The World Customs Organization reports that the trade in counterfeit retail goods is approximately 7 percent of all world trade, an annual expenditure total of $725 billion. This illegal manufacturing activity was once exclusive to luxury brands such as Louis Vuitton, Coach and Gucci — companies that understand that their most important brand assets are their core identifiers of colors, shapes and symbols, and employ legal teams to combat such brand thieves.
However, copycat activity by private label brands in the CPG world is more difficult to curtail, for unlike other fair trade models, the same customer is also an informed competitor. As a result, despite widespread copycatting, it is often difficult for manufacturers to protect their brands, and CPG companies infrequently opt for legal action due to their economic partnerships with retailers.