Indian consumer brands: The counterfeit advantage

Business Recorder reports that Indian consumer brands still reach Pakistani shoppers through informal channels despite the suspension of formal trade, with copies made locally and sold openly in large wholesale hubs. Karachi's Jodia Bazaar and Lahore's Shah Alam Market are reportedly stocking packaged goods that closely resemble established Indian brands in personal care goods, hair colourants, tea and confectionery. The article's main concern is that staying outside the formal system gives illicit producers a cost advantage.

A counterfeit maker does not carry costs for trademarks, quality control or product development, and smuggled items can slip past import duties and taxes. The article says these savings let illicit sellers undercut compliant firms while targeting the same buyers. A recent assessment, as cited by the paper, puts lost tax income across five illicit sectors at about Rs751 billion a year, with tobacco and petroleum products taking the largest share.

The article treats illicit trade as an industrial policy problem, since high taxation, weak investment and poor competitiveness are linked rather than separate issues. For multinational consumer companies, the brand is a major asset, and the article warns expected returns fall when trademarks can be copied easily. Customs has intensified action, but the article argues that border checks and occasional raids merely displace the issue, and it calls for tracing producers, better coordination and more responsibility for online marketplaces.