Chapter 10 Consumer Concerns on Counterfeiting in the Fashion Supply Chain: Gen Y and Z Point of View

The dynamic and evolving character of the fashion market, affected by globalisation and technology development, has resulted in complex supply chains. In order to keep costs down, fashion companies have relocated their production facilities to developing countries. At the same time, easing trade restrictions and reducing tariffs have encouraged fashion companies to offer their products all around the world. Accordingly, fashion supply chains have become geographically dispersed, with an increasing number of members, and decreasing traceability and visibility of the chains. As a consequence of that, they face uncertainties and some risks, from stock-outs, late deliveries, over-stocks, to counterfeits etc. This chapter sheds light on counterfeiting as the making of a product that so closely imitates the appearance of the product of another as to mislead consumers that the product is an original. Counterfeiting presents the biggest threat to the fashion industry due to its growing popularity among consumers who were not aware of buying fakes or knowingly bought fake fashion items. This chapter aims to examine the pros and cons of purchasing counterfeit fashion products (CFPs) by Gen Y and Z consumers, as they are more likely to purchase them. The results of the study on a sample of young Croatian consumers show that they prefer CFPs due to functional benefits of price and accessibility, and overestimated originals. The main reasons for young consumers not purchasing counterfeits are the perception of having poor quality relative compared to authentic ones as well as the ethical and legal dilemmas involved.