Where did my cake go? The real losers in counterfeits

Last week in Bangkok I went to a huge mall with around 7 floors, all of them filled with fake stuff. Considering that some brands can get a benefit from this, technology brands are damaged by counterfeits.
When I went to the technology’s floor the first thing I noticed was that every store had fake Beats. Headphones and speakers from that brand seems to be a must have in there. As a matter of fact, they had all the varieties of colors and models.
The problem with these practices becomes when these stalls sell the exactly same models than the ones you can find in an Apple Store. And since sports brands can be benefited, technology’s companies as Beats notice the lack of income counterfeits produce.
Maybe your first reaction is, how can is even possible that a brand makes more money when there are counterfeits in the market?
In the book Invisible Influence, Jonah Berger explains these benefits. Let’s put Nike as an example. In that mall you could see a lot of Nike sneakers. Most of them are really good fakes. Even though they copy the new models as fast as possible, Nike is still benefited from it. What makes that so good is that it decreases the life cycle of their products, so they can launch and launch new models faster than ever before. That’s good for them.
However, the downside of this situations is for technology companies. Their products don’t have the same life cycle as Nike shoes have, so counterfeits damage their income balance.
Okay, the good point Beats had right now is the sales power in the Apple Stores. Nonetheless, that doesn’t mean they don’t notice the counterfeits activities. If they could launch more models as Nike does, they’ve got the benefit from this. But they can’t.
Comparing speakers with headsets is like companies apples with oranges. But, as The Law of Line Extension—from The 22 Marketing Laws—explains the risks of increase the number of product’s lines, if you can’t increase these number of products in your line or decrease the life cycle of them, clearly counterfeits will take a piece of your cake.
It’s something that you can’t control, but as everything in this life, someone gets the benefit of it and someone pays the price.