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.

What are the reasons behind the growth of counterfeiting in India?

In the past few decades, there has been an enormous growth in the field of innovation and technology in India. This is further supplemented by the rising impact of globalization and an increase in spending power of the average consumer. However, the scenario has brought along many problems.

Among the many problems, the menace of counterfeiting is growing on a humungous scale. The current value fake products in India has reached more than 1 lakh crore annually.

Counterfeiting also referred as piracy in common trade parlance mean the unlawful acquisition by a person of the property of another person without his consent. Counterfeiting includes forgery of currency, documents, software, pharmaceuticals, jeans, watches, electronics and company logos and brands.

So, what are the reasons behind the growth of counterfeiting in India, let’s discuss:

  • Lack of knowledge about fake products: In India, one can find fake products anywhere. From street shops to malls, e-commerce to retail outlets, counterfeit products can be found anywhere. Consumers in India have little or no awareness related to product authentication, so they are duped with fake items umpteen times.
  • Lack of use of anti-counterfeiting solutions: Despite heavy losses many companies don’t take the problem of counterfeiting seriously and remain susceptible to the losses due to fake products. Anti-counterfeiting solutions like security holograms, security labels, holographic shrink sleeves, holographic strips can secure products from the problem of counterfeiting.
  • Poor intellectual property laws and regulations: India still suffers from weak laws related to counterfeiting. In absence of stringent laws, forgers find it easy to sell of their fake products in the market.

Established in the year 1991, Holostik India Ltd. is a leading manufacturer of customized anti-duplication solutions with the aim of securing products and industries. The company offers security holograms, security labels, revenue stamps, hot stamping foils, wads, shrink sleeves etc. along with digital product authentication, supply chain management, track & trace, reward management and much more. Holostik has 5 state-of-art manufacturing facilities with most advanced industry certifications. In 28 years of its legacy, Holostik has catered to 10,000+ clients from different industries and has worldwide outreach in 75+ countries.

 

 

 

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.

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.

The link between counterfeiting and organized crime

International law enforcement and market experts have established a close link between counterfeiting and other forms of criminal activities. It has been found that the counterfeiting business helps criminals to fuel other illegal activities and vice-versa. EUROPOL (European Union Agency for Law Enforcement Cooperation) has even warned that counterfeiting is an increasingly attractive avenue for organized crime syndicates to diversify and increase their illicit businesses.

It has also been found that counterfeiters use similar routes and modus operandi to supply counterfeit goods as they do to smuggle drugs, firearms and human trafficking. Profits from other crimes and illicit activities also help in the production and distribution of counterfeit goods. Many reports from different countries have established the fact that profits from crimes like drug trafficking and other crimes were used to promote the business of counterfeiting and, similarly proceeds from the sale of duplicate goods were used to promote the criminal’s other illicit activities.

One of the main reasons why criminals choose counterfeiting over other criminal activities is due to its favourable ratio between potential profits and possible risks. According to Executive Director, UNODC (United Nations Office on Drugs and Crime) Yuri Fedotov, “In comparison to other crimes such as drug trafficking, the production and distribution of counterfeit goods present a low-risk/high-profit opportunity for criminals. Counterfeiting feeds money laundering activities and encourages corruption. There is also evidence of some involvement or overlap with drug trafficking and other serious crimes.”

As per trade, reports counterfeiting is now placed amongst the highest income sources for organized criminal activities. Counterfeiting or duplication also helps in money laundering by providing a platform through which criminal organization can invest the proceeds of their illicit activities. In a nutshell, organized crime syndicates use counterfeiting as a medium to optimize their other criminal activities.