/ Piracy and Centennials: How are we doing at home?

Studies show that Generation Z considers it acceptable to buy counterfeit products. However, the new generations must understand that a luxury product owes its value not only to the raw material it is made of, but also to everything that supports it.

Francesca Bozzo
Associate
Alessandri

If fifteen years ago when talking about piracy what came to mind were CDs, DVDs, and books bought in informal stores, today in the new generations the word evokes other goods. Handbags, shoes, sneakers, jewelry, watches and eyeglasses are the products that young people think of when talking about piracy. In fact, the word they refer to is often “fake”.

The luxury industry continually maximizes its efforts to curb the advance of copies and counterfeits. That’s why it’s striking that Generation Z thinks it’s acceptable to buy fake products,” according to Business of Fashion, a portal specializing in fashion, luxury and creative industries. A survey of users born between 1997 and 2009 showed worrying results: more than 50% believe it is okay to buy fake products, and more than a third would be willing to use them.

There are platforms that favor the authentication of products prior to their sale, such as BeReal, or the incorporation of Blockchain technology to Vacheron Constantin luxury watches, or the most recent development of Richemont (owner of Cartier, Piaget, Jaeger LeCoultre, among others) where users can register their watches through serial numbers and report thefts.

With all these innovations at hand, it is worth asking ourselves what has gone wrong with the generation that openly consumes handbags or backpacks with elements or designs characteristic of well-known fake brands acquired through social networks, necklaces and bracelets imitating luxury brands through links hidden in well-known applications available on mobile devices, or shoes of questionable origin that try to appear from recognized Italian fashion houses.

The logical answer is to think about education. The new generations must understand that a luxury product owes its value not only to the raw material that composes it, but also to everything that sustains it: the craftsmanship of those who make it, the fair payment to its artisans and suppliers, the creative, legal and marketing teams, the global distribution chain, taxes, and a long etcetera that is not seen. Buying counterfeit goods is financing criminal activities that generate an estimated 4.5 trillion dollars a year.

The efforts of small, medium and large entrepreneurs to protect their brands and inventions will be of no use if the generation that will continue the business in the future does not understand today the value of intellectual property and the efforts involved.