Global trade is a key driver of economic growth, fostering international specialisation, the opening of new markets, as well as offering consumers an unprecedented range of products. Fueled by globalisation, technological innovation, and advanced logistics, this interconnected system has significantly strengthened global commerce. Yet, the same conditions that enable legitimate trade have also created opportunities for illicit activity; in particular, trade in counterfeit goods.
Counterfeiting is a serious threat to the global economy. With the increasing complexity and global dispersion of supply chains, these have become increasingly vulnerable to exploitation by criminal networks which have taken advantage of enforcement gaps, regulatory inconsistencies, and the opacity of cross-border trade. The result is a significant erosion of market integrity and consumer trust.
For small, highly innovative and exports-oriented economies such as Switzerland, the implications are significant. Swiss industries are built on innovation, quality, and strong brand reputation—factors that are central to their global competitiveness. However, the widespread recognition and high market value of Swiss products make them attractive targets for counterfeiters. The resulting proliferation of fake goods not only harms legitimate businesses, but disrupts economic stability, poses risks to consumer safety, and erodes confidence in the integrity of international trade.
This report provides an analysis of Switzerland’s exposure to intellectual property rights (IPR) violations and quantifies the magnitude of this trade and its economic impact. It also provides an in-depth analysis of the Swiss watchmaking sector, and the role played by small parcels in the distribution of counterfeit products that infringe on Swiss IPRs. By offering evidence-based insights, this report aims to support Swiss authorities and international partners in designing more effective strategies to combat counterfeiting and to reinforce the protection of intellectual property on a global scale.
The results of the present analysis are concerning. In 2021, global trade in counterfeit goods infringing on Swiss trademarks was estimated to be USD 4.7 billion—equivalent to 1.3% of Switzerland’s total exports. That same year, counterfeiting led to an estimated USD 3 billion in lost sales across impacted Swiss industries and the destruction of over 6 000 jobs. The impact extended beyond the private sector. Indeed, due to counterfeiting, the Swiss government suffered an estimated loss of close to USD 97.8 million in tax revenues.
While several sectors are impacted — including electronics, apparel, leather goods, footwear, and furniture — the Swiss watchmaking industry is by far the most heavily affected, making it the primary sector harmed by violations of Swiss intellectual property rights.
Counterfeiters continue to adapt to enforcement measures by using increasingly complex trade routes and sophisticated distribution methods. This report highlights the major challenges faced by enforcement authorities, including those related to the widespread misuse of international postal and courier services. The growing use of small parcel shipments has enabled traffickers to operate with greater discretion, making detection and interception significantly more difficult.
The findings point to significant vulnerabilities and persistent challenges for the Swiss economy, underscoring the need for ongoing monitoring and an international co-ordinated response.
