Identify and monitoring the counterfeiting market
The client is a Made in Italy manufacturer of high-quality footwear: we assisted this firm in order to identify and mitigate illicit sales activities in a target country in the eastern market.
The project was complex for three main reasons:
1) At that time the target country's rules on luxury brands had changed profoundly: in fact, the local government had imposed restrictions on foreign companies forcing them to create joint ventures with local entities.
2) It was impossible to reach the country due to the limitations caused by Covid-19. The company could not have traveled to the target country to find partners as the borders were closed. (alt. in particular, since the beginning of Covid, and travel being blocked, no one would be able to travel to the target country to look for a partner.)
3) By virtue of political closures, in that country’s luxury sector, players who are not local, even in business development, are disfavored.
All companies in the luxury sector and particularly in the fashion world today need to find a distribution channel with reliable partners in the target country, and they have huge difficulties in doing so because of the difficulty of traveling there. It is therefore increasingly challenging to get in touch with reliable partners.
To goal was to create a joint venture between the company and a local partner (based on the target country), in which the investment (store opening, e-commerce, etc.) is supported entirely by the local partner, leaving the company with the authority over commercial and communication strategies and approval of new locations.
BDB Network conducted extensive research in order to identify e-commerce sites that were selling these products illegally. New protections against abusive channels have been initiated. The BDB Network structure will be able to monitor the local partner’s operations and investigate any unauthorized sales channels
BDB Network identified local entities with which to create concrete partnerships, to set up stores, and corners through the creation of a joint venture, positioning the brand at the highest level.
Also, the company could not have traveled to the target country to find partners as the country borders were closed due to the Covid-19 limitations.
All companies in the luxury sector and particularly in the fashion world today need to find a distribution channel with reliable partners in the eastern market, and they have huge difficulties in doing so because of the difficulty of traveling there. It is therefore increasingly challenging to get in touch with reliable partners. By turning to BDB Network, they can count on a reliable structure rooted in both Shanghai and Beijing, with a team of people who have great experience and excellent connections in the world of luxury and fashion. So it is also possible to commission BDB Network for business intelligence activities to prevent counterfeiting, fraud, and the spread of unauthorized trade channels.
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