Counterfeit makeup and skin care problematic for consumers and brands, shows MarkMonitor data

By Deanna Utroske

- Last updated on GMT

Related tags Cosmetics

Counterfeit makeup and skin care problematic for consumers and brands, shows MarkMonitor data
The brand protection company has released a new report indicating that at least 25% of consumers surveyed have unknowingly bought fake cosmetics and personal care products. And the MarkMonitor data suggests that ecommerce may be helping facilitate the sale of counterfeit beauty items.

The problem isn’t limited to the Americas market. MarkMonitor’s report includes survey answers from consumers in countries across Europe and Asia as well. All told, respondents in the US, the UK, France, Italy, Spain, Germany, Denmark, the Netherlands, Sweden, and China contributed to the company’s Global Online Shopping Survey 2017.

“The threat of counterfeiters is ever-present, affecting both brands and consumers​,” Anil Gupta, chief marketing officer at MarkMonitor, says in a press release about the new report. And, he goes on to explain the stakes for each are quite different.

“For brands it’s all about the loss of revenue, reputation and customer trust,”​ says Gupta. “However, when it comes to non-genuine consumer goods such as cosmetics, skincare, sun care and medicines, the consequences for shoppers are far greater, affecting their health and wellbeing.”

Brand trust

The majority of shoppers have no intention of buying counterfeit consumer goods. 83% “stated they would not buy non-genuine consumer products, such as make-up, skincare and medicines,”​ according to the release. And it’s interesting to note that 40% of consumers surveyed who discovered that they had bought counterfeit items “complained directly to the brand.”

Consumers not only hold brands accountable after the fact, they also expect brands to safeguard their supply chain and retail channels. “34% of respondents...believed it was a brand’s responsibility to protect them from counterfeiters,” ​reports MarkMonitor.    

Channel richness

The survey, which the market research firm Vitreous World conducted at the behest of MarkMonitor this May, found that 27% of respondents had bought fake CPGs. Of those consumers, 32% discovered that they had bought counterfeit makeup and 25% had bought counterfeit skincare.

All of the purchases in question were made online. And consumers discovered the products via search engines, apps, social ads, and in online marketplaces, according to MarkMonitor.

Still, consumer trust of ecommerce proved to be high: “Brand websites were most trusted (89%), followed by online marketplaces (74%), online pharmacies (67%) and mobile apps (67%).”

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