Sales of counterfeit electrical products continue to be uncovered on the UK market, while fierce competition ensures a cut-throat business for many wholesalers.

The sale of counterfeit electrical products is still a prime concern for both manufacturers and those who sell the goods within the UK electrical industry, according to a new report, Electrical Wholesale, from market intelligence provider Key Note.

Since the mid-1990s, when BEAMA Installation set up a direct action campaign against those manufacturing and trading in counterfeit goods, more than £5.5 million worth of fake electrical products have been seized from China. Illegal products have also been found in the Middle East and, more recently, in Africa.

These illegal imports put extra pressure on the wholesale industry, which is already stretched by fierce competition. For high volume applications, components are often sold direct from manufacturers to users, while builders’ merchants and DIY stores are moving into the market too.

Manufacturers with internationally acknowledged high standards of business practice see the counterfeit trade as extremely damaging, as it causes losses of revenue and reputation for them and the wholesalers found guilty of selling the counterfeit goods. Users are also put in potential danger as low quality materials and techniques are used to manufacture the products.

In 2005, the electrical wholesale market was estimated to be worth £3.06 billion, an increase of 2·5% on the previous year.

Source

Electrical and Mechanical Contractor