Authentication Solutions for Addressing Counterfeiting and Supply Chain Leakage in Danish Premium Brands

Topic

This thesis investigates how Danish premium brands perceive and respond to the growing threats of counterfeiting and grey market leakage. It focuses on commercial and industry perspectives, examining the challenges and strategic opportunities surrounding digital authentication. Because no one-size-fits-all solution exists, authentication strategies must be tailored to each brand’s unique supply chain, market positioning, and customer expectations. The study reveals how Danish brands make decisions under uncertainty and navigate the trade-offs between cost, control, and consumer trust.

Relevance

Counterfeiting and grey market activities remain critical challenges for Danish premium brands, threatening their exclusivity, supply chain integrity, and long-term brand equity. Importantly, these activities result in significant financial loss—Danish companies face an estimated DKK 7 billion (EUR 940 million) in direct annual losses from counterfeiting alone (DKPTO, 2022). For practitioners, understanding how to adopt flexible, brand-appropriate authentication strategies is essential for maintaining competitiveness and protecting value in an increasingly complex global market.

Results

The research finds that Danish premium brands experience different levels of risk and impact depending on product type, design visibility, and industry structure. While fashion and luxury accessories face high exposure to grey markets, furniture brands are more affected by large-scale counterfeiting of iconic designs. Participants cited high implementation costs, unclear ROI, and consumer disengagement as major adoption barriers. Still, many recognized the strategic potential of authentication, particularly when solutions align with aesthetic expectations and reinforce trust in authorized retail channels.

Implications for Practitioners

• Brands should pilot authentication tools that balance security with aesthetic design.
• Strategic enforcement of distribution contracts helps prevent grey market leakage.
• Authentication tools should be evaluated not only for technical effectiveness but also for user experience and aesthetic integration.
• Third-party validation and governmental or industry endorsement can enhance trust in new technologies.
• Companies should develop internal understanding of IP and authentication options to support strategic decision-making.

Methods

This study followed a qualitative, exploratory research design using semi-structured interviews with professionals from Danish premium brands and external experts in anti-counterfeiting and authentication. Participants were selected via purposive sampling (Robinson, 2014), targeting those with direct experience in brand protection or supply chain integrity. Thematic analysis was conducted using Braun & Clarke’s (2006) six-phase framework and structured through the Gioia methodology (Gioia et al., 2012), enabling the emergence of grounded insights. Transcripts were coded with Taguette software to ensure consistency, transparency, and rigor throughout the analysis.

References

• Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa
• Gioia, D. A., Corley, K. G., & Hamilton, A. L. (2012). Seeking qualitative rigor in inductive research. Organizational Research Methods, 16(1), 15–31. https://doi.org/10.1177/1094428112452151
• Robinson, O. C. (2014). Sampling in interview-based qualitative research: A theoretical and practical guide. Qualitative Research in Psychology, 11(1), 25–41.
• DKPTO. (2022). Danish designers must protect themselves better against copycats. https://www.dkpto.org