The primary objective of this thesis is to critically assess the role of counterfeit products in altering the traditional concept of luxury. The research investigates how the increasing acceptance of counterfeit luxury goods influences brand perception and consumer behaviour. Additionally, the study seeks to identify the strategic discussions luxury brands must adopt to counteract these challenges and preserve their market position. The study employs a quantitative research approach, utilising a structured questionnaire to collect data from a diverse sample of luxury / counterfeits consumers. The questionnaire targets various aspects, including consumer awareness of counterfeits, purchasing behaviours, and perceptions of luxury brands. Data analysis involves statistical techniques to examine the relationships between these variables and test the proposed hypotheses. Key findings reveal that a significant portion of younger consumers, particularly Millennials and Generation Z, knowingly purchase counterfeit luxury goods. This trend is driven by a combination of economic factors, digital access, and shifting values towards experiential and value-conscious consumption. Counterfeit goods negatively impact the perceived exclusivity and quality of luxury brands. Consumers increasingly find it challenging to distinguish between authentic and fake products, leading to a dilution of brand value. The prevalence of counterfeits erodes consumer trust and brand loyalty, as buyers become skeptical about the authenticity of luxury items. This skepticism is particularly pronounced among younger consumers who are more digitally astute and exposed to online counterfeit markets. The study underscores the necessity for luxury brands to innovate in their approaches to authentication, consumer education, and marketing. Embracing digital solutions such as blockchain for supply chain transparency, enhancing anti-counterfeiting measures, and creating personalised consumer experiences are essential strategies. In conclusion, the luxury market is at a critical juncture, facing significant challenges from the rise of high-quality counterfeits and changing consumer values. To sustain their relevance and desirability, luxury brands must adapt by reinforcing their traditional values of authenticity and exclusivity while aligning with contemporary consumer expectations of sustainability and ethical practices. The study highlights the importance of strategic innovation in preserving brand equity in an increasingly complex market environment.