One in three consumers wouldn’t buy from a brand again after unknowingly purchasing a counterfeit
MarqVision adds revolutionary test purchase program to verify authenticity and rapidly remove dangerous fake products from marketplaces
As holiday shopping ramps up and consumers seek beauty gifts, MarqVision, a leader in Gen AI-driven brand protection solutions, has released a groundbreaking report, highlighting the dangers and impact of counterfeit cosmetics on both brands and consumers. MarqVision’s research provides beauty brands with critical insights around consumer purchasing behavior, emerging counterfeit tactics, and the significant costs of leaving a brand unprotected.
The Real Costs of Fake Beauty
After surveying over 500 consumers who bought counterfeit cosmetics in the past year, the report uncovered trends around the profound and often irreversible damage caused by counterfeit cosmetics:
- The Rise of Superfakes: An overwhelming majority of consumers, 71.6%, sought authentic products but ended up buying fakes, which means counterfeits are getting more adept at slipping past even the most vigilant customers.
- Loyalty at Risk: One in three consumers wouldn’t buy from a brand again after unknowingly purchasing a counterfeit. Even when it’s not the brand’s fault, these experiences erode customer loyalty, leaving brands to bear the reputational fallout and effects of lost revenue.
- Word-of-Mouth Damage: Nearly 26% of consumers share their negative experiences on social media, amplifying the reputational harm and deterring future customers.
- Growing Expectation for Brand Protection: Over 15% of consumers directly blame brands for not removing counterfeits, reflecting a rising expectation for brands to take decisive action and institute protective measures against fakes to safeguard customers.
An Industry-Wide Crisis: Counterfeits in the Beauty Sector
The report shows that counterfeits are especially pervasive in the beauty industry, where premium products with high demand, such as skincare and makeup, are prime targets. This issue transcends brand integrity and poses a direct risk to consumer health as these fake products often contain harmful chemicals and unregulated ingredients.
- Health Risks of Counterfeit Skincare and Makeup: The report confirms that counterfeit skincare (61.8%) and face makeup (38.2%) are the most counterfeited categories. By purchasing them, consumers unknowingly expose themselves to toxic ingredients found in these products, often resulting in serious skin reactions or long-term health impacts.
- Social Media as a High-Risk Channel: Almost half (43%) of consumers encountered counterfeit cosmetics on social media shopping channels, where counterfeiters capitalize on the visual and impulsive nature of the platform to promote fakes as legitimate products.
- Trusted Marketplaces Still at Risk: Even well-regulated marketplaces like Amazon and eBay saw 38.2% of respondents report counterfeit experiences, emphasizing the need for vigilant monitoring across all platforms.
Even the Most Beloved Brands are at Risk
Whether a long-established, popular brand, an up-and-comer with a cult-like following, or a brand with global appeal, they are all under attack.
- High-Profile Brands Remain Biggest Targets: Brands like L’Oreal, Maybelline, Clinique, and MAC Cosmetics represent some of the most counterfeited names, with each capturing over 10% of consumer encounters with fakes. These brands are highly visible, widely distributed, and trusted by consumers, which are factors that make them attractive targets for counterfeiters. The issue is further complicated by the price factor for drugstore brands like L’Oreal and Maybelline. Since these products are typically affordable, the lack of a “price red flag” increases the likelihood of consumers unknowingly buying fakes, assuming they’re legitimate.
- Kylie Cosmetics and Fenty Beauty: These celebrity-driven brands face substantial counterfeit exposure, with each cited by 6.12% of respondents. This could be attributed to the fact that they rely heavily on social media visibility and consumer affinity for Kylie and Rihanna, which counterfeiters exploit by creating convincing replicas that mislead consumers.
- K-beauty brands, including Laneige, Sulwhasoo, and Innisfree: After gaining global traction, they now face increasing counterfeit threats, as shown by their presence in the counterfeit data. These emerging brands may be particularly vulnerable because they are expanding into international markets, where counterfeits can distort consumers’ first impressions and prevent these brands from establishing a foothold.
Fighting Back: MarqVision Empowers Brands to Protect Their Customers and Reclaim Control
In response to these challenges, MarqVision’s anti-counterfeit platform, Marq AI, provides cosmetic brands with a powerful tool to detect and remove fakes across all critical digital channels. The platform already includes features like automated enforcement and monitoring in emerging channels. Today MarqVision adds the industry’s fastest verification and enforcement offering through Marq AI and its Test Purchase Program, which identifies likely fakes with 99% accuracy, verifies them through expert analysis, and delivers the necessary proof to remove infringing listings on U.S. marketplaces in days, not weeks. With these unmatched capabilities, Marq AI allows brands to stay ahead of counterfeiters to safeguard their reputation and uphold customer trust.
“In beauty, trust is everything. Brands cannot afford to let counterfeiters interfere with their customer relationships,” said Mark Lee, CEO and Founder of MarqVision. “Counterfeit cosmetics are notoriously hard to prove without in-person and expert verification, as packaging and product details now look identical to legitimate versions. That’s why we’re dedicated to constant innovation to protect beauty brands. With Marq AI’s industry-leading detection capabilities and our Test Purchase Program, we can verify counterfeits and initiate their removal in days, not weeks, on U.S. marketplaces like Amazon.”
Download the Full Report and Protect Your Brand
Beauty brands are invited to access MarqVision’s report on counterfeit cosmetics to understand the scope of the issue and learn how to fortify their defenses. Or, book a demo to see how MarqVision’s technology can work for your brand.
About MarqVision
MarqVision’s mission is to protect and build a future shaped by original ideas, innovations, and creativity. As a leading online brand protection solution, we help global brands identify and remove counterfeits from over 1,500 platforms and thousands of rogue websites in over 118 countries. In a time when counterfeiting poses an increasingly serious challenge, we believe that democratizing legal expertise and access to the latest in generative AI technology is critical for continuing to support the inventors, developers, and artists of the world who work tirelessly to deliver safe, high-quality products.
MarqVision’s technology powers everything from detection, monitoring, and even enforcement to protect brands at scale. Founded in 2020 by Harvard Law graduates, MarqVision is proudly backed by Altos Ventures, DST Global Partners, Softbank, Atinum Investments and Y Combinator. Our commitment to innovation has also been recognized with a prestigious 2022 Innovation Award from LVMH Louis Vuitton Moët Hennessy (LVMH), and we are honored to be part of the LVMH accelerator program, La Maison des Startups, at the Station F incubator. As we bring forth the next evolution of brand protection, we invite businesses everywhere to join us in safeguarding the creativity that drives our world.
