The International Market for Brand Protection Solutions Special focus on China

The International Market for Brand Protection Solutions Special focus on China

This 300-page plus report comprises 2 volumes:
. VOLUME 1 - Markets, Landscape & Trends - End User Vertical Markets
. VOLUME 2 - Technology Overview – Counterfeiting / Brand Protection Solutions – Opportunities
& Trends - Summary of Market Sizing, Forecasts & Opportunities
Scope of the report - Premium / luxury product categories:
. Fashion & Sports Apparel / Clothing & Footwear (incl. Sneakers)
. Watches & Jewellery
. Bags & Luggage (Leather goods, Women’s Handbags, Sports bags)
. Sunglasses
. Beauty & Personal Care (Fragrances, Cosmetics, Skincare).

The world of counterfeiting & also brand protection has evolved almost beyond recognition over the last couple of years and China continues to be at the epicentre of it all both in terms of supply and also demand.

Changes have been fuelled by eCommerce with its multiple effects, itself accelerated by COVID-19 (lockdowns, travel restrictions & variety of important knock-on effects) - Some of these changes will be permanent & irreversible, some perhaps not.

The market for brand protection solutions globally is forecast to see substantial 16% year-on-year growth through to 2026, which will be matched if not exceeded in China.

Furthermore, global counterfeiting is multi-facetted:
. Counterfeits sold in the China domestic market to Chinese consumers:

o Counterfeit versions of International Brands created in China:
. Sold in China
. Exported for international sale

o Increasingly, counterfeit versions of fast-growing high quality Chinese Brands
. Sold in China
. Exported worldwide (undermining the image of such Chinese brands

And in the medium / longer term beyond 2026 the China the prospects for brand protection in China look even better due to a number of clear indicators:
. China accounts for around 80% or more of the World's internationally traded counterfeits (source OECD / Homeland Security)
. Chinese counterfeiters are highly resourceful and often well-funded (*)
. The population of China was some 1.445 billion as of mid-2021. Representing nearly 20% of the population of the World today, with China set to become the World’s Number One Economy in the future.
. A fundamental shift is going on in China - From simply “Made” in China & created elsewhere towards “Conceived & Created” in China - No longer should China be simply viewed as a lowcost producer for international brands.
. Emerging homegrown quality Chinese Brands are today widely on sale in the China home market, competing successfully against international brands, while increasingly being exported to international markets.

(*) International solution providers need to be mindful of the risk of their own proprietary technologies themselves being copied, cloned and / or compromised and are not vulnerable to reverse engineering / cloning when operating in the Chinese market.

A new era of the Chinese homegrown domestic premium / luxury brands post COVID-19 is emerging, leveraging on:
. Continuous improvements in the quality of Chinese products
. A better understanding the fast-changing needs & wants of Chinese consumers of all ages & socio-economic circumstances
. Shorter supply chains, local presence, more agility and ability to respond quickly to shifting demands
. Strong patriotic purchasing trend.

As these Chinese companies strengthen their brands, their products are going to inevitably need protection against counterfeiting, if not already.

Meanwhile, arguably homegrown Chinese counterfeiting is increasingly having a negative impact on China itself, as well as the other countries suffering from Chinese exported counterfeits.

The huge China market cannot be viewed as homogenous with both similarities to other cultures & differences that are unique to China. While there are certainly strong national traits, there are also big differences within the Chinese nation and its consumers, with quite distinct & different attitudes, behaviour, preferences, loyalties as well as budgets, with:
. Marked distinctions in the habits of younger millennials & GenZs who are driving the market in China
. Further breakdowns between Tier cities 1, 2, 3 & beyond across China.

Selection of ‘fit-for-purpose brand protection technology for China needs careful consideration given this huge country’s uniqueness & importance in the world of counterfeit branded products and brand protection solutions providers operating in China need to tailor their solutions based on good insights into the Chinese situation.

Meanwhile, there are increasing indications that Chinese government is starting to crack down more on the huge problem of counterfeiters operating in their country, for example:
. China’s new eCommerce Law - Online Market Regulation
. US-China 2020 Phase One Trade Deal - Combatting Counterfeiting.

Further Chinese government intervention and robust legal sentencing can act as a stimulus to brand owners to invest further in brand protection.

Companies that have developed effective integrated brand protection solutions & established a presence in China (or close by in Asia, for example Hong Kong) today will be better placed to meet the future needs of brand owners in China.

Opportunities for brand protection solution providers across a range of the vertical markets & product types in China have been identified in the course of Vandagraf research.

VOLUME 1 – Markets, Landscape & Trends - End User Vertical Markets

Drivers & Developments

China is a Particular Challenge - Some Fundamental Changes in the Chinese Landscape, Patterns of consumer behaviour unique to China
. Homegrown Chinese Technology Brands – Domestic / International Markets
. Millennials & GenZs in China – Leading the Charge
. “Made” in China & Created Elsewhere to “Conceived & Created” in China’Millennials & GenZs in China – Leading the Charge
. Quality Related Matters, Premiumisation, Complicit Consumer Behaviour - Deceptive / Non-Deceptive, ‘Real Fakes’ – Very High-Quality Counterfeits – Growing Trend
. Target Markets for Brand Protection in China – 1st, 2nd, 3rd Tier Cities & Beyond in China

Impacts of COVID-19, Lockdowns & Travel Restrictions, Tourism, Duty Free Sales, Daigou Professional Chinese Shoppers

Dramatic Rise of eCommerce - A New Mix of Offline / Online

Supply Chain - Big Shipments by Sea vs. Small Packages by Mail / Courier – Trade Routes Highly Complex

Pre-Owned 2nd Hand Market - A Major Trend, Some Examples – 2nd Hand Platforms, Authentication is Essential, Sustainability / Circular Economy

Vertical Markets China
. Apparel & Footwear – Fast Fashion, Sportswear & Sports Footwear (Sneakers), Offline / Online - Distribution Channels, Case Studies Chinese brands, Xinjiang Cotton
. Watches, Swiss luxury Brands, Quartz, Smart Watches, eCommerce & Watches
. Jewellery, eCommerce, Social Media
. Bags & Luggage, Women’s Handbags, luxury luggage, Sports Bags, eCommerce
. Sunglasses, Premium versus Mass Market, Bricks & Mortar Stores versus eCommerce, Leading International Manufacturers with Operations in China
. Beauty & Personal Care, International Brands – Historical Reliance on Chinese Tourism for Sales, Products Need to be Custom Tailored for Chinese Consumers, C-Beauty - Chinese Homegrown Beauty Brands – Gaining Traction in International Global Markets, Premium versus Mass, Tailored for Chinese Consumers, Case Studies, Cosmetics in China, Fragrances in China, Skincare in China, Tighter Regulations as the Chinese Skincare Market Matures, Skincare & Facemasks

International & Domestic Brand Owners in China – Market Shares, Competitive Landscape, Market Concentration / Fragmentation, Markets Shares by Brand Owner – International & Domestic / by Vertical Market in China

Online / Offline Marketplaces – China, Leading physical / Street Markets that facilitate counterfeiting - China, Online Marketplaces, eCommerce & Social Media in China.

VOLUME 2 - Technology Overview Counterfeiting - Brand Protection Solutions - Opportunities & Trends Summary of Market Sizing, Forecasts & Opportunities

Introduction, Main stakeholders, Brand Awareness Across China by Region - Offline / Online

Vertical Markets, Counterfeiting

. Apparel & footwear, Fast Fashion, Streetwear, Sportswear & Sports Footwear (Sneakers), Counterfeit ‘Bricks & Mortar’ Retail Stores in China. Fibres, Yarn, Thread, Textiles, Wovens
. Watches & Jewellery, Types of counterfeit Watches, Unauthorised Reverse Engineering of Watches with Digital Technology, Replacement Parts for Watches
. Bags & Luggage, Luxury Women's handbags & luggage, Inspecting a Luxury Bag for Authenticity
. Sunglasses, Consumers Underestimate Dangers of Counterfeit Sunglasses, Product Placement
. Beauty Products - Counterfeiting, High Growth & Strong Brands, Health Hazards, High Risk of Re-filling and Dilution

Brand Protection, Fast-Moving Digital World, Developing a Brand Protection Strategy for China, Risk of Replication of the Brand Protection Solution Itself, The Toolbox, Major Brand Protection Technology Groups & Materials, Tamper Evident Solutions, Technologies & Materials for Brand Protection, Opportunities for Providers of Brand Protection Solutions, A Reality Check - Passive / Active / Forensic Technologies - 1st, 2nd, 3rd Levels of Defense, Fighting Counterfeiting Holistically, Trend towards Integrated Solutions, A Layered Approach or Standalone, Sportswear Brands Moving to DTC (Direct to Consumer) Sales Business Model

Brand Protection in China, Offline / Online, Selecting Tools for Brand Protection in China, Unique ID & Smartphones, Mass Serialisation, Post-Purchase vs. Pre-Purchase Verification

Major Technology Groups, Brand Protection, Forensic Markers / Taggants, Security Optical - Devices & Materials - OVIDs/ DOVIDs, Security Inks, Coatings, Pigments & Dyes

Connected Packaging, Brand Protection, Digital Printing Facilitates ‘Mass Customisation’ – Unique Codes, Unique ID - Single Platform – Multiple Functionalities - Enhanced ROI, Radio / Electronic vs. Optical Platforms, Specialty vs Commodity Products – Cost per Item, Optical Technology Platforms, Consumer Engagement – Favoured by Brand Owners, Coding Options

Packaging / Labels Converters & Security Printers, Security Features, Form Factors, Devices & Materials, Security Printing, Trends - Packaging / Label Converters and Security Printing, Tamper Evident Solutions, Trends in Tamper Evidence

Summary of Market Sizing, Forecasts & Opportunities, Growth Rates – Luxury / Premium Markets in China, Overall Value of China Markets Investigated in this Report, Counterfeiting – Premium / Luxury Products, Chinese Cities - Tier 1, 2, 3 & beyond, Hotspots for Counterfeiting – Product Categories Identified, The Brand Protection Solutions Market – Offline, Brand Protection – Global Market, Brand Protection – China Market – The Future, Brand Protection Technologies – Growth Rates, Types of Opportunities - Brand Protection Solution Providers, Overview - Evolution of Markets, with breakdown by vertical markets

APPENDICES, Putian – China’s Capital of Counterfeit Footwear, Ancillary Support Services & Follow-Up, Blockchain, International Agreements & Laws, Anti-counterfeit Initiatives – Government / Commercial, Notes on Types of Product Crime.

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