Combating counterfeit culture in India’s home furnishings market

Combating counterfeit culture in India’s home furnishings market

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The battle against counterfeits in home textiles is not only a business concern; it is an economic growth and consumer safety mandate, shares, Khiroda Jena.

Counterfeit products are not new to India’s markets, but in recent years, their influence has reached deeper, been more organised, and even more devastating. No market is immune, from luxury fashion to electronics. Home textiles, a market intertwined with fabric of Indian households is now a rising target. Counterfeits not only deceive consumers but also threaten the integrity of brands that have taken decades, sometimes centuries to build.

The home textile counterfeiting challenge transcends the “fake vs. real” problem. It is an issue that goes to the very heart of safety for consumers, brand integrity, and the well-being of India’s textile ecosystem. It takes a concerted effort by all concerned parties, industry players, enforcement agencies, policymakers, and consumers.

Why counterfeits thrive in India’s home furnishings market

The explanations for the surge of counterfeit goods in home furnishings are multifaceted:

Price sensitivity of the market: India is still a very price-sensitive market. Counterfeits take advantage of this by marketing seemingly equivalent products at a fraction of the price, usually tricking unsuspecting consumers into thinking that they are in receipt of a “deal.”

Fragmented retail channels: Thousands of unorganised small retailers across the nation render it easier for counterfeits to find their way into the supply chain. In contrast to organised retail, these markets are frequently without checks and balances.

Digital proliferation: With the rise of e-commerce and social media marketplaces, counterfeit products are now only a click away. The barriers to entry have been reduced by digital platforms for counterfeiters to access millions of customers with minimal traceability.

Consumer awareness gap: Most customers do not know how to tell the difference between genuine and fake products, not when it comes to something as everyday as bedsheets, towels, or curtains. A fake logo or low-quality material can easily escape detection, until it is too late.

The hidden costs of counterfeits

While counterfeit products may seem to be an “affordable option,” the hidden costs are far-reaching:

For consumers: Counterfeits are made with lower-quality materials and paints that sacrifice durability, comfort, and sometimes even health (i.e., skin irritation or allergic reactions to poisonous dyes). This concern is particularly significant in bedsheets, which are brought into direct contact with the skin for extended periods of time.

For brands: Counterfeits dilute brand equity, undermine customer loyalty, and lead to huge financial losses.

For the economy: Counterfeiting compromises legitimate businesses, reduces tax revenues, and fosters an informal economy that hurts India’s long-term growth opportunities.

Towards a counterfeit-free future

Addressing this challenge demands concerted action on many fronts:

Industry collaboration: Players in the textile and home furnishings industry need to join hands to form a collective strength. Common databases, collaborative enforcement efforts, and industry organisations can enhance impact.

Technology as a shield: Technologies such as QR codes, blockchain authentication, and tamper-proof tags have the potential to enable customers to check for authenticity in real-time.

Improved policy frameworks: Governments must impose stricter sanctions for counterfeiting trade and facilitate it becoming less difficult for brands to pursue and succeed with legal action. Intellectual property regulation needs to be enforced more robustly.

Consumer empowerment: Ultimately, education is the greatest weapon. Informing customers of the risks of buying counterfeits and empowering them with means to recognise originals – be it a branded bedsheet or a bath towel set can diminish demand for counterfeits.

Digital accountability: Online marketplaces need to take responsibility for listings containing counterfeit products. An efficient grievance redressal and takedown system is key to curbing online counterfeits.

Why it matters to every Indian household

On the surface, counterfeit home decor doesn’t seem as dire as counterfeit medications or fake electronics. But the damage is certain. Imagine a young couple furnishing their new home, or a parent purchasing bedsheets for their child. When those items are found to be counterfeit, it isn’t so much money wasted, it’s trust lost.

For consumers, purchasing genuine products is an investment in quality, safety, and longevity. For manufacturers, it’s about maintaining the heritage and craftsmanship that has been cherished over generations. And for the country, preventing counterfeit trade is about securing the economy and enabling the millions of livelihoods that are attached to the Indian textile industry.

The battle against counterfeits in home textiles is not only a business concern, it is an economic growth and consumer safety mandate. Together, industry, government, and consumers can build a marketplace where quality cannot be replicated, and trust cannot be forged.

About the author:

Khiroda Jena, Chief Financial Officer at Bombay Dyeing, brings over 24 years of cross-industry experience spanning strategy, business planning, deal structuring, negotiations, project valuation, and private equity funding, along with full P&L management responsibility. A Chartered Accountant by qualification (ICAI) and an alumnus of the Ross School of Business, University of Michigan, he has previously held key leadership positions at Tata, Reliance Communications, and other leading organisations, contributing to business transformation and financial excellence across diverse sectors.

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