowledge falls for thecounterfeit products due to its cheap or discounted prices. Enforcement of laws againstcounterfeiting is not so strict in India which is another big jolt for the brand industry.
Recently Dubai authorities also seized US$1.09m in counterfeit electric goods as partof a recent crackdown which included fake goods from leading brands LG, Panasonic,Sony, Sharp and Hitachi. The seized goods weighed a total of 120 tonnes and included5,300 television sets, 7,000 DVD players and various other devices including stereosets, and home appliances.
The chamber is of the view that under the present dispensation, those indulging in saleof counterfeit fake, contraband or spurious products are least afraid of consequencesarising from their being caught. The laws at present hardly provide for effectivedeterrence for the offenders either by way of monitory penalties, damages or criminal
prosecution.
The ASSOCHAM, has therefore suggested that the government must immediatelyimplement bar coding on medicines and electronic items to control fake products.
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