Fake goods market worth $700 billion

With an estimated value of over half a trillion dollars the global market in counterfeit goods poses a real threat to luxury brands.

The Tax Free World Association (TFWA) has put counterfeit goods on the agenda in the lead up to it’s annual World Exhibition & Conference which takes place in the Palais des Festivals, Cannes from 26^th to 31^st October.

The threat posed by the influx of counterfeit goods to the luxury goods market including wines and spirits will be the topic of discussion at a special workshop at TFWA 2014 this month.

“Estimates from OECD value the global counterfeit market at between USD 600 billion (£373b) and USD 700 billion (£435b) per year, and we know that the counterfeit goods market is a huge problem for premium brands, many of whom are members of TFWA,” said Erik Juul-Mortensen, President of the TFWA.

“Although our industry is successful in ensuring that goods offered in duty free & travel retail outlets are sourced from genuine suppliers, the threat of fakes is always present and indeed growing as miscreants become ever more inventive,” said Juul-Mortensen.

The seminar is designed to encourage debate among suppliers, retailers and landlords under the banner ‘Counterfeit – a Real Threat to our Industry’.

Hosted by TFWA in partnership with French manufacturers’ association Unifab, the panel of speakers taking part includes Bob Barchiesi, President of US anti-counterfeit association IACC, Emmanuelle Hoffman, lawyer at Cabinet Hoffman and Vice-President of UNIFAB, Philippe Lacoste, Vice President of UNIFAB and Nestor Martinez-Aguado, who is responsible for intellectual property at the French Foreign Ministry.

As reported by the drinks business, sales of fake big brand wines are already on the rise in the UK and the recent court case of Rudy Kurniawan in the US has shown that even the finest wines are susceptible to fraud.