Counterfeits cause annual losses of €7m in the jewellery sector in Malta
Watches and handbags sectors also vulnerable to counterfeits, EU report shows
Counterfeits cause annual losses of €7 million in the jewellery and watches sectors and €1 million in the handbags sector in Malta, according to a report by the European Union Intellectual Property Office (EUIPO).
The report says that design of a product plays a decisive role in consumer purchases across the European Union. But as design becomes an increasingly important factor in consumer decisions, European creators and businesses also face growing risks from counterfeiting.
The EU-wide survey found that 72% of European consumers consider product design important when deciding what to buy. Around one third (31%) of respondents said that design was very or extremely important when buying a product. Half of EU consumers valued a good design, and 73% were willing to pay more for a product with a better design.
Design mattered particularly to younger consumers: 80% of those aged 18 to 24 said it was an important factor in their purchasing decisions. Young people were also more likely to be willing to pay higher prices for better-designed products and to associate design with positive emotions.
But the value of design also makes it vulnerable to counterfeiting and unauthorised copying, which remain widespread across key sectors such as fashion, furniture, electronics and other consumer goods.
Counterfeit products that mimic the appearance of genuine products have become widespread, fuelled by the expansion of e-commerce and the influence of social media, the report says.
Around 13% of Europeans reported having intentionally bought counterfeit products, a figure that rose to 26% among younger consumers aged 15-24. According to the EUIPO data, the fashion and clothing industry, closely linked to design, suffered estimated annual losses of €12 billion, while counterfeit handbags, jewellery and watches cost genuine manufacturers around €2.7 billion in lost sales every year across the EU.
In Malta, counterfeiting causes annual losses of €7 million in the jewellery and watches sector and €1 million in the handbags sector.
SMEs are particularly vulnerable to this type of infringement, as they often rely on a small number of distinctive product designs and have limited capacity to monitor and enforce their design rights.
EUIPO said that beyond the economic impact, counterfeit products can pose serious health and safety risks for consumers and for the environment, as they often do not comply with safety and quality standards.
Research also showed that the trade in counterfeit goods is linked to organised criminal networks and, in some cases, to labour exploitation.
Design-driven industries represent a substantial share of EU economic activity and employment. They employ around 28 million people, accounting for approximately 13% of EU employment, and generate over 16% of the EU GDP.