Counterfeit goods in Cyprus cause losses of up to €63 million per year, with the majority, €49 million, stemming from counterfeit clothing and footwear, according to new findings from the European Union Intellectual Property Office (EUIPO).

Counterfeit products that mimic the appearance of original branded products have become a widespread phenomenon in Cyprus, with another €12 million estimated in the jewellery and watches sector and losses of around €2 million in the handbag sector.

EUIPO said that around 13 per cent of Europeans report having deliberately purchased counterfeit products. Among younger consumers aged between 15 and 24 years, this figure doubled, reaching 26 per cent.

In an analysis of EUIPO’s recent data, news website Politis said that the fashion industry is estimated to suffer annual losses of €12 billion across the EU, with an additional €2.7 billion lost in sales for jewellery and watches.

According to Politis, the EUIPO’s findings reveal the decisive role of product design in consumer purchases in the EU, leading to European businesses facing an increased risk from counterfeits as 72 per cent of Europeans say they consider product design important when making purchasing decisions.

Design appears to be of particular importance to younger consumers aged 18 to 24 years, 80 per cent of which say they are willing to pay higher prices for products with better design, particularly in the fashion and furniture sector.