Counterfeiting can give access to new market and be a benchmark of a brand’s health. It also increases the brand awareness and when the country or people’s economy become prosperous, sales move from counterfeit to original.
The product values are not completely diluted as the buyers of the counterfeit product doesn’t expect the same quality. Moreover, counterfeiting measures the strength of the brand. Brands that are not counterfeit are considered too weak to generate consumer demands. It closes off the competition since nobody can be as competitive as a counterfeit product. Finally it can give brands access to new market.