There are all these articles flooding Google, talking about how important data is for businesses and how brands that have the control over their data impact can improve their reputation score.
But amidst this buzz, the actual components of this critical data and its tangible effects on businesses often remain ambiguous.
So, what exactly is this elusive "data impact," and why should fashion brands prioritize tracking it?
Read this article to learn more about how collecting online data can drive meaningful outcomes for a fashion brand’s revenue and reputation.
1. How does neglecting data impact harm fashion brands’ revenue?
Many fashion brands, especially smaller ones with tighter budgets, overlook the data impact on their revenues.
Even those who do understand the importance of data in business, often stumble in establishing a clear data strategy.
This leaves them uncertain about which data to track, how to interpret it, and how to use it in a way that drives meaningful results.
The main consequence of this behavior?
Revenue loss.
See, when a brand doesn't monitor its data - and under that we mean all the information about one brand across all online channels - it may not be aware of counterfeit goods being sold under its name.
This is a huge issue because counterfeiting industry is estimated to be worth about $3 trillion yearly, meaning that it is creating serious illicit competition that significantly impacts the revenue of fashion brands.
Consumer sentiments are yet another piece of data that plays a huge role in impacting fashion brands' revenues, and many brands fail to grasp its importance.
For instance, a great deal of negative reviews and mentions are likely to make a brand less appealing to consumers. These negative sentiments:
- Drive consumers to purchase from competitors instead of the brand in question.
- Create opportunities for counterfeiters to offer cheaper, inferior quality alternatives, further damaging the brand's reputation and sales.
As you can see, failing to monitor online data can have far-reaching consequences for fashion brands. Ones that go beyond financial losses.
But we’ll get to that in a minute...
2. What is the data impact on a fashion brand’s reputation?
The impact of consumer feedback and data on counterfeit goods goes beyond monetary damages, extending to reputational harm.
Now, brand reputation isn’t built on thin air.
It takes decades of consistent quality, effective communication, and customer trust to establish a strong one.
Unfortunately, this hard-earned reputation can vanish in an instant if a brand neglects its online data.
To put it plainly: Brand reputation is a direct result of the public’s perception of its products.
So, if consumers have negative experiences with a brand's products or services, they are likely to share those experiences in the form of negative reviews that can erode customer trust.
But it goes further than that.
There are instances when, despite a brand's efforts to maintain high-quality standards in their own production, customers still get in touch with counterfeit goods of inferior quality.
These goods are often produced without adherence to quality standards or oversight and are known to lack craftsmanship and performance of authentic products.
As a result, when customers unknowingly purchase these counterfeit items and experience issues with them, they often associate these negative experiences with the brand itself.
This, above all, underlines the importance of understanding the data impact on a brand’s reputation and maintaining high-quality standards to preserve consumer trust.
(After all, what is the value of purchasing from a brand that fails to deliver the quality it promises?)
3. How can fashion brands manage their data impact effectively?
To manage their data impact effectively, fashion brands need to lean into technological solutions.
Precisely, ones capable of identifying harmful mentions and copycats across various channels.
Since this kind of detection requires the quick analysis of vast amounts of data, an AI-powered tool that can identify infringing patterns and harmful anomalies would be a fashion brand's best bet.
That’s where Reputeo, an AI-powered software, steps in.
Let’s take a look at how this IP data engine facilitates the detection of information damaging to the brand’s revenue and reputation:
By using machine learning, Reputeo automatically spots trademark misuse and sniffs out fake sellers. It does so across social media platforms, search engines, and marketplaces, leaving no stone unturned.
Apart from detecting counterfeit goods with the highest degree of accuracy, brands can use Reputeo’s algorithm to track inaccurate price values across different currencies and take action against poor reviews resulting from fake products.
After performing image recognition and text analysis (and doing so much faster than humans!), Reputeo provides brands and their intellectual property lawyers with a detailed report containing:
- The URLs of counterfeit listings,
- Profile names of counterfeit sellers,
- Platform names with counterfeit goods; and
- Instances of poor reviews resulting from purchases of fake, counterfeit products.
And the benefits for both fashion brands and their legal teams don’t end there either!
Reputeo also issues practical tips for facilitating legal action against counterfeiters, as well as strategies for managing and responding to negative reviews resulting from counterfeit goods.
Unlike other solutions that focus solely on detection, Reputeo works in synergy with brands’ legal teams to combat counterfeit goods and manage the repercussions of negative reviews effectively.
The result?
Armed with this information, brands can take decisive, real-time action to protect their brand integrity, while saving time and resources for everyone involved.
4. The data impact of counterfeit goods on famous fashion brands
For this article, we’ve decided to single out three fashion brands from three global markets, particularly affected by counterfeit goods.
Let’s analyze their data impact in combating counterfeit goods:
1. Nike (U.S.)
Nike sneakers are one are among the most replicated and widely sold knock-offs in the American market.
They are estimated to cost Nike between $5 to $200 per counterfeit piece on the market.
Counterfeit Nikes surged in popularity following the release of the brand's Air Jordan line, which sparked a cultural phenomenon and elevated the brand's status.
These shoes, endorsed by basketball legend Michael Jordan, became iconic symbols of style and athleticism. This made them highly coveted particularly among young consumers.
However, since retail prices were (and still are) often prohibitively high, counterfeiters saw this as an opportunity to provide a more affordable and nearly identical alternative.
By mimicking the designs of popular Nike sneakers, they could offer consumers a way to own what appeared to be authentic products at a fraction of the cost.
This strategy appealed to budget-conscious consumers who desired the status and style associated with Nike.
But Nike had a strategy of their own; a data strategy.
Their approach was to monitor online marketplaces and social media platforms for unauthorized sellers, using data analytics to identify patterns associated with counterfeit goods.
Ultimately, this understanding of their data impact helped Nike take proactive measures to protect their brand revenue and reputation.
2. Burberry (UK)
This British luxury fashion brand, known for its iconic trench coats and plaid patterns, faced plenty of challenges over the years due to counterfeit goods.
Particularly, the Burberry scarves became a prime target for counterfeiters, thanks to their recognizable check pattern and distinctive design.
Back in time, these scarves flooded the market, often with inferior quality. This undermined the brand's reputation for luxury and craftsmanship.
So, to retain the value and exclusivity of their items, this old-school British brand invested in learning about their data impact and used it to implement stringent anti-counterfeiting measures.
3. Gucci (IT)
We can’t discuss the counterfeiting of fashion brands without mentioning at least one Italian fashion house, can we?
Founded in Florence in 1921, Gucci has become synonymous with high-end fashion, making the brand a prime target for counterfeiters looking to profit from its allure.
The Gucci belt is a prime example of this phenomenon, with its allure lying in its versatility and the remarkable ability to transform any basic outfit into a sophisticated ensemble.
This instance of counterfeiting presents a huge issue for this fashion brand, as many of these belt replicas are hard to distinguish from the real product.
The rest, which are of poor quality, created negative associations with the genuine brand, tarnishing Gucci’s reputation.
Moreover, these belts are sold massively and across all popular e-commerce platforms that host unauthorized listings, which makes detection and enforcement complex.
While Gucci has taken some steps to fight back against these counterfeit goods and trademark infringements, its financial losses remain substantial, meaning that this brand could benefit from additional control over its data impact.
Conclusion
It seems that in combatting counterfeit goods and fake reviews spanning from fake products, technology emerges as the fashion industry's most potent weapon.
With the rise of AI-powered tools like Reputeo, brands can now detect and combat these harmful actions across various channels with unparalleled accuracy and efficiency.
These technological solutions not only protect brand reputation and consumer trust but also help preserve the economic vitality of the entire fashion industry.
To give Reputeo a try, book a demo.
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