Combating Counterfeiting: GTM Strategies for India’s Luxury Sector
India’s luxury market is booming, projected to grow from $17 billion in 2024 to $85 billion by 2030, driven by rising affluence and digital adoption. As global brands expand, counterfeiting threatens premium integrity, eroding trust and revenue. For senior leaders, crafting Luxury GTM strategies that tackle counterfeiting is essential to sustain growth and protect brand equity in India’s dynamic market.
GTM Context & Market Overview: Counterfeiting as a Strategic Risk in India’s Luxury Sector
India’s luxury landscape blends global giants and innovative local brands in fashion, jewellery, and watches. However, counterfeiting undermines premium integrity by flooding markets with fakes. Entry routes like mono-brand stores, online flagships, and Direct-to-Consumer (DTC) platforms face unique risks. Mono-brand stores suffer from grey market leakage, where unauthorised sellers distribute discounted or fake goods. Online flagships battle counterfeit listings on third-party platforms, while DTC channels struggle with cross-border fakes slipping through e-commerce gaps. These vulnerabilities demand robust Luxury GTM strategies to ensure brand protection.
1. Emerging Counterfeiting Trends & Grey Market Risks (as of June 2025)
- Counterfeiting evolves with technology, posing new challenges as of June 2025:
- Tech-Enabled Counterfeiting: AI-generated replicas mimic intricate designs, while deepfake endorsements deceive consumers on social media.
- Cross-Border E-commerce: Grey market dealers exploit courier loopholes, moving fakes via complex shipping networks.
- Regulatory Updates: The RBI and BIS introduced stricter IP and traceability rules in 2025, including the CBDT’s April 2025 TCS amendment for luxury goods over INR 10 lakh. Yet, enforcement lags due to poor customs training and limited digital monitoring tools.
These trends highlight the need for proactive brand protection within Luxury GTM frameworks.
2. Strategic GTM Response to Counterfeiting
A hybrid approach integrating management, legal, financial, and technological expertise helps combat counterfeiting while preserving premium integrity.
- Channel Strategy
Prioritise controlled channels to reduce counterfeiting risks. Official DTC e-commerce with geo-fencing technology limits unauthorised sales. Expand authorised retail over broad distribution for tighter oversight. Use QR-coded authenticity tags and blockchain provenance to verify products, educating customers to build trust and deter grey market purchases.
- Brand Protection & Legal Readiness
Proactive legal measures strengthen brand protection:
- Compliance Framework: Register IP with DGFT and Customs to block fake imports.
- Enforcement Partnerships: Collaborate with police and legal firms for raids and online takedowns of counterfeit goods.
- Anti-Counterfeit Teams: Establish internal intelligence units in India to monitor and act against counterfeiting swiftly.
- Technology & Analytics
Leverage technology to stay ahead of counterfeiting:
- AI Monitoring: Deploy AI to detect price anomalies and unauthorised listings on marketplaces.
- AR/VR Authentication: Use AR/VR for secure product demos and app-based ownership registration, enhancing brand protection.
- Customer Trust & Engagement
Build trust to reinforce premium integrity:
- Luxury CRM: Educate customers on genuine product traits via personalised campaigns.
- Loyalty Clubs: Offer verification services, digital receipts, and lifetime repairs to incentivise authorised purchases and discourage counterfeiting.
- Regulatory Advocacy
Shape a supportive regulatory environment:
- Collaborate with BIS/RBI: Streamline IP and customs rules for luxury SKUs.
- GST Simplification: Advocate for clearer GST classifications to reduce grey market arbitrage.
Case Studies
- Swiss Watchmaker: A Swiss brand used blockchain-based QR codes for provenance tracking, cutting counterfeit returns by 70% in India, boosting consumer confidence.
- Indian Startup: A leather goods startup combined influencer advocacy with pop-up authenticity booths, reclaiming 40% of sales from grey markets and strengthening premium integrity.
Conclusion
Counterfeiting threatens India’s luxury market, but effective Luxury GTM strategies can counter it. By embedding brand protection, leveraging technology, and fostering customer trust, brands safeguard premium integrity. Collaboration with regulators and proactive channel control further reduce risks, ensuring luxury brands thrive in India’s promising yet challenging market.
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