What we are seeing: China returns
Product authentication opens a rare window for observing consumer consumption and sell-out behaviour, along with the impact of counterfeiting and distribution to parallel markets. This is particularly useful in a period when sales trends are showing the negative effects of bottlenecks in production and distribution for fashion and luxury products that began with the quarantine in China and have now been extended to the rest of the world, specifically:
1) 76% of all authentications are performed on purchases from online channels: a significant increase compared to the data of three months ago.
2) Authentications in China, which fell quickly from January to reach an all-time low at 18% of average traffic, are now showing clear signs of recovery. By the week of 16-22 March, activity in China had rebounded to 68% of the volume that historical trends would predict for this period, and that growth is continuing (see below chart).
3) Certilogo brand customers and prospects in China show a strong will to accelerate industrial production, to recover the losses of the last three months.