Luxury Fashion Counterfeit Battle
As brands seek out trademark registration and firm international agreements under the World Trade Organization (WTO) to protect their intellectual property, a new report from Entrupy, an AI-powered authentication technology provider, takes a closer look at the 'State of the Fake.'
Based on Entrupy's proprietary data alongside intelligence from hundreds of thousands of AI-powered product evaluations conducted across a global assortment of merchandise:
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Louis Vuitton is the most counterfeited luxury brand, accounting for 32.76% of all Entrupy submissions for luxury goods.
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Prada was the second most counterfeited luxury brand regarding handbags, with 14.42% of all Prada bags scanned by Entrupy being flagged as "unidentified," or fake.
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$12,190,340 worth of fake Gucci handbags were submitted to Entrupy for verification in 2024, with Chanel accounting for the highest total dollar value with a total of $500,470,067 in counterfeit goods detected.
Counterfeiting remains a serious issue, with fraudulent returns and claims costing US retailers an estimated 103 billion dollars, accounting for 15.14% of all returns in 2024.
Part of this can be seen as the consequences of consumers' shopping choices.
In 2023, 40% of US consumers and 26% of UK shoppers purchased online with Shein or Temu, known platforms for counterfeits. With counterfeiters becoming more savvy and using sponsored posts on social media to promote fakes, tracking them down is becoming more difficult, which is reflected in the data.
Source: Fashion United
Garment Workers at Risk in American ICE Raids
As raids continue across the US, American brands, retailers and even fashion schools, where immigrants make up a substantial fraction of the student population, must recognize the increasing risks.
In a climate overshadowed by fear, it is imperative that industry leaders and fashion companies take a stand — acknowledging their responsibility and committing to actions that prioritize the well-being and support of their employees.
The most meaningful action fashion employers and stakeholders can take against immigration raids is to support their workforce and safeguard their wellbeing, stated Marissa Nuncio, Executive Director of the Garment Worker Center.
First, there needs to be a plan in case of a workplace raid or audit by ICE, Nuncio explained. Businesses can protect job sites as a private space, demanding a judicial warrant from federal authorities and training their employees to exercise their rights to stay silent.
“Businesses should feel a sense of responsibility in how to protect their workforce,” Nuncio said. “This is a moment where everyone should think about their sphere of influence … and reach out to community organizations and [seek] legal advice.”
Companies can pursue their own internal compliance audits to make sure they have the right documentation on file for their employees, according to Susan Scafidi, director of the Fashion Law Institute.
“Fashion companies can also seek out local immigration law resources, pro bono and otherwise, and share that information with their employees before rather than after a raid or an arrest,” she said. “Education and preparation may not stop disruptive government action, but they can limit potential harm to both employers and employees.”
And where possible, the industry should speak up.
“Individual companies may have remained silent for fear of retaliation or the belief that their voices won’t have an effect, but trade associations and other nonprofits can and should speak up on behalf of the industry and its role in the American economy,” said Scafidi. “This is an issue on which both sides of the aisle should be able to come together.”
Source: Business of Fashion
Alta, An AI Powered Shopping Tool Raised $11 Million
The styling platform raised funding from investment firms including Arnault’s family-owned Aglaé Ventures and model entrepreneur Karlie Kloss.
The personal shopping tool curates clothing recommendations based on the user’s current wardrobe, lifestyle, budget, occasion, and weather.
Customers are able to virtually try on outfit recommendations using digital avatars.
Investments will go towards elevating Alta’s product development and AI capabilities.