Brand protection and counterfeit products: An examination of resourcing

For firms operating in the global marketplace, effective brand protection is a critical defence against competitive risks. Firms allocate resources both internally and externally to protect their brand from the threat posed by counterfeit products. However, little is known about firms’ brand protection resourcing in general, and their reliance on external professional suppliers in particular. Drawing on prior research and interviews with anti-counterfeiting and brand protection practitioners representing 35 multi-national firms, this study provides actionable insights into the resourcing problem. It finds that the level of investment in anti-counterfeiting activities varies very widely, though is generally very low. Using a ‘resource orientation’ model, the study finds that firms are typically externally orientated, mostly relying on the services of external professionals. This creates a range of risks that must be managed, including cost, control, capability and corrupt behaviours. Low internal resourcing makes management of these external risks a significant challenge. Key impediments to adequate resourcing are indifferent leadership and the inability to quantify the return on investment from brand protection activities. The study concludes with a discussion of avenues for future research.