Product authentication and fingerprinting technology company Entrupy has released its first annual “State of the Fake” report. Based on data from authentications performed using Entrupy’s AI-driven technology by marketplaces, resellers and other businesses around the world, the report offers unprecedented insight into the global trade of counterfeit luxury goods, a market valued at over $450 billion according to the OECD.
The “State of the Fake” reveals trends in authentic and inauthentic luxury merchandise by brand, sales channel and geography, with comparison of data from 2017 and 2018. The results shed light on the most counterfeited brands, the factors impacting higher fake rates, and ways brands and retailers can protect their supply chain from such dilution.
“The State of the Fake report is more than insights on the current state of the luxury counterfeit market. It’s a deep dive into the consequences that counterfeiting has on the world, from a loss of consumer trust in luxury brands to criminality, and the role technology can play in minimizing these negative impacts,” said Vidyuth Srinivasan, CEO and co-founder of Entrupy.
Developed by a team of technologists, mathematicians along with industry experts, the Entrupy authentication solution uses microscopic imaging and proprietary deep learning algorithms to verify the authenticity of high-value physical goods from the world’s top 15 luxury brands. In 2018 alone, Entrupy evaluated over $50 million worth of merchandise*, keeping $5.9 million of “inauthentic” items from entering the supply chain.
“As consumer shopping habits shift to purchasing on platforms like Instagram and online resellers, consumers should be protected from counterfeits and be aware of the long-lasting consequences they have. This is only the beginning of the moment we intend to create around counterfeits and we believe our 2019 “State of the Fake” Report will shed an even brighter light on this issue for both buyers and sellers,” added Srinivasan.
*As determined by average prices on the secondary market