DOES GEN Z CONSUMERS REWARD TRADEMARK INFRINGEMENT IN THE COSMETIC INDUSTRY: A PLS-SEM ANALYSIS OF BRAND PATRONAGE IN AFRICA?

Abstract

The cosmetics industry's remarkable growth, driven by consumers' increasing focus on self-care and wellness, reflects a compound annual growth rate of 8.84%, with revenues reaching $129 billion in 2023, of which the skin care brand accounts for 41% of the global cosmetic market as of 2023. However, this growth occurs against the backdrop of the fourth industrial revolution, characterised by transformative technological advancements, including digital transformations that have introduced complex challenges like brand imitation and trademark infringement onsite. The research investigates how skincare brands leverage trademark infringement to attract Gen Z consumers in Africa, employing a post-positivist paradigm that accommodates quantitative methods of reasoning. Online surveys were conducted among 352 tech-savvy Gen Z respondents (representing an 88% sample rate and certified by an over 0.75 Cronbach alpha value) using Google-Form online questionnaires, revealing that trademark infringement significantly impacts Gen Z's patronage, explaining 54.9% of the variance in customer behaviour. Specifically, the research concludes that colour and name, product design, and sign and symbol elements of trademark infringement influence customer patronage by 5.6%, 11.7%, and 6.8%, respectively. Recommendations from the research highlight the importance of ethical marketing practices, distinctive product design, and enhanced symbol recognition for cosmetic brands. Additionally, the study acknowledges potential biases in data collection due to uneven online access among different segments of Gen Z in Africa. The focus on Gen Z consumers in Nigeria and South Africa might not fully represent the broader diversity of Gen Z consumer behaviour across Africa, considering varying cultural, economic, and social dynamics that influence cosmetic preferences and purchasing behaviours on the continent.