If the figures are anything to go by, the counterfeit market rakes in approximately $1.2 trillion a year, and this is forever increasing.
Instagram has always set its sights on becoming the leading app for fashion, but the menace of fake products on its platform is proving to be a huge impediment for the same. There is a comprehensive report from Ghost Data which has revealed the big counterfeit syndicate prevalent on the platform.
As per the study, since 2016, sale of counterfeit fashion has increased almost exponentially and had dealt a huge blow to Instagram’s ambitions. According to the study, the number of counterfeit accounts active on Instagram has risen by 171 per cent only in the last three years. In 2016, there were a total of 14.5 million posts of counterfeit products which saw a massive spurt in 2019, when as many as 64 million posts – accounting for a growth rate of 341% was posted.
Now, the worrying aspect is that this trend is only gaining momentum and it has “gained strong traction,” Ghost wrote in the report. “The online sale of counterfeit products and fake luxury goods has grown to a multi-billion dollar underground economy particularly eager to exploit Instagram’s success and features.”
If the figures are anything to go by, the counterfeit market rakes in approximately $1.2 trillion a year, and this is forever increasing. These new findings could not have come at a worse time for Instagram as it has already gone on record saying that it wants to be a top destination for shopping on the Internet.
Recently, it added a new checkout button which gave the users and potential customers to purchase products from the feed without having to exit the app. With this one feature, as per the analysts from Deutsche Bank, the Facebook-owned company could pull in $10 billion in revenue in 2021 alone.
The report categorically states that these dubious products are no longer confined to any particular corner, but are present in Instagram stories, which are present for 24 hours. Also, these stories leave no trail but have enough visibility for the users to hop on to them and make a transaction.