Fighting brand counterfeiting in E-commerce

Nike as an example

Diploma Thesis , 2006 , 118 Pages , Grade: 1,3

Business economics - Offline Marketing and Online Marketing

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In the following first chapter of the study, a few basic remarks on brands and Ecommerce are first considered. In addition, the concept of brand and its functions are presented, followed by an overview of the development and use of eBusiness in general. After a brief description of the Nike brand in the second section, the following chapter provides a concrete account of brand and product piracy. Forms in which fake products appear, strategies of counterfeiters, causes and effects are explained. Particular emphasis is placed on the factor of the Internet and the effect of online auction houses as well as the problem of piracy for the Nike brand.

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The fourth part presents possibilities and measures for fighting brand and product piracy. This includes, as a first step, becoming aware of the problem and recognizing the potential danger for a company. Following recognition of the problem of piracy, the second step is implementing suitable response measures. In addition to the legal situation and international approaches, measures for protecting the value added chain are discussed together with specifically adapted responses of different areas of companies such as Research and Development, Marketing, and Sales. Measures involving company strategies and policies are also considered. The last step deals with some concrete recommendations for how to deal with the problem from the point of view of Nike, which serves as a focus in developing methods for such areas as working together with government authorities, strengthening communication and security, and developing technological means of providing security.

Finally, the fifth chapter of the study summarizes essential points and provides some recommendations. In addition to the need for more extensive legislation and greater efforts from companies to take legal steps – both certainly necessary – constant monitoring of the piracy situation must also be ensured, especially on the Internet. The development of effective communication activities as well as fine-tuning of distribution also promise much success in the fight against lost sales and damaged image.

Table of Contents

• THE BRAND
• SIGNIFICANCE OF A BRAND
• TYPES OF BRAND
• The brand as a product identifying discriminating criterium
• Competence of a brand
• Brand development
• FUNCTIONS OF A BRAND
• Function through Ancestry
• Differentiation-, Individualisation- and Identification function
• Quality-, Warranty- and Trustee function
• Communication- and Advertising function
• THE VALUE OF A BRAND
• Protectability
• Components of brand value
• Brand vulnerability
• ECOMMERCE: REVIEW OF DEVELOPMENT AND USAGE
• EBUSINESS ON THE INTERNET
• B2B business
• B2C business
• C2C business
• NIKE: THE BRAND
• THE EVOLUTION OF THE BRAND
• Overview of Nike as a company
• Nikes distribution policy
• BRAND- AND PRODUCT COUNTERFEITING
• THE TERM BRAND- AND PRODUCT COUNTERFEITING
• VARIETY OF COUNTERFEITING
• GROWTH AND EFFECTS OF COUNTERFEITING
• Causes of exponential changes
• Economic and social effects of counterfeiting
• Effects for companies and brand owners
• Effects on consumers
• Effects on the national economy
• Demand for pirated and counterfeited goods
• Types of counterfeiting strategies
• China
• COUNTERFEITING ON THE INTERNET
• Impact of eCommerce
• Distribution and Production in eCommerce
• Auction Platforms
• Online deception strategies
• COUNTERFEITING AND NIKE
• REMEDIES & PRESENT MEASURES
• A LOOK AT THE LAW
• Law security and trademark rights protection
• Judicial position on auction-platforms
• Criminal or civil remedies
• COUNTERFEITING: METHODS AND RESOLUTION IN THE MARKET
• Commercial Web- and Brand monitoring
• International Resolutions
• WIPO
• TRIPS Convention
• Community brand Law
• Product Piracy Regulation
• Strategies of international companies
• International & national anti-counterfeiting organizations
• Customs
• NIKE'S METHODS OF RESOLUTION
• IMPROVEMENTS IN FRAUD RESISTANCE
• Technical security features in products and packaging
• Integration and cooperation
• Activity in the product development phase
• Distribution and Marketing
• Price- and condition strategy
• Logistic actions
• Activity in the production phase
• Strategic activity
• Do nothing or laisser faire
• Political actions
• Cooperation with organizations and associations
• The new bill of Home Secretary Zypries
• Communication and public relation
• Distribution Supervision
• THE PROSPECTS FOR NIKE

Objectives and Key Themes

This thesis aims to explore the issue of brand and product counterfeiting in the context of eCommerce, focusing on Nike as a case study. It examines the significance of brands, their evolution, and the challenges posed by counterfeiting. The thesis delves into the various types of counterfeiting, its growth, and its effects on companies, consumers, and the national economy. Additionally, it explores strategies for combating counterfeiting on the internet, including legal measures, international resolutions, and company-specific approaches.

• The importance and value of brands in today's marketplace
• The growth and impact of brand and product counterfeiting in the digital age
• The challenges of combating counterfeiting in eCommerce, particularly on auction platforms
• Strategies and measures employed by companies like Nike to combat counterfeiting
• The legal framework and international cooperation in addressing counterfeiting

Chapter Summaries

• Chapter 1: "The Brand" introduces the concept of brands, their significance, and their various functions. It discusses the different types of brands, including product-identifying brands and competence-based brands, as well as the importance of brand development. The chapter also examines the value of a brand, including its protectability and the factors that contribute to its vulnerability.
• Chapter 2: "Nike: The Brand" provides an overview of Nike's history and its evolution as a brand. It explores the company's distribution policies and its strategies for maintaining brand recognition.
• Chapter 3: "Brand- And Product Counterfeiting" defines the term "counterfeiting" and examines its various forms. It delves into the growth of counterfeiting, its causes, and its effects on companies, consumers, and the national economy. The chapter also discusses the demand for counterfeit goods and explores different counterfeiting strategies, with a particular focus on counterfeiting activities in China.
• Chapter 4: "Remedies & Present Measures" explores the legal and regulatory frameworks for combating counterfeiting. It examines international resolutions, including the WIPO and the TRIPS Convention, as well as the role of customs authorities. The chapter also discusses strategies employed by companies like Nike to combat counterfeiting, including technical security features, brand monitoring, and collaboration with anti-counterfeiting organizations.

Keywords

The key terms and focus topics of this thesis include brand counterfeiting, eCommerce, online platforms, auction platforms, Nike, brand value, brand protection, legal remedies, international cooperation, and anti-counterfeiting strategies. These concepts are explored within the context of the challenges and opportunities presented by the digital economy.

• College: University of applied sciences, Neuss
• Grade: 1,3
• Author: Dipl.Kffr.(FH), BBA Annika Kristin Baiker (Author)
• Publication Year: 2006
• Pages: 118
• Catalog Number: V78947
• ISBN (eBook): 9783638808187
• ISBN (Book): 9783638811026
• Language: English
• Tags: Fighting, E-commerce