Consumer Electronics: How Fakes Endanger Brand Value

Fake goods provoke ripple effect consumer backlash against brands

Consumer research on the electronics industry, conducted by, highlights the damaging impact of counterfeits on consumer trust and brand value. It also serves to dispel the myth that most consumers willingly purchase fake goods. Half of respondents to a survey said that awareness of fakes makes brands less desirable overall and more than half would caution friends and family against buying the brand. Negative opinions from disgruntled consumers clearly have a damaging ripple effect that expands far beyond the original purchase.

The counterfeit consumer electronics market is a growing problem for manufacturers and retailers of genuine products as well as for loyal consumers. The consumer electronics industry covers a huge range of products from computing, mobile and smartphones, earphones, speakers, watches and beyond. Its value is estimated to be worth US$1.5 trillion by 2024, with well-known and lesser-known brands all competing at every level for customer share.


Red Points asked consumers about their reaction to purchasing fake goods by mistake.  Their responses raise clear warning bells for brands:


•  Over three-quarters would ask for a refund from the seller.
•  More than half would tell friends and family not to buy the brand.
•  More than a third would complain directly to the brand.
•  More than a quarter would complain on social media.


Access the full report from Red Points.