Counterfeit baby products - MARKET RESEARCH - Parents' buying behaviour, exposure to fakes and opinions - Red Points

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Counterfeit baby products - MARKET RESEARCH - Parents' buying behaviour, exposure to fakes and opinions - Red Points
MARKET RESEARCH

Counterfeit
baby products

Parents’ buying behaviour, exposure to fakes and opinions

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Key findings

              50% 30% 16%
              50% of baby            30% of consumers         16% of counterfeits
              product costumers      have bought              were sourced
              would buy a fake       fake baby product        from social media
              item if it had a big   at some point
              enough discount

             42% 40% 13%
             42% of costumers        40% of our sample        13% of counterfeits
             who bought a            who had bought           were sourced
             fake online were        a fake item online       from Wish.com
             looking for the real    did thinking it
             product                 was the genuine
                                     product

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Introduction
Babycare is big business, with the global market estimated to be worth              To better understand how to fight this issue, it is important to understand
in excess of $73 billion in 2018, and is predicted to grow to $81 billion           the experiences, habits and opinions of baby product consumers. This
by 2020. With new markets opening up in Asia and Latin America,                     information will allow brands to build comprehensive countermeasures
the potential for growth in the industry is enormous. This is particularly          that keep brands and customers safe.
true for China, where growing safety concerns and mistrust over
domestic brands has led to an increased demand for western baby
food products.

However, outside of foods and lotions, traditional product brands such
as Fisher-Price have seen increased competition. Fisher-Price saw an
11% drop in gross sales between 2016 and 2017. The problems
for baby product producers don’t stop there, counterfeiters looking
to capitalise on innovative designs or prestigious brands are rife on
online marketplaces. Innovative baby products have suffered particularly
badly at the hands of counterfeits, such as the Happy Mat,
which have been the victims of intellectual property abuse after
featuring on Kickstarter.

Many brands have responded to this with pages on their website such
as Ergo, Baby Gear and others. However, many customers remain in the
dark. Fake baby products can seriously damage children’s health. If the
materials used are not up to safety standards they can irritate the skin
of infants, or if they breakdown during washing they can become
a substantial chemical and choking hazard. In some extreme cases,
fake baby and children’s products have been found to contain potentially
carcinogenic phthalates.

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About the survey
Method
Our survey used an online survey platform that could provide us
with the reach and audience we wanted. None of the participants
had taken part in any previous Red Points surveys, so not to affect
potential results.

Question style
In many of the questions asked, our participants were able to select                       SURVEY SIZE            COUNTRY
                                                                                            345 PEOPLE              U.S.A.
more than one answer. This allows us to have a more complete
picture of their opinions and actions.

About the sample
To better understand the behaviour of babycare customers who
shop online, we selected the industry’s demographic. Based on
industry research, we selected U.S. customers, aged between 18-65,
all with chidren under five years old.
                                                                                            LANGUAGE               GENDER
Error Margin                                                                                 ENGLISH                ANY
Given there are 23.3 million children aged between 1-5 years old and
the average family size in the U.S.A. is 2.4 children we calcualte the
total market size is 9.7 million. On this basis our error margin is 5-6%.                        +
                                                                                               18

                                                                                             AGE RANGE         PARENTAL STATUS
                                                                                          18-65 YEARS OLD   CHILDREN 0-5 YEARS OLD

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Qualifying Question
When was the alst
time you bought a
baby product online?

This qualifying question ensures
that responses we recieve are from
our current target market. Any
respondent who had not bought a
baby product online in the last year
was rejected from the sruvey.

RED POINTS                             See our tech live   Fake Baby-Products   |   5
SECTION 1
Buying
behaviour

Shopping habits, social media,
and trust evaluation

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Question 1                                                                                       Buying behaviour
Can you please list             We can see a wide variety of heratige brands like silvercross, to more innovative items like Beaba. The
                                most popluar brand was Fisher-price, this is perahps unsurprising given the volume of product that they
which baby and infant           produce.
brands you buy or have
bought online?

             25+      25 - 20    20 - 15                15 - 10                10 - 5
Question 2                                                  Buying behaviour
When looking for baby
products, what factors
do you consider to be
the most important?
(1 being the most important,
7 being the least)

This question helps us establish what
exactly our sample are looking for in
a baby product and brand.
We can see, unsurprisingly,
that safety standards are the most
important factor, with style at
the bottom of the list.
Affordability comes in third place,
showing it as a motivating factor,
but not the main decision driver.

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Question 3                                                  Buying behaviour
When searching for
baby products online,
what are the primary
search methods you use?

Here we can see that Amazon is
overwhelmingly the go-to source for
most parents when shopping
for baby products. Google is also
the first search method for many
customers, which can give some
risky results. Interestingly,
23% of customers started their search
on Facebook, more than eBay,
suggesting that parents seek social
recommendations prior
to cold search.

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Question 4                                                  Buying behaviour
Would you consider
buying baby product online
via a social media post
or advert?

Supporting the findings in the
previous question, question 5
highlights shows that over 74% of our
participants have bought, or would
consider buying, a baby product
via social media. Only a small number
of those who had previously made
a purchase this way stated that they
would not do this again, suggesting
a negative experience.

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SECTION 2
Product evaluation

Confidence levels and evaluation
techniques

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Question 5                                                  Product evaluation
How do you evaluate
the trustworthiness
of a product/seller?
(On either social media or
traditional platforms i.e. Amazon)

The two most popular forms
of evaluating a seller are clearly
customer reviews and/or star ratings.
While this can be helpful, it is also
not a very reliable method as reviews
can easily be bought or manipulated.
Using the quality of the photos
as measure of authenticity is not
a reliable method either, as many
counterfeits use photos taken by the
authentic brand.

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Question 6                                                 Product evaluation
How confident are you
in your ability to identify a fake
baby product listing online?

Here we can see that the majority
of respondents feel confident
about their ability to identify fake
items online; 54% stated they were
confident. On the other hand,
only 9% of respondents said that
they were not confident to some
extent about this.

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Product Images                                                                   Product evaluation
The participants were then shown a series of images with accompanying text:
“These are the photos used by current listings, some selling counterfeits and some the real product. “

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Question 7                                                     Product evaluation
Considering these images,
how confident are you now
in your ability to identify
a baby product listing?

We can see a clear drop in confidence
levels, confident responses drop to
46% after viewing the images of the
fake products and non-confident have
doubled. This would indicate that there
is a section of our sample who believe
they are better at spotting counterfeits
than they are.

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SECTION 3

Experience
of Counterfeits

Experience of and reactions to
counterfeits online

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Question 8                                                      Experience
Have you ever
purchased a fake
baby or infant
product online?

While the vast majority of our
participants had never purchased a
fake baby product, just over 30% had
some experience of purchasing one.
From those 97 participants who had
purchased a fake item, 40% did so totally
unknowingly. Only 28% of those who
had purchased a fake did so on purpose.

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Question 9                                                 Experience
Where did you buy
the item from?

Only those participants who had
bought a fake were asked to
complete this question.
From those, we can see that Amazon
is the stand-out source of fake baby
items with 43% of fake baby items
purchased on the site. eBay was
a distant second with 14%, however
it was shortly followed by Wish.com
at 13%, highlighting the changing
nature of the ecommerce landscape,
as Wish.com is a relative newcomer
to the U.S. ecommerce sector.
Social media also proved important
with 16% coming from Facebook
and Instagram.

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Question 10                                                 Experience
What was your experience
of the fake baby product?

Despite the fact that only 28% of our
participants bought a fake knowingly,
over 70% were satisfied with the
product they received.
This disparity would suggest that
there are shoppers who accidently
buy a fake item but are actually
reasonably pleased with it.
Only 5% of respondents stated they
were very disappointed with the item,
suggesting that the product met their
requirements, despite its probable
lower production quality.

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Question 11                                                   Experience
What was your search
intent that led to you
buy the fake item?

Importantly, this question establishes
whether those who bought fake
items were searching for the real
product, regardless of whether they
were aware the item was a fake at
the point of purchase or not. We can
see that the vast majority were not
searching for a counterfeit. In fact,
only 9% explicitly started their search
with the intent of finding a fake.
The rest, including other responses,
happened upon the fake by chance
and were presumably motivated by
the lower price to make the purchase.

RED POINTS                                See our tech live     Fake Baby-Products   |   20
SECTION 4

Opinions
and reactions

Attitudes towards counterfeits and
effects on brands

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Question 12                                                 Opinions and reactions
How much would you
be willing to pay for a
fake baby product
of your desired brand?

Almost 50% of our sample would
be willing to buy a counterfeit baby
product if the price was sufficiently
discounted. Interestingly, the spread
across the discount options was
relatively even, provoking the idea
that for many there is such a thing
as too much discount and that
for counterfeiters there is a peak
discount point that will capture most
people. It would appear that price
is a big motivator for baby product
customers, despite the results of
question 3, with some customers
only looking for a 25% discount
for the RRP.

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Question 13                                                Opinions and reactions
How concerned are you,
if at all, about the problem
of fake baby products
in the market?

57% of our baby product customers
are concerned about the issue of
counterfeits. This would correspond
to the customer who would not buy
a fake baby product, regardless
of the price. A large proportion of
respondents believe that this issue
is too small to affect most people,
and are indifferent to the issue.
That said, only a small amount, 13%,
were not concerned at all, showing
that most people recognise it is a
cause for some concern.

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Question 14                                                  Opinions and reactions
Who do you think should
be primarily responsible
for taking fake items off
online channels?

As the big ecommerce platforms
tend to be the largest source
of counterfeits, it follows that
customers hold them responsible;
57% of our respondents feel that
it is the job of Amazon, eBay
and others to protect them while
shopping. The second most popular
choice was the brands themselves,
with 19% selecting this option.
This suggests that customers feel
they have the right to be protected
while shopping as only 8% felt it was
the job if the individual user to spot
and report fakes.

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Comments and other responses
From the comments and input of the ‘other’ options, our sample has provided
some interesting insights.

User #97 - In response to Q10                                    User #201 - In response to Q12
“I got a Puj Tub off the internet for a friend.                  “I looking for a kids toy and then i saw an ad on
A few days after giving her it she told me she thought           facebook for it and it took me to a shopping website.”
it was a fake because she had got another one
and the one I gave her felt cheap and didn’t work
so good - I was super embarrassed.”

User #106 - In response to Q4                                    User #11 - In response to Q6
“ Wish.com has low prices but I guess some of the stuff          “Fakespot.com helps me work out of the deal is too
I buy might not be real.”                                        good to be true”

User #81 - In response to Q12
“I just came across the item on the FB marketplace
when I was looking for a something else.”

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Findings and implications
Does price beat safety?                                                           Does price beat safety?
In question three, customers were asked to rate what aspects of                   Most of our respondents did not buy their counterfeits on purpose.
baby products they valued the most. Safety was the most important,                30% of our respondents had bought a fake at some point which, if
followed by production quality and then affordability. Given that price           representative of reality, is very high. Given that this survey has an
was only the third most important, it is strange that customers bought            error margin of 7% it is possible that the true number is lower. However,
fakes knowingly or were open to the idea of purchasing one if the                 this is still a significant number of customers who have had a direct
discount was enough.                                                              experience of counterfeit baby products.

                                                                                  From those who had purchased fakes, only a small number of baby product
It is fair to assume that counterfeits are made at a lower quality that
                                                                                  consumers did so knowingly (28%). The remaining 71% of customers who
the real items, and it is almost certain that these illegal products have
                                                                                  had purchased counterfeits did so with some doubt or simply in error.
not undergone any safety tests that official bodies usually conduct,
especially for those items made for babies. Despite this, 50% of our              From question 12, we can see that only 9% of our respondents who had
respondents reported they would be willing to purchase a fake if the              purchased counterfeits did so with the search intent of finding one.
item was sufficiently discounted.                                                 This mean that there are individuals who happened upon a counterfeit,
                                                                                  recognised it was not genuine, but continued with the purchase
Implications for baby product brands                                              regardless. The rest of the data from question 12 would indicate that
Consumers’ willingness to trust these products could suggest that there           counterfeit purchases are more a result of customer finding fake items
is a lack of awareness around the dangers associated with counterfeit             by chance than anything else.
items. Despite ranking price as the third most important factor, behind
safety in first place, in appears that consumers are, in practise, willing        Implications for baby product brands
to drop safety as the main priority if the bargain being offered is good          The risk of encountering counterfeits is high, but ultimately consumers
enough. Although this disregard for safety could be due to a lack of              are not actively looking for them. This means that brands stand a good
awareness about the dangers of counterfeits. Brands could limit this              chance of overting this by monitoring Google results (see question 4)
effect by launching educational campaigns and content, informing                  for keywords associated with their products, such as “cheap Tommee
their user base about the lower quality and poor safety standards                 Tippee cups”. By removing the most obvious counterfeit offers from
associated with fake products.                                                    Google and monitoring Amazon, it is likely that the number of counterfeit
                                                                                  purchases would decrease, as the research doesn’t suggest that
                                                                                  consumers are dedicated to finding fakes.

RED POINTS                                                            See our tech live                                                Fake Baby-Products   |   26
Findings and implications
Consumers are not good at spotting fakes                                         Baby product customers have some risky shopping habits
The questions from section 2, give us a clear insight into the ability of        While google is the primary search point for most internet users, when
baby product consumers to spot fake products online. It’s clear that for         looking for products and using certain keywords, like cheap or discount,
many, they firmly believe they are better than they are at identifying           it can lead users to sites selling counterfeits. This is an issue for most
counterfeits.                                                                    brands and doesn’t appear to affect baby products worse than any
                                                                                 other sector.
The images of both fake and real products, clearly affected our
respondents confidence levels. Confident responses after seeing the              Amazon should be a safe search method, but as we can see from the
images accounted for 46% of responses, and non-confident options                 results of question 10, the highest amount of counterfeits were sourced
accounted for 17%. There is a clear downward trend in confidence                 from there. However, baby product customers did report using social
levels for at least 15% of respondents, based on the changes from                media as a search method, with 31% selecting Facebook or Instagram.
question 7 to 8.                                                                 Many counterfeiters advertise their fake products on social media
                                                                                 networks, so buying from these channels can be risky if the customer
Question 6 on the other hand showed that consumers use very limited              is not 100% sure, and as we have seen baby product customers have
methods to evaluate the authenticity of a listing. For example, the most         limited and overestimated ability to spot fakes. This risky behaviour is
popular evaluation method was to use reviews and star ratings, followed          reinforced in question 5, where 74% of our sample stated they would
by images. While in most cases this is sufficient, many counterfeiters           buy, or already have bought, items via a social media post. In addition,
manipulate reviews and use high-quality photos. Evaluating product               when accounting for “other” options also, we can see that 10% of
price, domain and stock are often the most reliable methods of product           customer use forums and message boards, these tend to be rife with
evaluation.                                                                      counterfeiters posting links to their “discount products”.

Implications for brands                                                          Implications for brands
The evidence suggests a significant number of baby product customers             Policing Amazon and Google would be a safe option, as previously
are not adept at identifying fake items online. Brands could easily              discussed. With regards to social media, it would be important for baby
mitigate this risk by offering informative pages on their websites on            product brands to ensure they own their social media channels, have
how to identify a fake item and sharing these pages through their                active accounts and monitor for ads or post that sell fake items. A strong
social media. Although, spotting a fake item on Amazon would be a                presence on popular forums would also help avoid counterfeiters
trickier process due to the catalogue system used so brand protection            infiltrating them and selling their wares.
monitoring would be a more suitable option.

RED POINTS                                                           See our tech live                                                 Fake Baby-Products   |   27
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