The Changing Preferences of Generation Z
The youth of Generation Z are seeking genuine connections, authentic content, and healthier lifestyles. Surprisingly, many of them have no qualms about consuming counterfeit products.
According to a recent study conducted by the European Union Intellectual Property Office (EUIPO), 37% of the 22,021 people surveyed between the ages of 15 and 24 admitted to acquiring at least one fake product in the last twelve months, compared to 14% in 2019.
Another study carried out by Juv Consulting among US consumers aged 13 to 25 revealed that a majority found it acceptable to purchase counterfeits, with a third willing to use them.
A Shift in Perception
In the past, using pirated products was synonymous with disrepute. However, the younger generation’s preference for authentic products has changed.
“Consumers, particularly younger ones, are moving away from conspicuous consumption. They are still interested in gaining status, but are looking to achieve it through thrift and frugality,” said Chris Beer, a data journalist at consultancy GWI, in an interview with the Financial Times.
GWI’s survey of 2,110 Gen Zers across 12 countries in 2023 found that 20% of them believed inflation had a “dramatic” impact on their finances.
The Persistence of Counterfeit Culture
European consumers are well aware of the problems associated with buying counterfeit products. The EUIPO report highlighted that 83% of them believe counterfeits promote unethical behavior, 80% think it aids criminal organizations, and 79% believe it harms the economy by hurting legitimate businesses and reducing job opportunities.
However, a significant group of young people would still purchase counterfeit goods if they were cheaper than the original items.
“In general, younger consumers are more likely to justify buying counterfeit products, especially when the price of the original is too high. For example, 50% of 15-24 year olds agree or tend to agree that it is acceptable to buy counterfeit goods, and 41% say it is acceptable to buy counterfeit luxury products,” stated the report.
A Historical Perspective
Interestingly, the allure of counterfeits is not a new phenomenon. Counterfeiting has existed since ancient times.
Jason Rutter, a PhD from the University of Dundee, and Jo Bryce, a professor at the University of Central Lancashire’s School of Psychology, noted that counterfeits already existed in 27 BC. The earliest evidence of pirated goods can be traced back to wine amphorae lids with forged seals, which aimed to pass off local wine as a more expensive Roman import.
Roman philosopher and soldier Pliny the Elder (AD 23-79) wrote about the desirability of counterfeit coins among collectors, documenting instances where counterfeit coins were purchased for more than their face value.
Rutter and Bryce suggest that counterfeiting has been used to generate profit and evade taxes throughout history, and there have always been individuals willing to buy such products.
The Rise of “Dupes”
One of the challenges faced by big brands today is determining what constitutes a counterfeit.
The International Coalition Against Counterfeiting (IACC) defines counterfeiting as a crime involving the theft of a registered trademark. However, on platforms like TikTok, influencers often promote “dupes,” which are cheaper imitations of expensive products that may not necessarily be counterfeits from a legal standpoint.
Sangeeta Singh-Kurtz explained that the term “dupe” emerged in the cosmetics industry in the early 2000s as a shorthand for duplicate. It gained popularity after the 2008 financial recession when influencers started endorsing affordable alternatives to high-end brands.
The problem, according to Singh-Kurtz, is that TikTok’s immense influence has elevated socially promoted imitations above the original versions, disregarding the traditional cost-value relationship. “Quality alternatives have been dwarfed by a tsunami of garbage,” she remarked.
It begs the question whether Generation Z is truly interested in paying exorbitant prices for branded products when they can obtain functional items like lipsticks or handbags at a fraction of the cost.
Additional Sources
Sources: Euipo, Cadena Ser, ResearchGate, The Cut, The Objective, Financial Times, IACC.
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Generation Z, the youth of today, are seeking genuine connections, authentic content, and healthier lifestyles. Surprisingly, many of them have no issue with consuming counterfeit products. A recent study by the European Union Intellectual Property Office (EUIPO) found that 37% of surveyed individuals aged 15-24 admitted to acquiring at least one fake product in the last year, compared to 14% in 2019. Another study by Juv Consulting revealed that a majority of US consumers aged 13-25 find it acceptable to purchase counterfeits. This shift in perception is driven by a desire for thrift and frugality while still achieving status. However, despite being aware of the problems associated with counterfeits, many young people would still choose to purchase them if they were cheaper than the original items. Counterfeiting is not a new phenomenon, as evidence of pirated goods can be traced back to ancient times.
How can companies effectively educate Generation Z on the negative impacts of purchasing counterfeit products, while still appealing to their desire for thrift and frugality?
To effectively educate Generation Z on the negative impacts of purchasing counterfeit products, companies can take a multi-faceted approach that leverages their desire for thrift and frugality. Here are some strategies to consider:
1. Engage through social media: Generation Z is highly active on social media platforms. Companies can create engaging and informative content, such as videos, infographics, and memes, to educate them about the negative impacts of counterfeit products. Utilize influencers and popular online personalities to amplify the message and make it relatable.
2. Highlight the ethical and social consequences: Emphasize the detrimental effects of counterfeit products on various aspects. Show how they contribute to child labor, unsafe working conditions, human trafficking, and organized crime. Generation Z tends to prioritize social justice issues, so connecting the negative impacts to the broader ethical implications can effectively resonate with them.
3. Collaborate with Gen Z influencers: Partner with influential Gen Z content creators, bloggers, or YouTubers who are already committed to promoting sustainability, authenticity, and ethical consumption. Encourage them to share their own experiences or stories related to counterfeit products, helping to spread awareness among their audiences.
4. Provide educational resources: Create easily accessible online resources, such as downloadable guides, podcasts, or webinars that delve into the intricacies of counterfeit markets. It’s important to present this information in an engaging and interactive format to capture Generation Z’s attention.
5. Promote alternatives: Highlight the benefits and value of purchasing authentic, high-quality products. Emphasize the longevity, warranty, and the positive impact supporting legitimate businesses has on local economies, employment, and innovation.
6. Empower with knowledge: Educate Generation Z about how to spot counterfeit products. Teach them about trademarks, authentication methods, and the importance of purchasing from reputable sellers or authorized retailers. Enable them to make informed choices when shopping.
7. Offer affordable alternatives: Recognize and address the desire for thrift and frugality by creating affordable product lines or offering discounts, promotions, or loyalty programs for authentic products. Loyalty rewards can also be tied to responsible and conscious shopping choices, further reinforcing the value they place on authenticity.
8. Gamify the learning experience: Develop interactive online games or quizzes that educate Generation Z about counterfeit products. This gamification approach can make learning about the negative impacts more enjoyable, while still educating and raising awareness on the subject.
By combining educational initiatives, engaging content, and providing affordable alternatives, companies can effectively educate Generation Z on the negative impacts of purchasing counterfeit products while aligning with their desire for thrift and frugality.
Counterfeit products are a growing concern among Generation Z. It’s crucial that we educate younger consumers about the risks and consequences of supporting these illicit practices. Let’s work towards a future where the authenticity of products is valued and protected.
It’s disheartening to see the rise of counterfeit products among Generation Z. We must focus on educating and guiding our youth towards ethical consumption and supporting genuine businesses.