The effects of counterfeiting in the cosmetics and personal care industry

In the last few years, counterfeit cosmetics and personal care products have increased drastically. From fake lipsticks to fake shampoos, duplicate face creams to duplicate facial masks – the list seems endless. Nowadays, roadside shops, markets, and even retail shops are flooded with counterfeit versions of cosmetics.

For example, in the city of Delhi, some of the major counterfeit hubs of fake cosmetics are Janpath, Central Market in Lajpat Nagar, Sadar, Palika market, etc. You can easily find here cheap copies of famous international cosmetic brands at very low prices. Similarly, there are many other spots in other cities where you can easily find counterfeit cosmetics.

Current facts and figures related to counterfeit cosmetics

The counterfeit cosmetics industry is growing at fast pace and here are some shocking facts which prove the same:

  • In 2016, fake perfumes and cosmetics had a share of 5% of the overall global seizures. Source- OECD.
  • Counterfeit cosmetics contain harmful chemicals like lead and mercury. Source- Web
  • In February 2018, police in the US found US$700,000 worth of knock-off Kylie Cosmetics products in 21 locations throughout Los Angeles. Source: Cosmeticsbusiness.com
  • Social media now contributes to more than 50% of black-market cosmetics sales. Source: Cosmeticsbusiness.com

Negative impact on the manufacturers and consumers

Counterfeit cosmetics lead to a monetary loss of the manufacturers. Counterfeiting takes away a major chunk of profits from the companies. Moreover, counterfeiting leads to a tarnished brand image which takes years to build up.

Many big cosmetic brands have taken strict anti-counterfeiting measures to fight fakes. This comes in the form of added costs and puts a financial burden on the company which is already suffering from fake products.

Every day, we come across numerous reports and news from different corners of the world on the harmful effects of counterfeit cosmetics.  Since fake cosmetics contain toxic chemicals, they lead to different types of skin allergies, infections, etc.

Anti-counterfeiting solutions from Holostik

Holostik provides customized anti-counterfeiting, smart packaging, and supply chain solutions to the cosmetic and personal care industry. Our products not just help in preventing the sale of counterfeits but also help in monitoring the company’s supply chains.

Our anti-counterfeiting solutions are incorporated with high-security features like holography, tamper-evident and digital authentication technologies which makes it impossible for counterfeiters to breach our security standards.

To know about our customized anti-counterfeiting product line call us on +91–785-785-7000 or mail us at connect@ec2-54-210-245-44.compute-1.amazonaws.com.

The rise of counterfeiting in the footwear industry

According to a report by OECD (Organisation for Economic Co-operation and Development) and EU’s (European Union’s) Intellectual Property Office states that the footwear industry is the most affected by the problem of counterfeiting. Some of the famous brands affected by counterfeiting or duplication are Nike. Adidas, Sketchers, Reebok, Asics, etc.

Fake footwear represented around 22% of the overall share of counterfeited and pirated goods seized in the year 2016.

Nowadays consumers have become highly brand conscious, but everyone cannot afford a costly branded product. In order to satiate their need for buying luxury goods at low prices, people have shifted their focus towards fake goods. Selling and buying of fake items are illegal as they violate the intellectual property rights of the brands.

With the growth of e-commerce, it has become quite challenging to stop the sale of counterfeits. This is because a consumer cannot differentiate between a genuine and an original product by just seeing an image online.

According to a report, the global footwear market was valued at approximately USD 246.07 billion in 2017 and is expected to generate revenue of around USD 320.44 billion by the end of 2023, growing at a CAGR of around 4.5% between 2017 and 2023.

Fake footwear may fulfil your urge for branded goods, but they easily wear out or may cause injury or accidents many times. Counterfeit footwear leads to loss of profits, drop down in the reputations of the brands and also leads to massive unemployment.

Duplicate footwear can be curbed with the help of effective regulatory measures, the use of anti-duplication technologies and most importantly by generating awareness among the consumers and retailers regarding the drawbacks of fake footwear items. Some of the anti-counterfeiting measures are holograms, security labels, QR codes, holographic films, and other flexible packaging products.

To get the best anti-duplication solution call us on +91-7857857000 or mail us at connect@ec2-54-210-245-44.compute-1.amazonaws.com.

How to determine if your mustard oil is genuine or fake?

Mustard oil or ‘sarson ka tel’ has been one of the favourite cooking oils in India. Of late, many other types of edible oils are also being used but, mustard oil is still consumed predominantly by a large population, that inhabits the rural India – particularly in the north. For years, our forefathers thrived on food cooked in pure mustard oil which was responsible for their great health. Time and again researches have proved that mustard oil has numerous health benefits that are hard to find in refined oils.

But, as expected just like other food items mustard oil is also being adulterated and sold as a counterfeit in markets. This leaves our health in jeopardy as the effects of consuming duplicate mustard oil can be fatal. The government of India has issued strict guidelines and there are specific laws to punish people who practice adulteration of food, though, little has been achieved to curb the same.

Recently, KS Pannu, Commissioner Food and Drug Administration Punjab said that unscrupulous dealers and manufacturers are using cheap palm oil, crude rice bran oil, crude soya bean oil, colours and chemicals as adulterants in mustard oil. Another toxic adulterant Argemone oil is also used which causes dropsy and has been the reason behind many deaths in the past. The spurious oil is packed in tins and packets bearing the branding of the original product which makes it difficult to differentiate between the fake and an original.

If you are buying mustard oil from the market, then you can perform some easy home tests to determine its genuineness. Let’s discuss some of them in detail.

1.Freezing test: Take some mustard oil in a cup or bowl. Keep it in the fridge for a few hours. If the oil is freezing and having white spots, then there is something added in it and it is a counterfeit.

2.Rubbing test: Take some oil in your palms and rub it properly. If it leaves any trace of colour and smells like a chemical, then it has been adulterated with spurious substances.

3.Nitric Acid test: Take a tablespoon of oil and mix it with 5 ml of nitric acid. If the mixture turns yellowish orange or crimson colour, then it has been mixed with Argemone oil.

4.Barometer test: Pure mustard oil gives a barometer reading of 58 to 60.5. If the reading is more than this then the oil is fake.

5.Acidified petroleum ether test: In one millilitre of mustard oil mix 10 ml of acidified petroleum ether. After two minutes add one drop of molybdate. If the solution turns muddy then it has been adulterated with castor oil.

With advances in anti-counterfeiting technology, brands are utilising anti-counterfeiting solutions for their products and edible oil industry is no exception. Holostik – a pioneer in anti-counterfeiting solutions has successfully catered different kinds of anti-duplication solutions to the edible oil industry, which falls under the FMCG sector. It has secured one of the prominent players Gokul Refoils and Solvent Limited (GRSL) with the cutting-edge anti-duplication solution. The move not just stopped duplication of its products but also increased its profits.