Burberry Report by Shauni PN

Research Methods-2 The Problem of Counterfeit Products in India Submitted by: Shaunessa Nongrum, Saumakshi Mahana and Kanav Kapoor Foundation Business, Section-C Cohort: 2014-2018 Submitted to: Vasundhra Harsh Gupta and Usha Aggarwal Dated: 4th May, 2015

Acknowledgement On the very outset of this report, we would like to extend our sincere & heartfelt obligation towards all the personages who have helped us in this endeavor.Without their active guidance, help, cooperation and encouragement, we would not have made headway in the project. We are ineffably indebted to our Head of Department, Ms. Preeti Dewan Mehta for conscientious guidance and encouragement to accomplish this assignment. We are extremely thankful and pay our gratitude to our faculty Ms. Vasundhra Harsh Gupta and Ms. Usha Aggarwal for their valuable guidance and support on completion of this project in its presently. We also acknowledge with a deep sense of reverence, our gratitude towards our parents and members of our family, who have always supported us morally as well as economically. At last but not least, gratitude goes to all of our friends who directly or indirectly helped us to complete this project report.

Table of Contents Serial No.

Topic

Page No.

Background Study

Marketing Mix

SWOT Analysis in India

Competitor Analysis in India

Literature Review

Research Methodology

Data Analysis

Conclusion

References

Annexure

1. Background Study 1.1 About the Brand Founded: 1856 Employees: 2,500 Sales: £230 million ($366.1 million)(2000) Burberry Ltd. is a manufacturer and marketer of men’s, women’s, and children’s apparel, as well as accessories and fragrances. The Burberry name is virtually synonymous with the tan gabardine raincoat pioneered by the company more than 145 years ago. In 2000, Burberry operated 58 company-owned stores, and its products were also found in department and specialty stores around the world. In 1999, the firm launched the Prorsum designer collection as part of its efforts to reinvent Burberry’s luxury brand status. An icon of classic clothing, Burberry has utilized licensing and brand extensions to appeal to a younger generation of fashion-conscious customers. The company is a subsidiary of the United Kingdom’s Great Universal Stores pic, the very closely held $9 billion credit reporting, mail-order, and retail apparel conglomerate. Burberry was awarded a Royal Warrant by Queen Elizabeth II, and was also honored by the Prince of Wales. By 1996, it had accumulated a record six Queens’s Awards for Export Achievement and ranked among Great Britain’s leading clothing exporters. 4

  

Burberry operates under three brands: Burberry Prorsum – The most fashion forward collection, centered around runway shows, providing the design inspiration for the brand Burberry London – The tailored collection, typically what a customer wears on weekdays for work Burberry Brit – The most casual collection, typically worn on weekends.

(From left to right)Burberry Prorsum, Burberry London and Burberry Brit

1.2 History The brand was founded by the 21-year old Thomas Burberry in the year 1856. Burberry was the original name, but then the company soon switched to using the name ‘Burberrys’, after many customers from around the world began calling it “Burberrys of London". This name is still visible on many older Burberry products. Burberry became known as an 'emporium' with an increased focus on the development of outdoor wear for local residents and visiting sportsmen who frequented the store. In 1891, Thomas Burberry opened his first shop in London at the Haymarket, now the site of Burberry's corporate headquarters. The Burberry Equestrian Knight logo was developed and registered as a trademark in 1904. This decade also saw the opening of stores in Paris and New York.

Thomas Burberry; Founder of Burberry

The brand built its name during the second half of the 19th century, and throughout the 20th century it cemented its legacy. The ‘trench coat’ was developed in First World War and the Burberry check, registered as a trademark, was introduced as a lining to the trench coat in 1924. Soon the red, camel, black and white check became synonymous with Burberry. Today, the brand is an internationally distributed luxury house.

Burberry’s trademark check

1.3 Target Audience Despite originally being designed for men, Burberry has a female dominated target audience; they would also have a high disposable income. They are most likely to be around 26 years old and over, with a good career and no children. However, the brand also have their own children’s wear range which means that they may appeal to some parents, although these will probably be more successful business people and those from wealthy backgrounds. Burberry’s main garments such as coats and dresses have an extremely exclusive and high-end appeal. These would appeal mainly to celebrities and very wealthy customers. Next there are items such as bags and shoes – despite still being very expensive, they are more accessible and affordable than the other garments, which broadens the brand’s target audience. As well as this, the Burberry fragrances are very much in ordinary people’s price range, meaning that the brand does appeal to everyone in some way. The brand’s marketing strategy is such that it attracts everyone’s attention. Despite being a luxury brand they have kept their products in an ordinary range which makes it quite accessible and affordable to everyone. Burberry uses more of a viral marketing approach. The brand is not seen in TV advertisements or billboards rather in banners on fashion websites or in their magazines. They rely hugely on celebrity endorsements. Their promoting strategy is also quite strong. Since they are always appearing in some or the other fashion weeks or hosting their own shows to showcase newlines, they are in media, always. Since Burberry is considered among the top ten luxury brands, it has numerous competitors which differ through its categories and price range as or diffusion lines. In 1966,its firm became a wholly owned subsidiary of Great Universal Stores.

1.4 Marketing mix: Price, Place, Product and Promotion 1.4.1 Pricing Strategy: Burberry uses competition pricing – the brand prices their goods at a similar price to its competitors. For instance, it has a similar price range to other big labels such as Louis Vuitton. This gives a psychological effect on Burberry’s customers; if the brand had a lower price range then they may believe the quality isn’t as good as the competitors. If Burberry began lowering its prices it may leave people wondering why; if something had happened to make it lose its value. Despite it being extremely expensive, 6

the exclusivity and high-end feel of buying something from a designer such as Burberry is what people are after. The pricing suggests quality and desirability, which is what its customers are after. In India, the prices of Burberry products are rather high with the signature Trench Coat being one lakh rupees approximately. 1.4.2 Place/Distribution

A few of Burberry’s flagship stores in (from left to right): Shanghai, India, London and Paris

Burberry owns 475 stores in 48 countries, which are all located in largely populated cities where they will gain most custom. For instance, there are eleven stores in London alone. These are ideal locations due to the type of people that populate the areas; a huge number of them fall into Burberry’s target audience. By opening stores in wealthy cities, especially those which are huge tourist attractions, Burberry have the opportunity to make more profit and appeal to the right audience. If there were stores in smaller, less wealthy cities, they would probably not get as much custom, and the brand may also lose its sense of exclusivity and expense. The distribution of stores is very much psychological, and gives people all the right impressions of the brand. Burberry celebrates four stores in India in style. 1.4.3 Products Burberry produces the products both men’s and women’s wear, that including coats, shirts, bottoms dresses and shoes. Children’s wear was eventually introduced and in 2013, Romeo Beckham starred in an advertisement to promote Burberry’s children’s wear. An assorted array of Burberry products

Additionally, cosmetics and accessories, such as scarves, handbags, sunglasses, watches, perfumes and umbrellas also eventually came about, adding more to the brand’s merchandise and variety. The Indian Burberry stores boast of a wide range of merchandise as well.

1.4.5 Promotion Burberry has, since the start promoted itself through various ways, those of which include fashion shows, advertisements and an assorted array of campaigns each highlighting it’s work and designs to it’s interested buyers.

Burberry’s Spring Summer 2014 Fashion show

Burberry realized in 2009 that social media engagement needed to play a key role in its marketing efforts and allocated resources accordingly. Its first major digital campaign, the Art of the Trench, invited Burberry’s loyal following of trench coat enthusiasts to post their selfies to a campaign site that leveraged social media sharing and partnerships with major fashion bloggers. The campaign allowed viewers to vote and comment on their favourite images share them with friends, and to click through from the usergenerated content directly to an e-commerce site to purchase items that caught their eye. The campaign drove growth of Burberry’s Facebook fanbase to more than one million (in 2009), and today it sits at a whopping 16 million.

Burberry’s ‘Art of the Trench’ Campaign

As more and more people search for — and purchase — fashion on their mobile devices, integrating online promotions with mobile is crucial, and Burberry has once again been ahead of the pack. Burberry launched its mobile site in 2011 and didn’t stop there. It has also outfitted in-store salespeople with iPads, and has created a physical manifestation of its online environment where customers can engage with the products both online and in-person, customize their apparel and try on RFID-tagged items in front of a mirror that Burberry’s mobile app

projects them onto video. It’s a true melding of online and real-life worlds and has resulted in an 18-percent uptick in sales in the first quarter of 2013, attributed largely in part to its innovative marketing strategies.

1.5 SWOT Analysis In India

1.5.1 Strengths 1. Well established brand 2. One of the biggest fashion houses in India offering clothes, perfumes, beauty products 3. Distinctive check – instantly class/those who aren’t as wealthy and recognizable

1.5.2 Weaknesses 1. 2. 3. 4.

Poorly promoted High price point causing high hooliganism and association with desirability ‘chavs’ Not accessible to the working The brand can diversify into youth everyday fashion as currently the apparels have too much of English appeal. This is a huge con in India because of it’s ethnic and cultural background.

1.5.3 Opportunities 1. Could open more stores 2. Sponsor more events in cities 3. More celebrity endorsements 4. Better promotions

1.5.4 Threats Burberry is considered among the top ten luxury brands in India. Burberry's competitors differ through its categories and price ranges or diffusion lines. Burberry is positioned between Polo Ralph Lauren and Armani considering apparel and Coach and Gucci for Accessories. Giorgio Armani, Coach, Donna Karan, Escada, Gucci, Max Mara, Polo Ralph Lauren, Tod's, LVMH, Prada, Chanel are a few among Burberry's competitors.

1.6 Competitor Analysis In India Burberry has itâ&#x20AC;&#x2122;s fair share of competitors even in India, those of which include primarily Gucci,Armani,Louis Vuitton and Dolce&Gabbana

1.6.1 Giorgio Armani:

The Armani menâ&#x20AC;&#x2122;s line displaying sharp, sophisticated designs.

Armani is an Italian fashion house founded by Giorgio Armani which designs, manufactures, distributes and retails haute couture, ready-to-wear, leather goods, shoes, watches, jewelry, accessories, eyewear, cosmetics and home interiors. The brand markets these products under several labels,from the most expensive to the most accessible: Armani Prive, Giorgio Armani, Emporio Armani, Armani Collezioni, AJ Armani Jeans, AX Armani Exchange. Wearing Armani became a symbol of success for many business professionals. They especially sought out the brand's "power suits." The wide-shouldered power suit that was a trademark in the Eighties has been 10

softened into a more subtle, practical silhouette and Armani's collections these days are elegant and understated. Armani serves as a strong threat towards Burberry because of its unique style and cut which differentiates it’s wearer from the crowd. Additionally, the major feature of Giorgio Armani clothing and apparels is that a majority of them are hand stitched. Moreover, Armani caters not only to formal wear but to designing uniforms for various international sports teams and players as well. This makes it’s variety much wider as compared to Burberry.

1.6.2 Louis Vuitton & Gucci:



  

The two major competitors for Burberry are Louis Vuitton and Gucci. The reasons for specifying these competitors are: Louis Vuitton is one of the first and most famous luxury brand all over the world. It is best known for quality and style. Then we have Gucci which is again one of the world’s pre-eminent luxury brands, recognized for its fashion,innovation and impeccable Italian craftsmanship. Since they are considered as one of the best luxury brands, they are a tough competition to Burberry. Louis Vuitton took the highest spot for a luxury fashion house at 201 on the Global 500 list with a current value of $4.9 billion last year. Gucci is said to be worth $3.4 billion whereas Burberry took spot 371 at a $3 billion value. Gucci and Louis Vuitton are very old brands since its store opened in 1921 and 1854 respectively whereas Burberry opened in 1856. Both the brands are among the most recognizable and wealthy brands in the world today and are the ambassadors of their own culture. Also Gucci and Louis Vuitton recorded the most important “brand value” growth during the last 7 years.

Louis Vuitton (left) and Gucci (right) campaigns

1.7 Primary Research



Our Primary Research was composed of a visit to the Burberry Prorsum showroom at Select Citywalk, Saket and the Burberry flagship store in DLF Emporio,Vasant Kunj in New Delhi. From the Primary Research, several problems associated with Burberry were observed: With the coming of the online store, there has been a considerable decrease in the number Burberry customers who visit the showrooms and this in turn results in bad business for the brand.

The Burberry Online Store



Being one of the copied brands in India, people are buying the fake products which are also much cheaper, than the authentic products themselves.



Recently, to keep up with the growing fashion trends that buyers are more interested in buying, Burberry is trying to sway away from it’s path to become the fashionistas' favourite once more. This is undoubtedly, a difficult balancing act, one only a handful of labels have been able to achieve.

Burberryâ&#x20AC;&#x2122;s reinvented classic trends

1.8 Research Questions 1. What causes the consumers to buy fake products over real products? 2. Is the poor promotion of the brand the reason why customers are not buying original products? 3. How can Burberry promote its authentic products?

1.8.1 Research Objective To understand the concept of consumerâ&#x20AC;&#x2122;s preference towards counterfeits of luxury brands.

1.8.2 Sub Objective To study the challenges faced by Burberry caused by fake products.

2. Literature Review The Literature Review explains the basic meaning of a consumer, stresses on the consumer’s behavioral patterns towards normal brands and luxury brands. It further looks into Counterfeit products, their effects on luxury brands, and the reasons why it is attracting so many customers.

2.1 Consumer; Meaning and Definition An individual who buys products or services for personal use and not for manufacture or resale. A consumer is someone who can make the decision whether or not to purchase an item at the store, and someone who can be influenced by marketing and advertisements. Any time someone goes to a store and purchases a toy, shirt, beverage, or anything else, they are making that decision as a consumer.

2.2 Consumer Behavior The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how      

The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products, and retailers); The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); The behaviour of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. According to Perner,L (2003) the definition of consumer behaviour is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society."

2.3 Consumer Behavior towards Brands When we talk about consumer behavior towards store brand, we usually mean the willingness/proneness a consumer has towards a store brand or his real purchase action. So results in this paper contain both proneness and real purchasing a customer has towards store brand. As the researchers have shown, there are four out of 22 total factors that require more attention than others do when a company has limited resources to improve. They are:

(1) Customersâ&#x20AC;&#x2122; familiarity with store brand. Letâ&#x20AC;&#x2122;s roughly guess that if a store gets 3 more customers familiar with its brand, one out of them will make purchases in this store. (2) Price consciousness. It is the intrinsic attribute of customers. As the research result shows, the more a customer is price-conscious, the more frequently he will purchase store brand product. (3) Quality consciousness. It is another intrinsic attribute of the people. As it is a common knowledge that store brands have low quality than national brands, when a customer cares for quality more, he will have less possibility to buy store brand product. (4) Perceived quality of store brands. When customer perceive and believe that the quality of store brand products is good, they will have more chances to purchase store brand rather than national brand products.

2.4 The Meaning of a Brand A brand is a name given to a product and/or service such that it takes on an identity by itself. In today's marketplace teeming with thousands of products and services, all of which are being rapidly commoditized, a brand stands out from the clutter and attracts attention. A brand name can create and stand for loyalty, trust, faith, premium ness or mass-market appeal, depending on how the brand is marketed, advertised and promoted. A brand differentiates a product from similar other products and enables it to charge a higher premium, in return for a clear identity and greater faith in its function. A brand is also likely to survive longer than just an undifferentiated product. A brand is akin to a living being: it has an identity and personality, name, culture, vision, emotion and intelligence. All these are conferred by the owner of the brand and needs to be continuously looked at to keep the brand relevant to the target it intends to sell to.

2.5 Luxury Brands Luxury brands are basically products which are not necessary but which tend to make life more pleasant for the consumer. In contrast with necessity goods, luxury goods are typically more costly and are often bought by individuals that have a higher disposable income or greater accumulated wealth than the average.

2.6 Consumer Behavior Towards Luxury Brands Many people buy luxury products because they see it as a status symbol. They want to be accepted as a 15

part of a certain group. Other common attitudes towards luxury brands are that people see them as a guarantee for quality. It assures them that what they are buying is of excellent quality. Srichan Sriviraj et al. (2007) has studied the consumer behavior of young consumers towards purchase of luxury products in three countries namely the United Kingdom, Thailand and China. The research shows that UK and Thai respondents do not purchase products to show status or for possessive reasons; however, some Chinese respondents have bought luxury products to achieve status in society. There is hardly any relation of gender and purchase of luxury brand products. In terms of motivation, this research has suggested that the Snob, Perfectionist, and Hedonic effect motivate UK and Thai consumers into purchasing luxury products. Luxury consumers in China buy luxury brands as they are motivated by the Hedonic and Perfectionist value of luxury brands.

2.7 Counterfeit Products 2.7.1 Introduction Counterfeiting is a federal and state crime, involving the manufacturing or distribution of goods under someone elseâ&#x20AC;&#x2122;s name, and without their permission. Counterfeit goods are generally made from lower quality components, in an attempt to sell a cheap imitation of similar goods produced by brands consumers know and trust. The production and sale of counterfeit goods is a global, multi-billion dollar problem and one that has serious economic and health ramifications for Governments, businesses and consumers. Counterfeiting is everywhere - it can affect what we eat, what we watch, what medicines we take and what we wear - and all too often the link between fake goods and transnational organized crime is overlooked in the search for knock-offs at bargain-basement prices.

2.7.2 The Kinds of Counterfeit Products: All counterfeit products are not made for convincing the buyer that he or she buys the original and trademarked brand i.e. there are two types of counterfeit products; deceptive and non-deceptive counterfeits . Non-deceptive counterfeits are all situations when the customer has been aware of the origin and the inferior quality of the product and deceptive counterfeits include scenarios when the customer act in faith and honest and do not know that the purchased product is a copy and can be considered as victims of counterfeiting. In this thesis it is non-deceptive counterfeits that are of interest and those are the type of counterfeits that is considered from now on when mentioning counterfeit products.

2.7.3 Consumer Behavior towards Counterfeits Fake products represents a long established and extensive global industry. The phenomenon varies from 16

breaches of product patents in industrial and technical products, through illegal reproductions of copyright entertainment material to fakes of branded luxury lines. And this market is growing. European and North American customs authorities have reported phenomenal growth in the number of counterfeits seized in recent years (though this may also reflect greater efforts to stamp out the counterfeit trade). Between 2001 and 2005, for example, seizures of counterfeit products by US Customs more than doubled. Asia is the principal source of the world's fake brands market with China the largest source economy. Official estimates suggest that counterfeit products account for 15%-20% of products made in China, representing 8% of China's US$2.6 trillion GDP. Fake brands clearly supply a basic demand for low cost items that the consumer can associate with less affordable, scarce premier brands. However, psychologists have looked far more deeply into this area of consumer behaviour and a wealth of research has been published. A very basic finding is that despite the low price factor, fake brands are regularly bought by relatively high income households in developed countries. A few other points to note about fake brand buying: 

Fake brands are more affordable, often with a huge price difference to the original brand;



Fake brands can have far wider availability than the real, exclusive brand – especially in the low income countries where they are made;



Buying situations such as holidays favour fake purchases, as consumers are away from their normal social/legal restraints;



Counterfeits can reflect the prestige of exotic travel (to fake buying centres) and provide an authentication of the travel experience;



Many consumers see fake brands as fun and a form of popularising the real brand;



Consumers sometimes believe they are contributing to the local economy when they purchase fake brands.

2.7.4 Preventive Measures: There are various laws and legislation that try to stop counterfeit products and there sales. The government has taken initiative and developed websites where you can report the sale of counterfeit products. While there are measures taken by the government and the companies themselves, it is very hard to completely eliminate counterfeiting, it can only be reduced. This is because a large number of people are willing to buy and sell counterfeit products and its very hard to track all the sellers of these products.

2.8 Knowledge Gap The Literature Review has hence elaborated on the nuisance that Counterfeit products are imposing on the existing brands of today. Burberry is also facing the major problem of fake products, reducing the number of its customers and a considerable drop in the sale of its authentic merchandise.

2.8.1 The Effects Counterfeits Have on the Authentic Brands and Stores Counterfeiting is considered as the crime of the 21st century. A highly affected market of counterfeits is the market of luxury branded goods. These goods are bought by consumers who want to express their social class and belonging by being admired, recognized and accepted by other people. The counterfeits of luxury brands that flourish on the market makes it possible for anyone to be a luxury brand user which is against the core of luxury brand, which strives for a low distribution to keep the demand high to be able to keep the consumer associations of luxury brands. Counterfeiting is a real inhibitor to luxury industry volume growth. It distorts brand loyalty and destroys brand equity , and results in important revenue losses . Counterfeiting affects competition among brand owners , develops underground economies and impacts hundreds of thousands of jobs. Health and security of consumer are also threatened . It is clear that counterfeiting is a significant source of trouble for market economies . Luxury brands are prime counterfeit targets because of their popularity with consumers . Luxury industries invest heavily in their brands with the intention of increasing the popularity, prestige, and exclusive brand image of their products, all the while limiting accessibility. It is paradoxical that the strong disparity between popularity and accessibility allows the progression of counterfeiting, and thus the growth of the luxury goods counterfeit market . There are many instances of the effects fake products are having on brands. French luxury house Hermes and Indian leather goods retailer Da Milano are locked in a legal battle over the similarity of some of the latter's handbags to Hermes' Birkin range. Hermes has got an injunction order from the Delhi High Court to stop Da Milano from selling handbags "identical in shape and design" to the popular Birkin range. Its lawyer claims there is no similarity between its handbag, priced at Rs 10,000, and Birkin, priced upwards of Rs 6.5 lakh, and that Hermes initiated the action out of "business jealousy and rivalry". Whoever proves right in this case, the bigger picture is that counterfeit, fake and imitation luxury products are increasingly bothering the likes of Hermes, Louis Vuitton (LV), Dior, Gucci and Burberry in the country. Law firm Anand & Anand, which represents Hermes in the case against Da Milano, is fighting another case on behalf of French brand Louis Vuitton against a little-known retailer, which is allegedly selling "counterfeit products" it bought from an auction held by Customs authorities. 18

Popular brands such as Gucci, Police, Louis Vuitton (mainly purses), Bvlgari diamonds, Rolex watches and Prada dresses are counterfeited and sold widely in India. Many such products come from China. That's not all - one can find luxury brands even in product categories not manufactured by the original brands. One such example is Harley Davidson deodorants. Not just foreign brands, expensive Indian designer wear too is being copied, mass produced and sold at price points and quality much lower than the originals. Kimaya, a multi-brand retail chain that sells designer wear across India, has also filed a case against Kolkata-based retailer 'Simaya', which sells copies of its designer wear.

3. Research Methodology 3.1 Research Objective To understand the concept of consumer’s preference towards counterfeits of luxury brands, especially Burberry in India.

3.2 Research Design: Exploratory Research: Our research is Exploratory because we are finding out the reasons as to why customers are buying fake products instead of authentic ones.

3.3 Data Collection Methods: Primary and Secondary sources

3.4 Data Collection Tools:  

Primary- Questionnaires and interviews. Secondary- Online journals, articles, magazines and books.

3.5 Sample Design 3.5.1 Sample Frame Consumers preferring luxury products

3.5.2 Sampling Unit: Consumers preferring luxury products in Delhi

3.5.3 Sample size: 100 respondents

3.5.4 Method of Sampling: Probability: The method of sampling is Stratified Random Sampling because every member of the sampling unit each had a known and equal chance of being selected for the study.

3.5.5 Sample: Consumers preferring luxury products in Delhi between age group of 18 years to 50 years.

3.5.6 Data analysis: The data was analysed by Annova,Chi Square and Mean. 20

4. Data Analysis

. ď&#x201A;ˇ

55%

15%

Majority of the respondents fall within the 20-25 years age group

25%

15% ď&#x201A;ˇ

Most of the respondents are female.

85%

ď&#x201A;ˇ A cheaper range of

15%

products is the solution to solving the problem of counterfeits according to the majority of the respondents

20%

25% 40%

ď&#x201A;ˇ

Counterfeit products are available to most of the respondents

Chi Square age of the respondents

Total

20-25 26-30 31-35 36 and above Count % within ability to distinguish between real Yes

% within age of the

% of Total

% within ability to

products

distinguish between real

65.2

17.4

4.3%

35.7

15.4

15.0

4.0%

13.0% 100.0 %

4.8%

27.3%

23.0 %

1.0%

3.0%

23.0 %

39.6

30.2

20.8

9.4% 100.0

50.0

61.5

52.4

21.0

16.0

11.0

25.0

37.5

12.5% 100.0

14.3

23.1

42.9

6.0%

9.0%

sometim and fake products es

% within age of the respondents % of Total Count % within ability to distinguish between real

45.5%

53.0 %

5.0%

53.0 %

and fake products % within age of the respondents % of Total

27.3%

24.0 %

3.0%

24.0 %

Count % within ability to distinguish between real Total

Count

between real and fake

and fake products respondents

ability to distinguish

100

42.0

26.0

21.0

11.0% 100.0

and fake products % within age of the respondents % of Total

100.0 100.0 100.0 100.0% 100.0 %

42.0

26.0

21.0

11.0% 100.0

ability to distinguish between real and fake products * sex Cross tabulation sex male Count

30.4%

69.6%

100.0%

20.6%

24.2%

23.0%

7.0%

16.0%

23.0%

35.8%

64.2%

100.0%

% within sex

55.9%

51.5%

53.0%

% of Total

19.0%

34.0%

53.0%

33.3%

66.7%

100.0%

23.5%

24.2%

24.0%

8.0%

16.0%

24.0%

100

34.0%

66.0%

100.0%

34.0%

66.0%

100.0%

real and fake products % within sex % of Total Count

ability to distinguish between real and fake products

% within ability to distinguish between sometimes

real and fake products

Count % within ability to distinguish between no

real and fake products % within sex % of Total Count % within ability to distinguish between

Total

female 7

% within ability to distinguish between Yes

Total

real and fake products % within sex % of Total

Chi Square Ability to distinguish a fake product from the real one: Based on Age, Gender and Marital Status, all the age groups, male and female as well as single and married respondents are able to distinguish a fake product from a real one only sometimes because some of the fake products tend to look as real as the authentic ones.

Chi Square reasons for buying fakes * age of the respondents Cross tabulation age of the respondents 20-25

26-30

31-35

Total 36 and above

Count % within reasons for buying the quality is close to

fakes

original

% within age of the

47.1%

29.4%

17.6%

5.9%

100.0%

19.0%

19.2%

14.3%

9.1%

17.0%

8.0%

5.0%

3.0%

1.0%

17.0%

51.6%

16.1%

19.4%

12.9%

100.0%

38.1%

19.2%

28.6%

36.4%

31.0%

16.0%

5.0%

6.0%

4.0%

31.0%

40.7%

25.9%

18.5%

14.8%

100.0%

26.2%

26.9%

23.8%

36.4%

27.0%

11.0%

7.0%

5.0%

4.0%

27.0%

28.0%

36.0%

28.0%

8.0%

100.0%

16.7%

34.6%

33.3%

18.2%

25.0%

7.0%

9.0%

7.0%

2.0%

25.0%

100

42.0%

26.0%

21.0%

11.0%

100.0%

42.0%

26.0%

21.0%

11.0%

100.0%

respondents % of Total Count % within reasons for buying the price is considerably

fakes

lower

% within age of the respondents

reasons for buying

% of Total

fakes

Count % within reasons for buying brand image is high

fakes % within age of the respondents % of Total Count % within reasons for buying

country of origin is

fakes

prestigious

% within age of the respondents % of Total Count % within reasons for buying

Total

fakes % within age of the respondents % of Total

sex reasons for buying fakes * marital status Crosstabulation

35.3%

64.7%

100.0%

% within sex

17.6%

16.7%

17.0%

% of Total

6.0%

11.0%

17.0%

29.0%

71.0%

100.0%

% within sex

26.5%

33.3%

31.0%

% of Total

9.0%

22.0%

31.0%

29.6%

70.4%

100.0%

% within sex

23.5%

28.8%

27.0%

% of Total

8.0%

19.0%

27.0%

44.0%

56.0%

100.0%

% within sex

32.4%

21.2%

25.0%

% of Total

11.0%

14.0%

25.0%

100

34.0%

66.0%

100.0%

% within sex

100.0%

% of Total

34.0%

66.0%

100.0%

% within reasons for buying fakes

Count the price is considerably

female 6

Count

the quality is close to original

male

Total

% within reasons for buying fakes

lower reasons for buying fakes

Count % within reasons for buying fakes

brand image is high

Count % within reasons for buying fakes

country of origin is prestigious

Count % within reasons for buying Total

fakes

marital status single Count the quality is close to original

% within reasons for buying fakes

64.7%

35.3%

100.0%

% within marital status

18.0%

15.4%

17.0%

% of Total

11.0%

6.0%

17.0%

% within reasons for buying fakes

61.3%

38.7%

100.0%

% within marital status

31.1%

30.8%

31.0%

% of Total

19.0%

12.0%

31.0%

% within reasons for buying fakes

63.0%

37.0%

100.0%

% within marital status

27.9%

25.6%

27.0%

% of Total

17.0%

10.0%

27.0%

% within reasons for buying fakes

56.0%

44.0%

100.0%

% within marital status

23.0%

28.2%

25.0%

% of Total

14.0%

11.0%

25.0%

100

% within reasons for buying fakes

61.0%

39.0%

100.0%

% within marital status

100.0%

% of Total

61.0%

39.0%

100.0%

reasons for buying fakes

Count brand image is high

Count country of origin is prestigious

Count Total

married 11

Count the price is considerably lower

Total

Reasons for buying Fake Products: 1. Based on age: Respondents belonging to the 20-25 age group buy fake products because of the considerably low price as they havenâ&#x20AC;&#x2122;t begun to earn as much as needed to buy the real luxury products. The respondents of age groups 26-30 and 31-35 purchase fakes if the country of the product origin is high because they feel that the product is of good quality. The last age group,36-40 purchase fake items because of the low prices and high brand image because they do not feel the need to buy the expensive products if they can get the same one at a cheaper price. They also believe in buying such products if the brand they are buying from has a good reputation. 2. Based on gender and marital status: Male and female as well as single and married respondents buy fake products only when the price is low because of the cheaper price.

Chi Square buying fake is appreciable * age of the respondents Cross tabulation age of the respondents 20-25

26-30

31-35

Total

36 and above

strongly agree

agree

buying fake is appreciable

neutral

disagree

strongly disagree

Total

Count % within buying fake is appreciable % within age of the respondents % of Total Count % within buying fake is appreciable % within age of the respondents % of Total Count % within buying fake is appreciable % within age of the respondents % of Total Count % within buying fake is appreciable % within age of the respondents % of Total Count % within buying fake is appreciable % within age of the respondents % of Total Count % within buying fake is appreciable % within age of the respondents % of Total

6 40.0%

5 33.3%

2 13.3%

14.3%

19.2%

9.5%

18.2%

6.0% 11 47.8%

5.0% 6 26.1%

2.0% 3 13.0%

26.2%

23.1%

14.3%

27.3%

11.0% 14 43.8%

6.0% 7 21.9%

3.0% 8 25.0%

3.0% 3 9.4%

33.3%

26.9%

38.1%

27.3%

14.0% 8 44.4%

7.0% 4 22.2%

8.0% 4 22.2%

3.0% 2 11.1%

19.0%

15.4%

19.0%

18.2%

8.0% 3 25.0%

4.0% 4 33.3%

2.0% 1 8.3%

7.1%

15.4%

19.0%

9.1%

3.0% 42 42.0%

4.0% 26 26.0%

4.0% 21 21.0%

1.0% 11 11.0%

100.0 % 42.0%

100.0 % 26.0%

100.0 % 21.0%

100.0% 11.0%

15 100.0 % 15.0% 15.0% 23 100.0 % 23.0% 23.0% 32 100.0 % 32.0% 32.0% 18 100.0 % 18.0% 18.0% 12 100.0 % 12.0% 12.0% 100 100.0 % 100.0 % 100.0 %

buying fake is appreciable * marital status Cross tabulation marital status single Count

married 8

53.3%

46.7%

100.0%

% within marital status

13.1%

17.9%

15.0%

% of Total

8.0%

7.0%

15.0%

56.5%

43.5%

100.0%

% within marital status

21.3%

25.6%

23.0%

% of Total

13.0%

10.0%

23.0%

62.5%

37.5%

100.0%

% within marital status

32.8%

30.8%

32.0%

% of Total

20.0%

12.0%

32.0%

55.6%

44.4%

100.0%

% within marital status

16.4%

20.5%

18.0%

% of Total

10.0%

8.0%

18.0%

83.3%

16.7%

100.0%

% within marital status

16.4%

5.1%

12.0%

% of Total

10.0%

2.0%

12.0%

100

61.0%

39.0%

100.0%

% within marital status

100.0%

% of Total

61.0%

39.0%

100.0%

% within buying fake is appreciable

strongly agree

Count % within buying fake is appreciable

agree

Count % within buying fake is buying fake is appreciable

Total

appreciable

neutral

Count % within buying fake is appreciable

disagree

Count % within buying fake is appreciable

strongly disagree

Count

Total

% within buying fake is appreciable

buying fake is appreciable * sex Cross tabulation sex male Count

Total female

% within buying fake is appreciable

40.0%

60.0%

100.0%

% within sex

17.6%

13.6%

15.0%

% of Total

6.0%

9.0%

15.0%

% within buying fake is appreciable

26.1%

73.9%

100.0%

% within sex

17.6%

25.8%

23.0%

% of Total

6.0%

17.0%

23.0%

% within buying fake is appreciable

34.4%

65.6%

100.0%

% within sex

32.4%

31.8%

32.0%

% of Total

11.0%

21.0%

32.0%

% within buying fake is appreciable

33.3%

66.7%

100.0%

% within sex

17.6%

18.2%

18.0%

% of Total

6.0%

12.0%

18.0%

% within buying fake is appreciable

41.7%

58.3%

100.0%

% within sex

14.7%

10.6%

12.0%

% of Total

5.0%

7.0%

12.0%

100

% within buying fake is appreciable

34.0%

66.0%

100.0%

% within sex

100.0%

% of Total

34.0%

66.0%

100.0%

strongly agree

Count agree

Count buying fake is appreciable

neutral

Count disagree

Count strongly disagree

Count Total

Appreciation of Buying Fake Products Based on Age, Gender and Marital Status: Respondents of all age groups, genders and single and married respondents are neutral when it comes to buying fake products because they believe that they can get satisfaction from both fake and authentic products.

One Way Annova

Descriptives N

price

quality

exclusiveness

service

variety

Mean

Std. Deviation

20-25

2.4286

1.15067

26-30

2.8846

1.33647

31-35

2.8095

1.12335

36 and above

2.9091

1.75810

Total

100

2.6800

1.27033

20-25

2.4524

1.15193

26-30

2.9615

1.39945

31-35

2.7619

.99523

36 and above

3.0000

1.26491

Total

100

2.7100

1.20851

20-25

2.9762

1.47314

26-30

2.6538

1.23101

31-35

3.3333

1.27802

36 and above

3.0909

1.30035

Total

100

2.9800

1.35572

20-25

3.0238

1.11504

26-30

2.9615

1.14824

31-35

2.8095

1.32737

36 and above

2.9091

1.30035

Total

100

2.9500

1.17529

20-25

3.0476

.98655

26-30

3.0769

1.38342

31-35

3.3333

1.06458

36 and above

3.1818

1.07872

Total

100

3.1300

1.11604

One Way ANNOVA Based on Age: • The age group,20-25 years are most satisfied with Burberry’s price range • The age group 20-25 years are most satisfied with the quality of Burberry products • The respondents falling under the 26-30 years are the most satisfied with Burberry’s exclusiveness • The 31-35 years age group is most satisfied with the services Burberry offers. • The age group of 20-25 years is most satisfied with the variety of products available at Burberry.

5. Conclusion 1. The respondents of age groups 26-30 and 31-35 purchase fakes if the country of the product origin is high because they feel that the product is of good quality. 2. Male and female respondents as well as single and married ones buy premium branded products because the prices are comparatively lower than luxury brands. 3. All respondents are neutral when it comes to buying fake products because they believe that they can get satisfaction from both fake and authentic products. 4. Based on the findings, strong legal actions can prevent the counterfeit market from growing.

6. References: 

Burberryplc.com (2015). Company History [online] Available at: http://www.burberryplc.com/about_burberry/company_history [Accessed 29 Jan. 2015].



EAT LOVE SAVOR, (2012). The History, Heritage and Commitment of the Luxury Brand, Burberry EAT LOVE SAVOR Luxury. [online] Available at: http://www.eatlovesavor.com/the-history-heritage-and-quality-ofthe-luxury-brand-burberry/ [Accessed 29 Jan. 2015].



Mail Online, (2015). Burberry's shaken off its ‘chav’ image to become the fashionistas' favourite. [online] Available at: http://www.dailymail.co.uk/femail/article-1023460/Burberrys-shaken-chav-imagefashionistas-favourite-more.html [Accessed 29 Jan. 2015]



Slideshare.net, (2015). Luxury Goods in Emerging Markets 2013 - Competitive Analysis. [online] Available at: http://www.slideshare.net/vy1230/luxury-goods-in-emerging-markets-2013-brand analysis [Accessed 29 Jan. 2015]. Slideshare.net (2015). Marketing Management. [online] Available at: http://www.slideshare.net/JustinMoseley1/marketing-managment-group-5 [Accessed 31 Jan. 2015].



Carr, T (2015). Louis Vuitton, BMW tower over competitors for global brand recognition: study - Luxury Daily - Research. [online] Luxurydaily.com. Available at: http://www.luxurydaily.com/consumers-won’tbudge-from-luxury-brands-study/ [Accessed 31 Jan. 2015].



Gucci.com,(2015).Gucci - about Gucci. [online] Available at: http://www.gucci.com/us/about/show [Accessed 5 Feb. 2015].



Ukessays.com, (2015). Burberrys Market Position And Its Competitors Marketing Essay. [online] Available at: http://www.ukessays.com/essays/marketing/burberrys-market-position-and-its-competitorsmarketing-essay.php [Accessed 29 Jan. 2015].



Biography.com, (2015). [online] Available at: http://www.biography.com/people/louis-vuitton17112264#synopsis [Accessed 5 Feb. 2015].



Giorgio Armani (2015).TheBiography.com website. Available from: http://www.biography.com/people/giorgio-armani-9188652 [Accessed 5 Feb 2015].

7. Annexure Questionnaire We are students of Pearl Academy conducting a research study based on a consumerâ&#x20AC;&#x2122;s preference towards counterfeit products. We ensure that your participation and information provided in this questionnaire will remain confidential. Each question has a few choices. Kindly tick the option which you feel is most appropriate. 1. Age o o o o

20-25 years 26-30 years 31-35 years 36 years and above 2. Marital Status:

o o

Single Married 3. Gender:

o o

Male Female 4. Monthly disposable income:

o o o o

Rs (50,000-1,00,000) Rs (1,00,000-1,50,000) Rs( 1,50,000-2,00,000) Rs (2,00,000 and above) 5. How much do you spend on shopping on a monthly basis?

o o o o

Rs (0-20,000) Rs (20,000-40,000) Rs (40,000-60,000) Rs (60,000 and above) 6. Which mall do you prefer to shop in?

o o o o o

Select Citywalk,Saket DLF Promenade DLF Emporio Ambience Mall Others(Please specify) _______________________________________ 7. On a scale of 1-5, rank the following brands based on your preference (5 for most preferred and 1 for least preferred)

o o o o o

Burberry ___ Louis Vuitton ___ Gucci ___ Armani ___ Others ___ 8. Which Burberry product do you like the most?

o o o o o

Trench coat Bags Dresses Perfumes Scarves 9. How would you rate (On a scale of 1-5) Burberryâ&#x20AC;&#x2122;s products based on the following factors: Excellent

Good

Neutral

Average

Below Average

Price Quality Exclusiveness Service Variety 10. In your opinion, how easily available are these fake fashion products in your area? o o o o o

Easily Available Available Difficult to get Not available Not at all available 11. Do you think you are able to distinguish a fake fashion product from the original?

o o o

Yes No Sometimes 12. I would buy a fake fashion product if:

o o o o

The quality is close to original The price is considerably lower to that of original The image of the brand is high The country of origin is prestigious 13. In your opinion, buying fake fashion products is appreciable:

o o o o o

Strongly agree Agree Neutral Disagree Strongly disagree 14. Do you own any counterfeit Burberry products?

o o

Yes No 15. According to you, what measure should Burberry adopt to prevent the problem of counterfeit products?

Legal actions

o o o

Introduce a cheaper range of products Opening more stores Better promotions

Thank you for your time and cooperation.