BOOTLEG PRODUCTS IMPACTS ON THE GHANAIAN MARKET POST COVID-19

 Over the recent half-decade, there has been a concerning surge in the trade of counterfeit or fake goods, surpassing the sales of genuine, authentic products. This shift in consumer behavior is particularly evident in the statistics observed up to the year 2023, where the global expenditure on bootleg or counterfeit products has seen a remarkable uptick, registering an increase of $487.6 billion. This trend indicates a substantial and widespread preference for, or perhaps unwitting acceptance of, imitation products over their authentic counterparts, presenting challenges not only in terms of economic impact but also in issues related to intellectual property, consumer rights, and market integrity.

Pricing is a main factor of purchasing bootleg products. The original price of a genuine Hermes bag can range from thousands to tens of thousands of dollars, while a fake one may be significantly cheaper. Most people prefer to buy bootleg products due to economic hardship because these products cost lesser than the original product to save up some money.

In a detailed discussion with Mr. Arthur Barnes Cyril, an official from the Ghana Revenue Authority (GRA), he shed light on the issue of tax evasion related to bootleg goods, categorizing them under the umbrella of the "black market." This classification is attributed to the fact that these goods either enter the market through smuggling or circumvent the proper processes and channels, thereby avoiding government taxation.

The adverse impact of bootleg products is particularly felt by our local authorities due to a notable scarcity of manufacturing facilities. Local factories, Mr. Cyril emphasized, encounter significant challenges in competing with these illicit products, which flood the market at lower prices. This situation creates an uneven playing field, making it difficult for local industries to thrive and contribute to the economic landscape.

As part of a strategic recommendation, Mr. Cyril advised entrepreneurs to consider formal importation, adherence to tax obligations, and legitimate sales practices. Instead of opting for the establishment of local factories, which may face challenges in the face of unfair competition, he suggests importing, paying taxes, and engaging in ethical selling practices. This approach, he believes, not only contributes to a more transparent and regulated market but also fosters an environment where entrepreneurs can thrive without compromising the integrity of the local manufacturing sector. In essence, it encourages a sustainable business model that aligns with both legal and ethical standards, promoting economic growth and stability.