Celebrated on November 24th, Black Friday is considered the most important day for online shopping, recording a total revenue more than $9 billion in 2022. However, online businesses have it a bit harder: while their sales and revenue increase, they are more vulnerable to counterfeit attacks.
The dark side of Black Friday
Counterfeits imitate the look and feel of an original product with lower prices and quality. These products not only infringe on the intellectual property rights of original brands but also use unethical processes to produce the good itself.
Counterfeiters aim to reduce costs as much as possible when producing a fake, compromising the quality and origin of the materials, processes and labor used. Therefore, during Black Friday sales, markets are flooded with deals and discounts, making it even harder for consumers to spot the fakes and hence deceiving users into purchasing them.
Negative consequences for consumers
Spotting fakes and detecting online impersonation isn’t a simple task, and Black Friday, with its massive influx of online shoppers and deals, creates an even more uncertain playground for consumers. Counterfeiters, conversely, have it easier to deceive unsuspecting consumers into purchasing fakes, believing they have found a great deal.
As a result, consumers will receive a low-quality version of the product they intended to buy. Contrary to the original product, these fakes don't hold up to the standard promised by the authentic brand, leading to a poor user experience and harming the brand-consumer relationship.
Negative consequences for brands
Brands, on the other hand, may seem to have less of an issue in terms of revenue loss due to the high volume of sales. However, counterfeits not only harm their business by reaping part of their revenue but also significantly damage brand reputation and customer relationships.
Consequently, brands selling online without a brand protection service increase their chances of losing sales and customers in the long term, as users will not feel as comfortable purchasing their products online.
Gray Market
The Gray Markets are the places where other vendors can also take advantage of this by offering - without prior authorization - legitimate products at discounted prices that may not adhere to brand standards or warranties through unauthorized channels.
Suspicious Websites
During Black Friday, beware of scammers creating websites to deceive consumers. These fake sites imitate popular brands and trick consumers into purchasing products that are not authentic or products that the client may never receive. Such illegal activities erode trust in online shopping and in the brand itself.