Ferragamo (MI:SFER) Adds Microchips In Shoes & Handbags To Halt Counterfeits

Counterfeits have been around for ages, devaluing works of art and luxury masterpieces in typically cheap copies and poorly reinterpreted versions of its original.

In one particular area of the counterfeit industry, the copies are instead excellently made and may easily pass off for an original, to the fairly undiscerning eye.

The counterfeit industry, despite its shady reputation, is rather thriving. According to World Trademark Review, the market for copies and piracy makes $500 billion to $600 billion yearly, or five to seven per cent of world trade on estimate.

In a recent move to combat counterfeits, Salvatore Ferragamo will be adding microchips in its shoes and some of its bags. In addition to curbing copycats, the move is reportedly a strategy to help up its resale value by proving authenticity.

“The people who can afford to spend thousands on a purse often get tired of them after 6 months and tend to sell them on eBay,” said Greg Furman of the Luxury Market Council New York. “More and more brands are realizing that there is resale value to their products that is lost on eBay.”

These microchips are reportedly resistant to imitations and are not visible in the shoe or bag.

For those who fear that the microchips are a precedent to some form of tracking, relax the chips can only be read at a maximum distance of 4 cm.

Ferragamo’s battle with counterfeits has been a long and tenacious, having seized over 12,400 illegal items valued at a total of $17-M in Y 2015.

(http://www.ferragamo.com)

Stay tuned…

HeffX-LTN

Paul Ebeling

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