Tuesday, October 7, 2008

Trading Down But Still Brand Conscious

With consumers now far less willing to spend valuable disposable income with the worldwide economy in full retreat, the logical assumption is that consumers would be willing to temporarily fore-go brands and spend their hard-earned money in a much more sensible manner.

Fastcompany's October issue highlighted a piece of research which shows a creative way in which consumers are attempting to keep hold onto the status afforded to them by brands - by buying counterfeit.

It appears that although the seizures of counterfeit goods made by the U.S. government in 2007 amounted to 13000 - 1000 less than in 2006, the value of the seizures, however, has increased by 27%

The largest sufferers as a result of knock-offs are the computer software brands, with losses of around US$34 billion.