With this new edition of the State of the Fake report, we are again sharing our proprietary data along with the rare insights we garner from hundreds of thousands of AI-driven evaluations performed on products from around the world with the goals of building awareness about the murky world of counterfeits and what Entrupy, along with the industry, is doing to combat it.
In 2023, Entrupy authenticated over $1.4B worth of products and the counterfeit problem only seems to be getting worse in specific business segments. Just under 9% of all items that Entrupy authenticated were not certified as Authentic (referred throughout this report as “Unidentified”). This represents an increase in the Unidentified rate of 0.8% since 2022, and is a sign that the quality and quantity of counterfeits are increasing and filtering into legitimate businesses.
With our expansion into authenticating high-end sneakers, we are discovering a different and curious culture where there is lower trust in the need for authentications, but higher value assigned to authenticated sneakers. We have spent a considerable amount of time collecting data on fake sneakers and it is shocking how good the counterfeits are. Sneaker counterfeiters even tend to have post-sale support where they ask for feedback on the quality of the counterfeits, which, curiously, the trademark owners seldom do.
Globally, with the explosion of live-shopping, large-scale digital marketplaces and more efficient trans-national wholesaling, we are seeing an increase in counterfeits specifically among pawn networks, with their unidentified rates going up an alarming 2%. However, the numbers across have been stable and even reducing reasonably among all other business types, validating the work we're doing as an industry to deter counterfeit sales.
While the acceptability of dupes might be on the rise, having an on-demand, on-premise authentication solution is a huge deterrent for most consumers looking to hoodwink someone. And I'd like to believe that we play a part in that. Our work now includes expanding our distribution globally and enabling support for more products and categories at large. As we scale, our core mission of providing the most accurate result in the quickest way possible doesn't change. We thank our customers and partners for keeping us focused, honest and competent. Thank you!
Vidyuth Srinivasan
Chief Executive Officer, Entrupy Inc.
worth of inventory authenticated
almost perfect accuracy
countries authenticating with Entrupy
reference images training the smartest AI
Globalization has strengthened counterfeit markets. Connecting a supply chain on one continent with another supply chain across the globe is now easier than ever before. Networks trafficking fakes between Paris, Hong Kong, Ankara, and Moscow are becoming more organized. Not only are operations advancing, the quality of counterfeit luxury goods is improving. Even trained experts have a hard time distinguishing real from fake.
The RealReal still under fire from Chanel
Ongoing Legal Battles: The luxury resale platform The RealReal continues to face legal scrutiny from Chanel over allegations of selling counterfeit items. This ongoing litigation underscores the complexities of the second-hand luxury market.
Intellectual property trial not in the bag for Hermès's Birkin
Legal Disputes: Hermès is embroiled in an intellectual property trial concerning its iconic Birkin bag. The case highlights ongoing challenges in defending the brand against sophisticated counterfeit operations.
Quiet luxury label Loro Piana plagued by counterfeits
Quiet Luxury at Risk: The Italian luxury label Loro Piana is experiencing a surge in counterfeits, particularly on major resale platforms. The brand's understated design philosophy makes it a target for counterfeiters seeking to exploit its reputation.
Putin weaponizes counterfeit luxury goods amid Ukraine war
Geopolitical Use: Amid the Ukraine war, reports indicate that Russian authorities are using counterfeit luxury goods as a tool to undermine Western brands and economies, leveraging the trade of fake products to fund operations and evade sanctions.
Credible fakes pose real problems for Hermès
Hermès Issues: Hermès faces challenges from "credible fakes" that are nearly indistinguishable from real products. Counterfeiters are using high-quality materials and craftsmanship, complicating the brand's efforts to protect its intellectual property.
Farfetch faces growing scrutiny over counterfeit goods
Growing Concerns: The luxury resale platform Farfetch is facing increasing scrutiny over the authenticity of goods sold on its site, as counterfeit concerns continue to escalate in the global luxury market.
Counterfeiters know this is the easiest way for legitimate brands to find fakes online, so they are careful to use listing titles and product descriptions that avoid these words entirely.
With image recognition being more widely available, many counterfeiters opt to avoid using brands' own product images in their listings, as they are so easily found and used to verify the product as fake.
To counter this, counterfeiters will often take their own photos of the products for sale, while obscuring the logo to make it harder for AI to find it.
The influence of these sellers has become so significant that it has led to the creation of the hashtag #RepTok, which stands for Replica-Tok. Despite violating TikTok's policy on counterfeit goods, the hashtag has amassed over 120 million views. The videos aim to generate substantial interest, directing viewers to intermediary platforms such as public spreadsheets and private messaging apps like Discord, Snapchat, and WhatsApp.
These intermediaries then help users navigate listings on online marketplaces like DHgate and Pandabuy, where the listings are intentionally vague to evade detection.
Creating fake positive reviews is now easy and scalable, thanks to free AI tools like Google's Bard, and ChatGPT. This complicates the process for consumers trying to identify legitimate products.
Tools like Midjourney and DALL-E enable counterfeiters to produce convincing fake product images, posing a growing threat to brands. While current free versions have limitations, advancements are expected to lead to widespread use of these images.
Digitally created personas, such as Lu do Magalu, are gaining popularity and can mislead consumers, especially Gen Z. This trend emphasizes the need for brands to adapt their protection strategies and educate consumers about potential deceptions.
In total, 25824 interviews were conducted between 30 January 2023 and 15 February 2023 with residents aged 15 and above, in all EU Member States.
say that they have a rather good or very good understanding of the concept of intellectual property.
have wondered whether something they have bought is a genuine product or a counterfeit.
of Europeans believe counterfeit goods are a threat to health and safety & to the environment.
of Europeans believe buying counterfeit goods ruins businesses and jobs.
of Europeans believe counterfeit goods support criminal organisations.
find it acceptable to buy counterfeit goods when the price of the original product is too high.
agree that it is acceptable to buy counterfeit goods because everybody does it.
of consumers aged between 15 & 24 have intentionally purchased counterfeit products in the past 12 months.
Bulgaria has the highest rate of self-reported counterfeit purchases in the entire EU.
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Dollar value* of Authentic and Unidentified items, 2017 - 2023
Authentic vs. Unidentified items, 2023
Click the chart to explore more about brands.
2023 value
2022 value
MOST AUTHENTICATED MATERIAL
MOST AUTHENTICATED STYLE
AVERAGE RESALE PRICE
2023 value
2022 value
MOST AUTHENTICATED MATERIAL
MOST AUTHENTICATED STYLE
AVERAGE RESALE PRICE
2023 value
2022 value
MOST AUTHENTICATED MATERIAL
MOST AUTHENTICATED STYLE
AVERAGE RESALE PRICE
2023 value
2022 value
MOST AUTHENTICATED MATERIAL
MOST AUTHENTICATED STYLE
AVERAGE RESALE PRICE
2023 value
2022 value
MOST AUTHENTICATED MATERIAL
MOST AUTHENTICATED STYLE
AVERAGE RESALE PRICE
By total number of Entrupy authentications performed in each year
By proportion of Entrupy authentications with unidentified results
2023 UNIDENTIFIED %
2022 UNIDENTIFIED %
MOST unidentified MATERIAL
MOST UNIDENTIFIED STYLE
AVERAGE RESALE PRICE
2023 UNIDENTIFIED %
2022 UNIDENTIFIED %
MOST unidentified MATERIAL
MOST UNIDENTIFIED STYLE
AVERAGE RESALE PRICE
2023 UNIDENTIFIED %
2022 UNIDENTIFIED %
MOST unidentified MATERIAL
MOST UNIDENTIFIED STYLE
AVERAGE RESALE PRICE
2023 UNIDENTIFIED %
2022 UNIDENTIFIED %
MOST unidentified MATERIAL
MOST UNIDENTIFIED STYLE
AVERAGE RESALE PRICE
2023 UNIDENTIFIED %
2022 UNIDENTIFIED %
MOST unidentified MATERIAL
MOST UNIDENTIFIED STYLE
AVERAGE RESALE PRICE
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Goyard |
Gucci | Dior |
Chanel | Prada |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Goyard |
Prada | Prada |
Chanel | MCM |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Goyard |
Chanel | Celine |
Gucci | Loewe |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Goyard |
Gucci | Dior |
Chanel | Loewe |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Goyard |
Chanel | Hermes |
Gucci | MCM |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Hermes |
Gucci | Celine |
Chanel | Goyard |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Loewe |
Gucci | Dior |
Chanel | Saint Laurent |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Loewe |
Chanel | Goyard |
Gucci | Dior |
Most Authenticated | Highest Unidentified |
---|---|
Prada | Goyard |
Louis Vuitton | Prada |
Balenciaga | Dior |
Most Authenticated | Highest Unidentified |
---|---|
Chanel | Coach |
Louis Vuitton | Goyard |
Dior | Loewe |
Most Authenticated | Highest Unidentified |
---|---|
Coach | Goyard |
Louis Vuitton | Givenchy |
Gucci | MCM |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Chloe |
Chanel | Loewe |
Gucci | Celine |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Goyard |
Chanel | Celine |
Gucci | Saint Laurent |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Goyard |
Chanel | Loewe |
Gucci | Celine |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Goyard |
Chanel | Saint Laurent |
Gucci | Balenciaga |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Goyard |
Chanel | Loewe |
Gucci | Hermes |
Most Authenticated | Highest Unidentified |
---|---|
Chanel | Valentino |
Louis Vuitton | Dior |
Gucci | Goyard |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Loewe |
Chanel | Goyard |
Hermes | Chloe |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Goyard |
Gucci | Chloe |
Chanel | Balenciaga |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Goyard |
Gucci | Dior |
Coach | Loewe |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Goyard |
Gucci | Prada |
Chanel | Dior |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Balenciaga |
Gucci | Goyard |
Chanel | Hermes |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Givenchy |
Gucci | Loewe |
Chanel | Burberry |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Goyard |
Gucci | Dior |
Chanel | Loewe |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Loewe |
Gucci | Goyard |
Chanel | Coach |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Goyard |
Chanel | Prada |
Gucci | Saint Laurent |
Most Authenticated | Highest Unidentified |
---|---|
Coach | Dior |
Louis Vuitton | Goyard |
Gucci | Prada |
Most Authenticated | Highest Unidentified |
---|---|
Louis Vuitton | Loewe |
Gucci | Bottega Veneta |
Chanel | Dior |
Luxury brands have heard consumers loud and clear—almost every luxury brand incorporated more sustainable practices. They are committed to product circularity and ethical supply chains.
The big names aren't losing profits to the counterfeit market without a fight. More than ever before, luxury brands are supporting counterfeit raids, using protective tech, and educating consumers on savoir faire.
Buyers are searching for iconic styles from another time—especially the 90s and early 00s. The best place to find those vintage pieces is the resale market.
Brands seem happy to give consumers what they want: more inclusive products that live beyond the trends of the season. Luxury is a better world with you in it.
Luxury brands have heard consumers loud and clear—almost every luxury brand incorporated more sustainable practices. They are committed to product circularity and ethical supply chains.
The big names aren't losing profits to the counterfeit market without a fight. More than ever before, luxury brands are supporting counterfeit raids, using protective tech, and educating consumers on savoir faire.
Buyers are searching for iconic styles from another time—especially the 90s and early 00s. The best place to find those vintage pieces is the resale market.
Brands seem happy to give consumers what they want: more inclusive products that live beyond the trends of the season. Luxury is a better world with you in it.
We kicked off summer 2023 with the launch of the Entrupy Sneakers App — offering authentication support for Nike & Adidas brands. Since then, we’ve collected millions of data points & can pinpoint industry authentication trends on a global scale! This summer we’ve expanded sneaker support for some of the hottest luxury sneaker brands: Dior, Christian Louboutin, Louis Vuitton, and more. This luxury sneaker dataset will tell its own unique story about counterfeits & trends in the market.
2023 UNIDENTIFIED % (BRAND)
MOST POPULAR SERIES
2023 UNIDENTIFIED % (SERIES)
AVERAGE RESALE PRICE (VIA ARBIT)
2023 UNIDENTIFIED % (BRAND)
MOST POPULAR SERIES
2023 UNIDENTIFIED % (SERIES)
AVERAGE RESALE PRICE (VIA ARBIT)
2021
2022
2023
2023 UNIDENTIFIED % (BRAND)
Most popular brand
MOST POPULAR SERIES
average resale price (via arbit)
2023 UNIDENTIFIED % (BRAND)
Most popular brand
MOST POPULAR SERIES
average resale price (via arbit)
2023 UNIDENTIFIED % (BRAND)
Most popular brand
MOST POPULAR SERIES
average resale price (via arbit)
2023 UNIDENTIFIED % (BRAND)
Most popular brand
MOST POPULAR SERIES
average resale price (via arbit)
2023 UNIDENTIFIED % (BRAND)
Most popular brand
MOST POPULAR SERIES
average resale price (via arbit)
2023 UNIDENTIFIED % (BRAND)
Most popular brand
MOST POPULAR SERIES
average resale price (via arbit)
Most popular brand
Most popular brand
Most popular brand
Most popular brand
Most popular brand
Most popular brand
Most popular brand
Most popular brand
Most popular brand
Most popular brand
2023 UNIDENTIFIED %
BRAND
Average resale price (via arbit)
2023 UNIDENTIFIED %
BRAND
Average resale price (via arbit)
2023 UNIDENTIFIED %
BRAND
Average resale price (via arbit)
2023 UNIDENTIFIED %
BRAND
Average resale price (via arbit)
2023 UNIDENTIFIED %
BRAND
Average resale price (via arbit)
2023 UNIDENTIFIED %
BRAND
Average resale price (via arbit)
Brands that have strong ties to streetwear such as Balenciaga & Gucci continue to have a strong impact and increased presence in the market. These collaborations boosted resale value in 2023 and further blurred the line between streetwear and luxury fashion.
Nike expanded its partnerships to include dance and announced the creation of shoes specifically designed for breakdancers competing in the Paris 2024 Olympics. In the growing sneaker industry, we will see more brands initiate strategic partnerships for expanded reach & impact.
Shows like Succession brought on an obsession for “quiet luxury” & “old money” aesthetics. Sneaker and streetwear trends were influenced drastically.
The Adidas Confirmed App expanded its features in 2023 to include more engagement with the resale community. These features make it easier to connect with sneakerheads who are active in both primary and secondary markets—providing a platform for exclusive releases that would later see high resale value.
Brands that have strong ties to streetwear such as Balenciaga & Gucci continue to have a strong impact and increased presence in the market. These collaborations boosted resale value in 2023 and further blurred the line between streetwear and luxury fashion.
Nike expanded its partnerships to include dance and announced the creation of shoes specifically designed for breakdancers competing in the Paris 2024 Olympics. In the growing sneaker industry, we will see more brands initiate strategic partnerships for expanded reach & impact.
Shows like Succession brought on an obsession for “quiet luxury” & “old money” aesthetics. Sneaker and streetwear trends were influenced drastically.
The Adidas Confirmed App expanded its features in 2023 to include more engagement with the resale community. These features make it easier to connect with sneakerheads who are active in both primary and secondary markets—providing a platform for exclusive releases that would later see high resale value.
BUSINESS TYPE | inventory source | TYPICAL RISK PROFILE | 2023 UNIDENTIFIED % | 2022 UNIDENTIFIED % |
---|---|---|---|---|
C2C MARKETPLACE |
Items often come from an individual's personal collection, which may have been purchased from other resellers and/or thrift stores to be "flipped" for profit. |
Marketplaces are implementing more aggressive Anti-Counterfeit enforcement measures that are dramatically reducing fakes across their channels. |
5%
|
4.5%
|
PAWN |
Items are purchased from individuals at the point of sale. |
High: Merchandise coming from individual consumers with untrained salespeople at intake significantly increases the risk of counterfeits. |
15%
|
13%
|
OFFLINE RESELLER |
Items are often purchased outright from individual consumers who may or may not have an established reputation. |
Medium: Merchandise coming directly from consumers and nonexpert sales people increase the risk of counterfeits entering the supply chain. |
10.1%
|
10.1%
|
ONLINE RESELLER |
Items often come from a stable and reliable sources such as consignors and other resale companies, with whom the reseller has a history of transacting. |
Low: Unreliable sources are generally eliminated from the supply chain before they can exert negative impact. |
7.7%
|
7.7%
|
WHOLESALER |
These specialized players have strict rules for intake and sourcing, items usually come from reputable sources that may include other businesses, auctions and marketplaces. |
Very Low: High levels of expertise & experience keep "bad actors" from penetrating the supply chain. |
1.4%
|
1.6%
|
We believe that while many consumers are drawn to counterfeit products for financial savings, the desire for pleasure and an enhanced shopping experience is an even stronger motivator. This insight challenges the usual focus on economic reasons alone. To effectively combat counterfeit purchasing, strategies must address these hedonic motivations. By highlighting the psychological rewards of avoiding counterfeits—such as superior quality, craftsmanship, and the satisfaction of owning a genuine product, we can shift consumer behavior and help reduce counterfeit purchases by making the counterfeit shopping experience less appealing.
Handling counterfeit listings effectively is crucial in 2024, as the proliferation of fake goods poses significant threats to brand integrity and consumer trust. Brands should implement enhanced digital monitoring systems that utilize AI to track and identify counterfeit listings across online marketplaces and social media platforms. This proactive approach allows brands to act swiftly against unauthorized sellers and remove fake products from circulation.
Brands should adopt a proactive legal strategy by pursuing counterfeiters through litigation and collaborating with law enforcement agencies to conduct raids on counterfeit operations.
Finally, fostering a community of vigilant consumers can help in the fight against counterfeiting. Encouraging customers to report suspected counterfeit listings through dedicated channels empowers them and reinforces the brand’s commitment to authenticity.
This initiative addresses the growing demand for pre-loved luxury items while reinforcing the authenticity and value of these products. It’s a win-win for both brands and consumers. Ignoring older products already in the market is leading to market cannabilization: where companies are losing sales due to an introduction of a new product that displaces one of its older products. The cannabilization of existing products results in no increase in the company's market share, despite sales growth for the new products. This can ultimately hurt companies' bottom line and therefore should be avoided.
Social commerce will only continue to rise in popularity in the coming years. Consumers' buying habits are heavily influenced by social media: 68% of counterfeit purchases on social media are made via Facebook.
However, the issue right now is that there are a lot of unauthorized sellers on social media; only authorized sellers should be able to maintain a presence there.
In order to ensure that there are only authorized sellers, social media networks should establish an authorized reseller program, ie. something similar to TikTok Seller, or partner with a third-party vendor, like Entrupy.
The governments can aid in setting up kiosks in airports, key retail locations or malls where consumers can bring products for immediate verification using advanced authentication technology. It’s a convenient way for everyone to access authenticity. They can also organize temporary pop-up clinics in accessible areas where experts offer on-the-spot product authentication and educational workshops on counterfeiting.
Establishing reward programs for individuals who report counterfeit products or suspicious activities (especially since they are linked to crime and terrorism) can encourage more people to participate in combating counterfeiting. This approach can be implemented through collaboration with law enforcement and industry groups. Providing legal protection and support for whistleblowers who expose counterfeiting operations can help uncover and dismantle counterfeit networks. Governments and industry associations can create frameworks to protect and reward whistleblowers.
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Europe: Chanel bags; Vintage experts struggling to tell the originals from the fakes | Glitz.Paris (26 Jan, 2023) [link]
Russia, Turkey: Putin weaponises counterfeit luxury goods amid Ukraine war | Glitz.Paris (9 Feb, 2023) [link]
China, France: Credible fakes pose real problems for Hermès | Glitz.Paris (23 Feb, 2023) [link]
France: Intellectual property trial not in the bag for Hermès's Birkin | Glitz.Paris (16 Mar, 2023) [link]
United States: The RealReal still under fire from Chanel | Glitz.Paris (7 Sept, 2023) [link]
Italy: Quiet luxury label Loro Piana plagued by counterfeits | Glitz.Paris (12 Oct, 2023) [link]
Europe, France: Counterfeiters hone in on luxury | Glitz.Paris (14 Dec, 2023) [link]
France: Training schemes for luxury workers are not quite what they seem | Glitz.Paris (9 Mar, 2023) [link]
Intellectual Property Rights (IPR) Seizures | U.S Customs and Border Protection (2023) [link]
The Truth Behind Counterfeits | U.S Customs and Border Protection (2023) [link]
Panerai banks on the blockchain as a counterfeit solution. Plus, how Web3 plans to leverage the legacy of Keith Haring | Jing Daily (24 Sept, 2023) [link]
Luxury house Patou launches AI-powered authentication system | LSN Global (2 May, 2023) [link]
Bulgari sues online stores for selling 'counterfeit Bvlgari products' | WestLaw Today (10 Feb, 2023) [link]
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Brunner about Product Piracy Report 2023: Strong customs organisation protects both consumers and the economy | Federal Ministry Republic of Austria (1 Apr, 2024) [link]
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Entrupy Becomes an Official TikTok Shop Authenticator | WWD (18 Oct, 2023) [link]
Meta and Christian Louboutin File Joint Lawsuit Against Counterfeiter | Meta News (16 Nov, 2023) [link]
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NEW ADIDAS STUDY FINDS 92% OF WOMEN ARE CONCERNED FOR THEIR SAFETY WHEN THEY GO FOR A RUN | ADIDAS (10 Mar, 2023) [link]
ADIDAS CELEBRATES NEXT GEN ICONS OF THE GAME, ALESSIA RUSSO, LENA OBERDORF AND MARY FOWLER, AHEAD OF THE FIFA WOMEN’S WORLD CUP AUSTRALIA & NEW ZEALAND™ | ADIDAS (12 Jul, 2023) [link]
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ADIDAS LAUNCH NEW LABEL, SPORTSWEAR, WITH ACTRESS, ADVOCATE, PRODUCER AND STYLE ICON, JENNA ORTEGA | ADIDAS (2 Feb, 2023) [link]
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Prada Fall 2023 Ready-to-Wear | Vogue Business (23 Feb, 2023) [link]