This is what emerged from the digital event promoted by Confindustria Moda in collaboration with MISE, “The impact of counterfeit goods on the fashion industry: the needs of the business world and institutional solutions”, held during the 5th annual Anti-Counterfeiting Week.
The worldwide trade of counterfeit Made in Italy goods from the Textile, Fashion, and Accessory industries has by now arrived at a value of 5.2 billion euros, causing a 1.3-billion-euro loss in revenue for Italian manufacturers and a 1.4-billion-euro loss for consumers who are misled in buying fake products instead of authentic ones. At the same time, not to be forgotten are several negative side effects including money laundering, tax evasion, illegal labour, and even the environmental sustainability of the productions, which no longer occurs.
Over the last few years, in Italy, the fight against counterfeiting has been reinforced passing from 26 million euros in seized goods in 2016 to over 52 million euros in 2018, with 25.4% of this number regarding the sector of apparel, 34.2% accessories, 16% footwear, 7.3% jewellery, and 3.3% eyewear. However, the increased number of seized goods is also an indicator of the increase in criminal activity that has found immense opportunities for development in e-commerce, which is more difficult to control, as well as in the pandemic. The main source of counterfeit goods is China, even if in recent years, it has lost shares to countries like Turkey and even Greece, which is cause for worry since Greece is an EU member country.
How can this phenomenon be contrasted? By reinforcing controls along national borders in synergy with the Customs Office and the Finance Police, with more aggressive regulations on a European and international level, but also and above all by promoting a culture of legality.
This is why the Presidents of the Associations of Confindustria Moda decided to come together under the banner of “The fight against counterfeiting starts from you” to raise awareness about the theme that has had serious repercussions on the respective sectors.
From his end, Siro Badon, President of Assocalzaturifici, underlined the multiple aspects of the phenomenon: “A constantly growing market, which on a global level passed from 338 million euros in 2016 to 460 in 2018: with a serious blow to the world of legal employment that counts fewer workers than those who are unreported. And in terms of labour there’s a serious implication, because in addition to job losses we need to take into account the tax evasion from retail and wholesale business and the missed payment of duties to entitled companies for their intellectual property and patents”.
Marino Vago, President of SMI, instead revealed how “considerable help in fighting counterfeiting could come from the Blockchain, a project that SMI already presented to MISE, as part of its opening discussion. Transparency and traceability in all phases of production would protect consumers in their purchases, allowing them to become an active part of change”.
Instead, voicing concern for consumers’ health – since counterfeit bags, shoes and accessories are often made using inadequate or toxic materials – was Gianni Russo, who was still President of the UNIC at the time of the meeting: “Italian tanneries constantly fight to have extremely strict protocols regarding the use of non-toxic materials respected, in compliance with all of the safety standards of reference. As UNIC, for years, we have been developing a collaboration with the Customs Office, which reports to us and gives us the possibility to analyse the authenticity of the collective brands we own: Vero Cuoio and Vera Pelle. A collaboration that gave rise to Legislative Decree 68/2020, which allows us to defend on a legislative level and without misinterpretations the word ‘leather’”. Although Franco Gabrielli, President of Assopellettieri, praised the work done by law enforcement, he hopes that “the Institutions continue to fight counterfeiting alongside us, operating not only through an important action of control and investigation with subsequent seizures, but also and above all through activities of prevention, so that the phenomenon can be blocked before it spreads”.
The fundamental question is accordingly that of creating a culture of legality that allows for intervention with greater force in tearing down the illegal market of counterfeit goods starting from the demand. In this field, many players, and not just Confindustria Moda and MISE, are active with awareness campaigns held in squares and at schools, while also receiving support from consumer associations. Among the guests of the event, Alessandro Mostaccio from the Consumers’ Movement reveals that fertile ground in tackling this problem lies above all in younger generations, because they already have a certain sensitivity to sustainable and ethical themes. He hopes Consumer Social Responsibility will work alongside CSR, which however will require “the consumer to be put in the right conditions to know what is behind the product and the supply chain that supports it. It’s not civilized society that has the obligation to do so, but rather the owner of this right, the company, which has all the interest in doing so”. Thus, returning to the debate is the blockchain, the only tool available today in guaranteeing the transparency and traceability of the product supply chain. A potentially formidable weapon in fighting the phenomenon of counterfeiting.
