Friday food for thought

It’s Friday…here’s some food for thought:

Probably the most interesting thing I read this week is Alessandra Galloni’s Wall Street Journal article, As Luxury Industry Goes Global, Knock-Off Merchants Follow. Ms. Galloni provides amazing detail on the morphing of the proprietor behind what sounds like a small, local watch retailer in Italy (”Mister Watch”) into an international knock-off kingpin. (You can read it here; a subscription is required).

The counterfeiting business is booming. If you don’t already believe that, you will after reading Ms. Galloni’s article. Consider this — according to the article, profits on counterfeit goods can reach $10 per $1 invested; a level that is higher than that realized by the companies being copied and equivalent to returns realized in the illicit drug trade.

Read that again…counterfeiting pays as much as dealing in illegal drugs.

The policy challenges of keeping up with this boom are amazing, particularly once you appreciate the international nature of the business (also described in great detail by Ms. Galloni).

Enjoy that while you watch the Super Bowl. Be sure to get your officially-licensed goods at the NFL Shop.