The Indian apparel industry, a prominent player in the global fashion market, is under siege from an ever-growing menace—counterfeiting. As the domestic readymade garment (RMG) market is projected to reach Rs 3,800 billion by 2024, growing at an impressive 18-23% CAGR, counterfeit products pose a serious threat to the sector’s success.
This growing problem not only cuts into legitimate businesses' revenues but also distorts market dynamics, erodes consumer trust, and exacerbates environmental risks. Addressing this issue is critical to safeguarding the future of the Indian apparel industry.
Estimates suggest that 30-40% of apparel sold in India is counterfeit, with fashion being one of the easiest industries to replicate. Counterfeit products flood the market due to the high consumer demand for affordable alternatives, especially through online platforms.
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Unfortunately, this results in significant damage to the brand value and reputation of genuine labels, which have spent years cultivating exclusivity and trust. These imitations dilute the market share and damage consumer perceptions of quality, leading to revenue losses and weakened brand identities.
The economic impact of counterfeiting is significant. It undermines legitimate businesses' profitability, forcing them to lower prices to compete with counterfeit goods. This price distortion
prevents companies from investing in innovation, quality, and sustainability—key pillars for competing in the global market.
Furthermore, counterfeit goods often escape taxation, depriving the government of valuable revenue that could otherwise be reinvested into the economy.
Counterfeiting also contributes to environmental degradation. Many counterfeit goods are produced in unregulated factories that disregard environmental standards, leading to pollution and unsustainable practices.
These products often end up as waste in a fast fashion culture, further exacerbating the industry's already considerable environmental footprint. This runs counter to global efforts to make the fashion industry more sustainable.
Addressing the counterfeit problem requires a multifaceted, collaborative approach. One effective strategy is the widespread adoption of advanced authentication technologies like holograms, blockchain, RFID tags, and QR codes.
These solutions allow brands to secure their supply chains and enable consumers to easily verify product authenticity. Blockchain technology, for instance, provides a decentralized, tamper-proof record of a product’s journey from manufacturer to consumer, making it much harder for counterfeiters to infiltrate the supply chain. The implementation of ISO 22383 standards ensures that these technologies meet global benchmarks
for effectiveness and security.
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Consumer education is another key factor in combating counterfeiting. Brands must raise awareness about the risks associated with counterfeit products, from poor quality to broader economic and environmental harms. Educated consumers are more likely to make informed decisions and support legitimate businesses.
Brands should take the lead in these efforts, using their platforms to inform and engage their customers about the benefits of buying authentic goods. Legal reforms are also essential to combat counterfeiting.
Stricter anti-counterfeiting laws and harsher penalties for offenders need to be implemented and enforced consistently. Given the global nature of counterfeit supply chains, international cooperation is crucial. Governments and enforcement agencies need to work together across borders to dismantle counterfeit networks
and ensure that products are intercepted before they reach consumers.
Enhanced cooperation between local authorities, customs agencies, and brand protection organizations can significantly curtail the spread of counterfeit goods.
Support from the government, particularly in helping small and medium-sized enterprises (SMEs) adopt authentication technologies, can level the playing field. Public-private partnerships can facilitate the resources and infrastructure needed to tackle counterfeiting effectively, ensuring that even smaller fashion brands can protect themselves.
The Indian apparel industry is at a critical crossroads. As the sector grows, it must confront the
counterfeit threat head-on.
By adopting advanced technologies, educating consumers, and strengthening legal frameworks, the industry can protect its revenue, preserve brand integrity,
and ensure long-term sustainability. This fight is not just about protecting businesses but about preserving the entire ecosystem of the fashion industry.
A unified, comprehensive approach will allow the Indian apparel industry to emerge stronger, more resilient, and firmly rooted in authenticity and innovation.
In conclusion, counterfeiting poses a severe threat to the economic, environmental, and reputational well-being of the Indian fashion industry.
By addressing the issue through technology, consumer awareness, and stronger legal enforcement, the industry can safeguard its future and maintain its competitive edge on the global stage.
CREDITS: Authored article contributed by Manoj Kochar, President: ASPA
