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Causes of the Phenomenon of Counterfeiting

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Counterfeiting has always been punished through eras. For example, during the medieval age, authorities used to cut off counterfeiters’ hands. Later in the history, France has considered forgery as an illegal act after the revolution in the year 1789. China was the first country to introduce paper notes as money, but it was democratized during the lasts three decades. These ones had not the same way of controlling money and the same means to fight it… That’s when forgery has seen its explosion and also when it has begun to be taken into consideration by a lot of occidental countries.

Although the counterfeiting phenomenon was affecting mostly money and bills at the beginning, counterfeiting has finally reached all level and all kind of products. For example, nowadays, all famous brands producing luxury goods, medicines, alcohol, clothes, and wider all products with an important added value are counterfeited. It is almost impossible to quote any brand that doesn’t have a branch of the company that is focused on fighting against forgery.

The presence of counterfeiting all around the world is based on several facts, inter-connected for most of them. We are going to number them and to try to find the reasons that have lead to this huge phenomena.

The first reason may be the market maturity of any sector. Indeed, forgery is easier to establish on a mature market. Counterfeiters have more knowledge and more time to analyze original products in order to copy them the best way possible. For example, a company as Louis Vuitton that produce the same kind of bags for decades will be more subject to be counterfeited because its way of producing is not changing a lot and forgers finally learn their way of producing and reuse it for counterfeiting.

Another reason for forgery is the social situation in some countries or in some regions. Countries with strong social inequalities have more chance to be subject to forgery. It could consider inequalities in term of social classes, incomes, the way of living, etc. For example, in China, it is very current to meet people with counterfeited products. These same people attach a real importance to the image they reflect. It is very important for them to show off in different ways, including counterfeited products. Be seen wearing products of famous brands will help them to enhance their social image and not to be seen as poor people for example. It is not only about the Chinese market but wider for most developing countries in Asia and South America.

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