The chapter seeks to examine how IT enables or constrains counterfeiting and piracy in the fashion and beauty industry in two developing countries. The chapter also highlights the types of IT used in the industry and how IT aids in the ascendance of counterfeiting/piracy. The findings suggest that the escalation of counterfeiting/piracy in the industry is as a result of globalisation and the predominance of technological innovation such as IT, specifically the internet and social media platforms. This chapter contributes to the strategies that the industry in developing countries use in combating counterfeiting/pricy in their business. In academia, arguably, no research has been conducted yet on counterfeiting/piracy in the fashion industry in Ghana and Nigeria, as far as the role of IT is a concern.
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Counterfeiting notably, industrial product counterfeit is one of the fasters growing segments in the world today despite its resistance by many parties. This segment exists and continues to increase due to the enormous demand for the imitation of reputable and well-known brands, at a fraction of the cost of the original product. It is so because counterfeiters do not incur any research and development cost (Stroppa, di Stefano & Parrella, 2016; Ong, Chiang & Pung, 2015: Hamelin, Nwankwo & El Hadouchi, 2013). Not only but destroying many industries, bringing about employee redundancy, robbing governments of tax revenues and killing economies, funding terrorism and organised crime, as well as posing a danger to the well-being of society (Kennedy, Wilson & Labrecque, 2017; Quoquab, Pahlevan, Mohammad & Thurasamy 2017; Guin, DiMase & Tehranipoor, 2014). One has to consider a whole industry on its right when talking about counterfeiting and piracy. Even though counterfeiting is unlawful, it is a keen competitor for legitimate businesses and interestingly protecting their market share.
In the same way, piracy of authentic products has led to millions of business losing their market share (Arli, Tjiptono & Porto, 2015; Hamelin et al., 2013; Harvey, 1987). For instance, a study by Chaudhry and Zimmerman (2013) put forward that, over the past two decades, the growth rate of counterfeiting and piracy has exceeded 10,000% worldwide. They are causing lots of harm to most businesses, economies, and individual consumers.
Most researchers on product counterfeit and piracy have made it clear that the escalation of counterfeiting and piracy is as a result of globalisation and the predominance of technological innovation such as Information Technology (IT) and in particular the Internet and mobile devices.
On the other hand, the internet and mobile devices also help in the promotion of globalisation in trade and give both business and individual consumers easy access to shop and pay online globally (Li & Yi, 2017; Quoquab et al., 2017; Inamdar, 2015). These technological innovations are also used to manage the process and communicate information as well as an essential representation of this modern era (Laurell, 2016; Meraviglia, 2015; Asongu, 2013). As has been mentioned, these technological innovations play dual or double-edged roles in most businesses. The fashion and beauty industry (F&B industry) is one of such industries that have seen the dual effect of these technological innovations (Herstein, Drori, Berger & Barnes, 2015; Meraviglia, 2015; Fernandes, 2013; Kim & Karpova, 2010).