In order to welcome the International Consumer Rights Day, the relevant departments in Changchun, Jilin, destroyed a large number of confiscated items, including fake cosmetics, medicines, clothing, expired food, fake wine, motor oil, etc., with the number reaching 5,000 Many of these fakes were reduced to ashes in the fire under the watchful eyes of onlookers. Driven by profit, counterfeit and shoddy products are common in the market. In addition to causing great trouble and risk to consumers, counterfeit products are also harmful to the market economy. Let’s take a look at what fake and shoddy products have done to the market. Influence. Reduced the market resource allocation rate

The market economy requires a law-based economy based on integrity and fair competition. Counterfeit and shoddy products disrupt the normal economic order, distort normal competition and price levers, make it difficult for high-quality products to survive, destroy the normal supply and demand relationship in the market, and reduce consumer experience and the allocation efficiency of market resources. Disrupting the market economic order

Since the cost of counterfeit and shoddy products is much lower than that of high-quality products, they can always be sold at a cheaper price, but their quality cannot be guaranteed. However, counterfeit products have squeezed out the market share of high-quality goods, and some have directly misappropriated genuine product trademarks. This has caused great impact and losses to society and genuine products, disrupting the normal market economic order. This is a phenomenon where bad money drives out good money. Reduces the social welfare of consumers

High-quality products will bring a good sense of satisfaction to consumers. Whether they eat or use them, they will generally bring benefits to consumers. As long as there is economic Conditions allow consumers to purchase high-quality goods within their means. But the situation is different with counterfeit and shoddy products. In order to pursue profits, people who make and sell counterfeit products often pass them off as good ones, using lower costs or illegal additions to produce fake and shoddy goods. This not only harms legitimate manufacturers, but also makes it easy to use Consumers cause physical, economic and mental losses, which greatly reduces the social welfare that consumers should enjoy. Increased market and social transaction costs

The emergence of counterfeit and shoddy products has made many consumers deeply resentful. Many operators and consumers also have to spend a lot of time screening and searching when purchasing goods. They do not want to suffer losses due to purchasing fake and shoddy products, which requires consumers and operators to spend more material resources and resources. energy, and cost. Formal manufacturers and supervision departments therefore need to spend more resources, manpower and financial resources to crack down on counterfeit goods. This increases people's costs, both in terms of the market and society, and only those who make and sell counterfeit products benefit.