Core Viewpoint - The emergence of "ghost online stores" poses a significant threat to market order, as they lack physical addresses, real contact information, and after-sales support, leading to consumer rights violations and unfair competition [1][2] Group 1: Issues Identified - 14 online stores were investigated for infringing on the "Pang Dong Lai" trademark, with 10 found to be operating without a public address, and 8 of these being particularly elusive [1] - "Ghost online stores" utilize false advertising, low-price temptations, and fake reviews to attract consumers, disappearing after transactions are completed [1] Group 2: Proposed Solutions - A closed-loop system should be established involving platform accountability, regulatory collaboration, and consumer participation to effectively address the issue of "ghost online stores" [1] - Platforms must take responsibility for verifying merchant information, as current practices are often superficial, allowing illegal operators to thrive [1] - The recent draft regulation by the State Administration for Market Regulation mandates that platforms must label stores with false addresses or unreachable contact information, providing a framework for addressing these issues [1] Group 3: Enforcement and Consumer Guidance - Regulatory enforcement should be tailored to specific industry characteristics, with particular focus on supply chain traceability in the food sector, verification of registration information in cosmetics, and increased sampling in electronics [1] - Consumers are encouraged to choose "flagship" or "brand authorized" stores, verify key product information, and report any irregularities through official channels to strengthen consumer rights awareness and reduce the prevalence of "ghost online stores" [2]

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - The global trade of counterfeit goods is projected to reach approximately 4.7% of total trade by 2021, reflecting a growth from 2.3% in 2019 [14][113]. - The report highlights that counterfeit goods significantly impact various sectors, with the clothing industry being one of the most affected, accounting for 21% of counterfeit trade in 2020-2021 [33][43]. - The OECD and EUIPO emphasize the need for enhanced international cooperation to combat the rising trend of counterfeit goods, particularly in the context of the COVID-19 pandemic [15][16]. Summary by Sections Section 1: Background on Counterfeit Trade - The introduction outlines the increasing prevalence of counterfeit goods in global trade, particularly during the pandemic [15]. - The report notes a significant rise in counterfeit goods, with a 4.7% share of total trade in 2021 compared to 2.3% in 2019 [14][113]. Section 2: Trade Routes and Affected Industries - The main source economies for counterfeit goods in 2020-2021 were identified, with 45% of counterfeit goods originating from specific countries [27]. - The report lists the top 20 categories of counterfeit and pirated products, with clothing, electronics, and cosmetics being the most prominent [34][38]. - Transportation methods for counterfeit goods have shifted, with 60% of goods transported via road [44]. Section 3: Specific Industry Analysis - The clothing industry (HS code 61) is highlighted as a major target for counterfeiters, with a significant percentage of trade attributed to this sector [56]. - The report details the trade routes for counterfeit footwear and cosmetics, indicating that these sectors also face substantial challenges from counterfeit products [70][80]. Section 4: EU Counterfeit Imports - The report provides insights into the structure of counterfeit imports into the EU, with a focus on the top 20 industries targeted by counterfeiters [108]. - It estimates the value of counterfeit products imported into the EU, which reached approximately 1.17 billion in 2021, reflecting a 4.7% increase from previous years [113].