Modeling auto spare parts market with the account of counterfeit

Received: September 24, 2015
Accepted: September 24, 2015
Authors: 

Tkachev M.M.

National Technical University "Kharkiv Polytechnic Institute"

The general situation and major trends in the global market of counterfeit goods are considerd. A study of one of its important segments - automotive market of counterfeit spare parts is performed. The basic sources of illegal products on the market are analyzed. This is part of the original products produced by official manufacturers that the offenders receive for implementing shadow schemes; part of the original production, which is transferred to manufacturers place on the market or to a particular market segment without their permission; auto parts and accessories made by unofficial producers in violation of the holders’ exclusive rights (fake brands, manufacturing products under a different name);  parallel imports of auto parts and accessories, which represent the original products imported to the national market of Ukraine without permission to use logos; direct copying some independent automotive products of official car manufacturers that they sell with their own name.

A graphical model of auto spare parts market with the account of counterfeit goods is presented. It includes three main functions: the function of the demand curve for spare parts; the function of the total supply of spare parts on the market (including counterfeit products; supply of components). The interaction of these functions allows the author to find the value of the maximum potential economic loss for the original producers (earnings of the sellers of counterfeit products). The main scenarios of possible changes are: change in the demand curve position; change of the original parts supply curve position; change of the total supply curve with the account of counterfeit.

The proposed scientific and methodical approach to modeling the auto parts market with the account of counterfeit allows determining potential losses suffered by legal owners due to exclusive rights violations.

Basic methodological approaches, the implementation of which leads to a decrease in counterfeit goods on the domestic auto parts market are analyzed. First, the prices on the original auto parts may in some way affect the target market. This effect may be defined as a change of the supply curve (it will shift down). Second, it is the legislative strengthening of violators’ punishment (criminal, financial, moral etc.). As a result, this will reduce illegal products supply in the auto parts market. Third, it is strengthening of the socio-psychological component of the marketing program of the original products producers and the state. Consumers of counterfeit parts must be aware of possible negative consequences of their use, and it is necessary to convince them of the need to give priority to better, more reliable and safer products.

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