Top 5 benefits of using GS1 track and trace for Indian pharma companies

The distribution of fake medicines in the market spoils the brand image of pharma companies and leads to reduced sales. Continuous and unchecked counterfeiting of medicines can destroy pharma manufacturers and, more importantly, risk human lives.

Counterfeit medicines are rampant in Indian pharmaceutical marketplaces. Knockoffs of branded medicine can be found anywhere—from government pharmacies to big pharma stores and local drug outlets.

Problem of counterfeit medicines in India

According to a 2015 report by ASSOCHAM, 25% of medicines sold in India are either fake or of inferior quality. To quote a WHO report: “About 10.5% of medicines sold in low and middle-income countries, including India, are substandard and falsified.”

As one of the largest exporters of generic drugs and vaccines in the world, the Indian pharma industry accounts for every third dose of vaccine administered anywhere. Owing to concerns over bad reputation caused by the rampancy of fake medicines, the Indian government National Informatics Centre designed the “Drug Authentication and Verification Application” (DAVA) based on GS1 standards.

GS1-track & trace

GS1 standards make it possible to uniquely identify, capture and share important information on exported pharmaceuticals with regulators and patients, thereby further strengthening India’s reputation as a leading producer of quality and safe drugs.

“Benefits of GS1 track and trace for pharma companies”

Real-time information to authorities and patients

Provide real-time information to authorities and patients of pharmaceuticals manufactured in India.

Quick inspection of consignments

Pharma companies often face the challenge of slow movement through customs, both in India and abroad. Ensuring that your products are GS1-compliant will facilitate faster movement through customs by making it easy to scan barcodes and validating the data in DAVA.

Accuracy in dispatch processes

GS1 track and trace helps in efficient and automated FIFO (first in, first out) management and increases the accuracy of dispatch processes.

Competitive edge in the global market

Complying with the global and national regulations will provide Indian pharmaceutical manufacturers with a competitive edge in international markets.

International standing as a safe producer

Using GS1 standard track and trace will strengthen the international community’s confidence in India as a safe manufacturer of pharmaceuticals.

Consumer-end authentication

GS1 compliance will empower end-consumers to authenticate the final product and evaluate safety risks associated with counterfeits. As data becomes more complex, GS1 compliance allows pharma companies to ensure their global supply chain is easy to manage, accurate and reliable.

Holostik provides track and trace services to pharma companies in compliance with DAVA and GS1 standards to enhance supply chain visibility and efficiency.

To find out more, call us on +91–785-785-7000 or mail us at connect@ec2-54-210-245-44.compute-1.amazonaws.com.

Importance of anti-counterfeiting solutions for the manufacturers

Counterfeiting is growing on a monstrous scale. According to a report by Research and Markets, the global value of counterfeiting has reached a value of 1.2 trillion dollars. The report further states that as per the current growth rate counterfeiting will become a $2.81 trillion industry by 2022.

For the past many years, manufacturers have tried their best to curb the menace of fake products, however little progress has been achieved related to the same. The extra costs in fighting fakes have further deteriorated the problem. Manufacturers also suffer from a tarnished brand image due to the counterfeiting of their products.

Most importantly, in a highly competitive market, one bad experience for a customer can change his loyalty for a product or brand.

Amidst this grim scenario, anti-counterfeiting technologies can play a decisive role in preventing counterfeiting, tampering, and diversion. Holostik is a leading player in offering customized anti-counterfeiting solutions to different industries. With a legacy of 28 years, the company has provided anti-counterfeiting solutions to more than 10,000 clients in 75+ countries.

Holostik believes that with the proper use of anti-counterfeiting solutions manufacturers can prevent the following challenges posed by counterfeiting:

  • Loss of sales revenue and profit margin: Sales and profit margins are the veins and nerves of any organization. A company’s success is determined by the number of sales it has earned in a specific time frame. A good number of sales is a visible indicator of a company’s wellbeing and vice-versa. The sale of duplicate items leads to a drop-down in the sale of a company’s products. If it goes unchecked, then it can lead to a complete downfall of the company. Due to multiple sale locations of the product, it is quite hard for a company to trace the manufacturing location of counterfeits.
  • Poor brand and product image: No wonder, the sale of counterfeits lead to a tarnished image of the brand and its products. The sale cheap fakes lead to a false perception among consumers regarding the quality of the product and the brand. Unaware consumers often think that they are buying original products but instead, they receive fakes.
  • The added cost of fighting fakes: Companies incorporate different strategies for fighting counterfeiting of their products. This comes in the form of added costs for the organization already facing the problem of duplication.

To know more about our products and solutions call us on +91–785-785-7000 or mail us at connect@ec2-54-210-245-44.compute-1.amazonaws.com.

Counterfeiting on the global level-An overview

Counterfeiting or duplication is a growing problem across the world. It badly affects the government, businesses, and consumers. People across the world are suffering from the menace of duplicate products which is regularly authenticated by different reports and news coming from different parts of the world.

Market experts believe that the growing globalization is the main reason behind rampant duplication. They say that in order to increase their manufacturing capacity and hire cheap labor big companies shifted their base to developing and third world countries. However, the major problem in these areas was that of lack of anti-duplication regulation and poor IP laws.

This made the way for counterfeiters and they were easily able to steal technology to manufacture duplicate goods. With the passage of time, they became more organized and took counterfeiting on a much larger scale.

According to a report by OECD (Organisation for Economic Co-operation and Development) United States, Italy, France, Switzerland, Japan, and Germany are the hardest hit countries, with the majority (83%) of fake goods originating (not surprisingly) from China and Hong Kong. European brands are among the most impacted, with an estimated 5% of all goods imported into the European Union (EU) being fake. This represents as much as $118 billion.

With the growth and penetration of internet technology counterfeits are now being sold on different internet platforms. According to the International Trademark Association, “Criminals prefer to sell counterfeits on the Internet for many reasons. They can hide behind the anonymity of the Internet with the Dark Web even their IP addresses can be hidden. The Internet gives them the reach to sell to consumers globally-outside of the national limits of law enforcement.”

The global problem of counterfeiting must be addressed on multiple fronts with collaborative efforts of the government, industry players and anti-counterfeiting solution providers.

What are the negative effects of counterfeiting on companies?

Counterfeiting or duplication is not only harmful to the consumers but is equally detrimental for the companies. Moreover, counterfeiting not just affects big brands- assumed by many but, also decimates the business growth of small companies.

According to a report by Research and Markets, “The total amount of counterfeiting has reached to 1.2 Trillion USD in 2017 globally and is bound to reach 1.82 Trillion USD by the year 2020.”

This monstrous growth of counterfeiting is a testimony to the fact that it is badly affecting the business growth and market image of companies. Counterfeiting leads to serious problems which may even in some situations lead to a complete shutdown of businesses. Let’s discuss the major impacts of counterfeiting on businesses.

1.Drop down in sales

Counterfeiting brings down sales of genuine goods. Consider a scenario in which the counterfeit of your genuine product is sold in the market at half of its price. This will attract many consumers who are willing to buy fakes and will negatively affect the sale of your genuine products.

New research from Mark Monitor, the world leader in enterprise brand protection, has revealed that almost half (47%) of brands lose sales revenue to counterfeit or pirated goods, with one in three reporting a loss of more than 10%.

With the growth of online shopping, it has become difficult to recognize fake products. Forgers usually copy the branding and packaging of genuine products making it difficult for one to recognize fake products. The infestation of e-commerce space with counterfeits has brought down sales of legitimate companies.

2.Loss of brand reputation

Brand reputation is critical for companies across the world. A piece of negative news involving the companies name can hit its reputation badly. Similarly, a counterfeit purchased by a consumer in place of the genuine product may fail to work or worn out in a few days. This will create a wrong impression in the minds of consumers about the poor quality of the brand’s products.

It takes years of hard work and consistent consumer satisfaction to create an iconic brand image for companies.

Since word of mouth publicity plays an important role in the brand image the consumers affected by fakes will provide negative feedback on the brand. Customers may also leave negative reviews on forums and websites which further ruins the brand’s image.

3.Loss of time and money in fighting fakes

When a company finds out that they are being impacted by counterfeiting they take certain measures to fight back. However, this can be time-consuming and involves a lot of money and resources. This leads to diversion of company’s money for fighting fakes instead of investing it in other developments.

Companies suffering from counterfeiting invest a good amount of money in hiring costly legal experts and fighting legal cases for securing their products and brand from IP infringements.

E-Commerce major Amazon has taken a new initiative for fighting fakes. The online company has initiated an anti-counterfeiting move known as ‘Project Zero’ which will allow brands to directly flag and delete fake listings themselves.

What are the reasons behind the growth of counterfeiting?

Counterfeiting is a global problem which is growing on a rapid scale devouring economic growth and affecting the society badly. According to a report by the OECD and the EU’s Intellectual Property Office, “The value of imported fake goods rose to $509 billion in 2016, up from $461 billion three years ago.”

The report also states, “Global sales of counterfeit and pirated goods have soared to $522 billion a year, amounting to a whopping 3.3 per cent of world trade.” Different experts cite different reasons behind the growth and expansion of counterfeiting but there are a few main reasons which are responsible for its monstrous growth.

The trend of knowingly buying fakes: One of the biggest reason behind the rise of fakes is that there is a big market for it. The rise of luxury brand value has deeply steeped in the heart of millions and the only possible way to afford it is to buy a fake luxury product which satisfies one’s obsession for costly goods and is affordable at the same time. There are a large number of people buying fakes compared to the ones who unknowingly fall victim to counterfeit products. Moreover, counterfeits offer a high-profit margin for distributors and retailers compared to genuine products.

Poor IP laws and weak monitoring of supply chains: The governments in different countries need to make stringent intellectual property laws and should equip authorities with advance mechanisms to monitor supply chains. Perhaps one of the reasons behind the flourishing counterfeit business is due to the absence of these two steps. In the presence of strict IP laws, the chances of copyright violations come down drastically and curb the practice of counterfeiting. Besides, government authorities should also be equipped with advanced monitoring technologies to look out for any loopholes.

The rise of counterfeit business on the web: Nowadays, counterfeiting has intruded the online marketplace. We regularly encounter spurious websites and social media links on the web which showcase alluring deals on different kinds of products. But do we really know how the product actually looks like? According to the International Trademark Association, “Criminals prefer to sell counterfeits on the Internet for many reasons. They can hide behind the anonymity of the Internet with the Dark Web even their IP addresses can be hidden. The Internet gives them the reach to sell to consumers globally-outside of the national limits of law enforcement.”

The growth of free trade zones: Another factor behind the growth of counterfeiting worldwide is the rise of free trade zones in different parts of the world. Free trade zones provide tax advantages and other exemptions which helps to boost the economy of the host country. However, it also leads to a rise in counterfeiting and piracy as there are little checks and easy transport facilities available in these zones.

Lack of use of anti-counterfeiting technologies: Many organisations do not take counterfeiting seriously and they ridicule the use of anti-counterfeiting technologies. However, the fact is that duplication eats their business from within like cancer and at times the financial damage is huge. It is high time that organisations utilise the power of anti-counterfeiting technologies to deter counterfeiters from sneaking into their profits.