24th jan, 2011

How to combat IP-piracy – educate your consumers

I think there are two groups of consumers (roughly). There are the ones seeking to buy knock offs for economic (or ideological reasons) – The hard core consumers. There are the ones who think they are buying the real thing – regular consumers.
The approach for the two groups is different. The hard core consumers need hands on treatment – e.g. horror stories, cash fines and a high chance for getting caught. The ordinary consumers need education, differentiation in quality and guidance on how to be compliant. An example on guidance on how to be compliant is UGG. The company produces fashionable boots. Obviously they have a problem with knock offs because they have dedicated a whole area on their website into helping their customers spot the fakes and buy the original boots.
On their website the customers can see examples on what to look for when buying a pair of boots and even has a service that helps you locate official suppliers on the net. This is a good example on how you help your loyal customers and ensuring that they have a good boot experience.
A Danfoss representative once told me that the most damage to the Danfoss brand was not from defective Danfoss products but from copies believed to be made by Danfoss.

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