After the opening of the East European markets, a well-known cosmetics manufacturer took the chance to set up its own manufacturing and distribution structures. With success. In the first four years production and sales increase continuously, even though the foreign subsidiary wasn’t yet making profits because of high investment costs. The senior management of the company assumes that the desired return on investment will soon kick in with the rising popularity of the brand, increasing shares of the market and also increasing economic power of the East European population. But in the following two years sales stagnate and the company is put more and more under pressure due to the missing profit.
Since there is no economic justification for that lack of success, the senior management asks Prevent to investigate. The solution is quickly found. Faked products block the market. Astonishingly good quality copies of the premium brands of the cosmetics’ company are being sold at dumping-prices. The complex and comprehensive research Prevent conducts in situ, also leads to the identification of the product pirates. Now legal measures can be taken.









