or manufacturers of premium cosmetics, the market is getting tougher. Euromonitor International says in a recent report that they have more to worry about than the grey market - the legitimate and cheaper copycats. The worldwide premium cosmetics market has been valued by Euromonitor at $57 billion in 2004. With aspirations rising and not every consumer being able to afford the 'real thing', they are more than happy to settle for cheaper, good-quality alternatives. This has created a large market for status-based personal care products at a lower price, generating sustained consumer demand for counterfeit cosmetics and toiletries.

According to the market intelligence firm, China is one of the largest markets for premium personal care products in terms of per capita expenditure. However, counterfeits abound. Personal care giant Procter & Gamble (P&G;) estimates that it loses 10 per cent of its revenue in China due to counterfeit products. ... more