Shutting Down Distribution of Fake Consumer Goods
A total of 68 of the 93 stores were selling counterfeit or diverted products that included items that could potentially harm the client’s customers, their brand reputation, and their bottom line.
Millions of dollars in sales revenues are diverted annually through the manufacturing and trafficking of counterfeit consumer goods. In addition to the direct and immediate loss of sales revenues by manufacturers whose goods are counterfeited, companies also face the potential loss of goodwill due to consumer dissatisfaction from experiences with the almost always inferior quality of the counterfeited goods. Also, governments lose out on unpaid tax and incur large costs in enforcing intellectual property rights. Everyone is losing, and we are here to combat this phenomenon.
The Challenge
Toltec was contacted by one of it’s many Fortune 500 clients with a unique request to conduct a brick and mortar market survey in a very specific neighborhood in New York City. It was reported to Toltec that executives visiting the area had noticed a rash of counterfeit products being sold in the local neighborhood convenient stores and pharmacies. Due to the nature of the product, the client’s concern was not only centered around the millions of dollars being lost to the fake versions, but more so the potential health and safety risks to their loyal customer base.
The client was convinced that a market survey would help them understand the size and scope of the problem as well as allow Toltec. // Brand Protection investigators to further determine the distribution sources of the counterfeit products.
The Solution
The Toltec operations team worked closely with our field investigators to map out a plan of action for conducting the market survey. Over the course of the investigation, a total of 93 stores were visited in which the client’s product was being sold and was purchased by Toltec investigators. The products were documented as evidence and securely delivered to the client for examination and evaluation. We found out that a total of 68 of the 93 stores were selling counterfeit or diverted products that included items that could potentially harm the client’s customers, their brand reputation, and their bottom line.
The Result
Since this operation, Toltec has worked with the client to investigate dozens of importers, distributors, and wholesale operations involved in the sale of these dangerous fake goods. Toltec’s quick work and efficient operations have led to the documentation necessary for the client to control and put a stop to many of these operations, thereby greatly reducing the amount of fakes that end up on store shelves and in the hands and homes of their customers.
