4 compelling reasons why shrink sleeve labels are good for your products

Shrink sleeve labels are effective packaging solutions for bottled products. Theare highly aesthetic and can fit easily on any shape and size of the packagingHowever, due to a large number of packaging labels available in the market, you can get confused regarding the same. Therefore, in this blog, we have explained four compelling reasons to choose shrink sleeve labels for your bottled products.  

1. Can be applied to products of different materials  

Shrink sleeve labels can be applied easily on materials made of plastic, glass or metal. This unique quality of shrink sleeves makes them stand apart from other forms of packaging. So, if you are into the manufacturing of products with a wide variety of materials, then shrink sleeves can be your best choice of label packaging.  

2. Can fit seamlessly on different shapes and sizes of products 

You can face a lot of challenges while choosing the right packaging solution for your products. Generic product labels have to be customized as per your needs and this can increase your packaging costs. However, shrink sleeve labels have the unique property to fit seamlessly as per the shape and size of the packaging.    

3. Allows 360-degree surface area for branding 

Unlike product labelsshrink sleeves can showcase the product information and branding in a 360-degree format. Your product’s packaging is meant to grab maximum eyeballs and shrink sleeves are the best solutions in this regard.    

4. The material of shrink sleeve is damage resistant  

Most generic paper labels cannot withstand moisture, temperature, leaks, and spillage. But, shrink sleeves are the most effective packaging labels against these factors. Shrink sleeve labels are made with high-quality materials that can survive in the harsh environment of the supply chain.   

Holostik is a frontrunner in providing customized shrink sleeve labels to different industries. To know more about shrink sleeve labels, connect at our LinkedIn or call us on +91–785-785-7000 or drop us a mail at connect@ec2-54-210-245-44.compute-1.amazonaws.com  

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 challenges faced by manufacturers due to counterfeiting

There has been a sharp rise in the number of fake products across the globe. Counterfeiting is impacting consumers, manufacturers and governments. Almost every industry is affected by the problem of duplication. According to a joint report by KPMG and FICCI the counterfeiting business us going to become $1.90 -$2.81 trillion industry by 2022.

Organizations are trying their level best to counter the threat of duplication. The added costs in fighting fakes comes as an extra burden. Besides the company facing duplication has to deal with poor brand image which often takes years to build.

Let’s discuss some of the negative impacts of counterfeiting on manufacturers:

Loss of sales revenue and profit margins: No wonder, a good amount of sales is synonymous with the growth of the company. 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.

Added cost on fighting fakes: Companies have to 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.

Counterfeiting causes losses worth billions of dollars to the global economy. However, with the help anti-counterfeiting solutions manufacturers can fight the menace of duplicate products. Holostik is an industry leader in providing the best anti-counterfeiting solutions as per the client’s needs.

The negative impact of counterfeiting in the pharmaceutical industry

There are many times when the medicines you take do not help you in relieving from the ailment. Sometimes these medicines may cause many unwanted side effects on your body. This simply means that such medicines may be of low quality or counterfeit.

The market of fake medicines has grown tremendously over the past few years. Such spurious medicines can be found at government pharmacies, big pharma stores, local drug stores to small shops. Nowadays, people have become highly susceptible to fake or spurious medicines. This is because of many reasons like lack of awareness, poor monitoring of supply chains and weak regulations.

Here are some shocking facts about counterfeiting in the Pharma industry.

  • Around 20% of all drugs sold in the Indian market are counterfeit- (Source: US Trade Representative Office Annual Report)
  • Up to 10% of drugs in developing countries are fake, costing an annual loss of $10bn to $200 Billion. (Source: American Journal of Tropical Medicine and Hygiene)
  • 35 percent of fake drugs sold all over the world come from India. (Source: WHO Report)

Now let’s discuss some of the challenges posed by counterfeit medicines.

1. Prevents the business growth of Pharma companies: One of the biggest impacts of counterfeiting in the pharma business is that it brings down the profits of legitimate manufacturers. Market reports state that fake medicines lead to an annual loss of $46 billion for pharma companies worldwide.

Hampers the use and promotion of low-cost generic drugs: A major share of India’s drug market is dominated by branded generics. To promote the use of less expensive branded generic medicines government is taking various measures but, the circulation of fake drugs blocks its promotion and sale. This is because medicine earns a bad reputation due to its duplication.

3. Increased pressure on health and economy: The use of counterfeit medicines increases unnecessary costs on public health. This is due to their unwanted side effects which leads to a host of other health complications and diseases subsequently creating a vicious circle.

4. The extra cost for resources: To tackle the issue of counterfeit government has created many regulatory bodies but, has failed to counter the problem due to lack of manpower, for more human resources increase in costs are quite evident. For instance, India’s Central Drugs Standard Organization which is the country’s drug regulator had just 233 employees in 2014. In order to increase the strength of employees will bring an extra burden on the government in the form of increased expenditures.

The rise of counterfeit consumer electronics industry in India

In India some of the most popular markets for counterfeit electronic products are Nehru Place and Ghaffar Market in New Delhi, Manish Market and Linking Road in Mumbai, Hong Kong Bazaar in Hyderabad and Kasimedu street in Chennai. In fact, tier 2 and tier 3 cities are flooded with fake and cheap grade electronic products in abundance.

According to reports, the counterfeit electronic products market is growing twice as fast as general goods. There are numerous news reports and studies which point towards the growing fake consumer electronics industry.

An article by Quartz cited a report according to which every one in three Indians has received a counterfeit on the e-commerce space. According to the report, the largest share is that of mobile and computers at 45% followed by TV and other electronic products.

There are two different types of counterfeit electronics products available in the Indian market. The first type includes a completely fake product (not manufactured by the original component manufacturer but has laser markings). The second type is known as a partial fake product (manufactured by the original component manufacturer but are remarked to show different functions). In this type, the counterfeiters use fake packaging instead of remarking the product.

To tackle the onslaught of counterfeit products in the electronic sector the Department of Electronics and Information Technology had notified ‘Electronic and IT Goods (Requirements for Compulsory Registration) order in the year 2012 under compulsory registration scheme of Bureau of Indian Standards.

The order maintains that no person shall manufacture or store for sale, import, sell or distribute goods which do not conform to the Indian Standard specified in the order. Although the order has proved to be a big milestone in curbing counterfeiting, still there are measures that need to be followed strictly to completely eradicate fake electronic products from the market.

For example, organizations must strictly use different anti-counterfeiting measures to prevent any possible form of counterfeiting or tampering. Integrated anti-counterfeiting solutions which include a security label or a hologram along with a QR code helps to track and trace the product in a supply chain. In addition, the integrated solution also helps in instant product authentication.

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

 

How QR codes can play an important role in preventing counterfeiting?

Nowadays, QR codes can be seen everywhere. You can find them on the packaging of food items, consumer electronics, business cards, presentations, websites, etc. People and organizations use them to store and disseminate different kinds of information, product authentication and implementing a gamut of supply chain management solutions.

Back in 1994, in Japan, Denso Wave a subsidiary of Toyota developed the first QR code in order to track the manufacturing process of its vehicles and parts. Since it was developed to allow for fast decoding speeds and thus got the name ‘Quick Response’ code. These codes are advanced versions of the previously popular barcodes. However, QR codes have the capability of storing a large amount of information and takes a comparatively smaller area for printing.

Just like a barcode a QR code stores information in a machine-readable optical label. The data contained by a QR code can include anything right from simple text, to e-mail addresses, to phone numbers and much more. The data stored in QR codes is in the form of black dots and white spaces which is arranged in a square grid. These patterns are scanned and translated in readable information for humans with the help of an imaging device like a camera or a scanner.

Today, organizations across the world use QR codes for not just storing information but also for product authentication and tracking. In times, when counterfeiting is on the rise and has become a multibillion-dollar business securing supply chain from the threat of counterfeiters is most important.

For this, a unique QR code is assigned for every individual product and also for the product pallet. While moving through the supply chain the product is scanned at different levels which not just authenticates the product but also updates the database of the system. Through this mechanism, a manufacturer can track the location of his or her product in the supply chain. Similarly, for the end consumer, a simple QR code scan determines the genuineness of the product instantly.

Holostik provides customized QR codes integrated with security labels and holograms. This provides double-edged security to the product against any possible form of counterfeiting. Our QR codes not just help in product authentication but also provide a gamut of supply chain management solutions.

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

The monstrous growth of fake products in the Indian Agro industry

Agriculture is one of the biggest industries in India which massively contributes to the GDP. It also provides employment to a large of people. However, the growth of counterfeit agro products has led to a downfall of the Indian agro-industry. For example, fake pesticides make up almost a quarter of the market exposing farmers, their crops and the environment to many harmful side effects.

The big problem with fake sub-standard, duplicate or spurious agrochemicals is that they cause more harm to the crop yield than the pests. Experts suggest that with the growth of population and subsequent rise in demand for yields there has been a massive need for agrochemicals. The Federation of India Chambers of Commerce and Industry (FICCI) expects the turnover of the Indian agrochemical industry to double to $8.1 billion by 2025.

India is an ideal market and a potential destination for agrochemicals producers. It is also a risky market where counterfeit and harmful imitations compete with original pesticides, fertilizers, and soil nutrients. Agrochemical companies whether big and small are eager to establish manufacturing hubs in India because of low processing costs and availability of cheap labour.

Despite the enormous growth large quantity of agrochemicals in the Indian market are not authentic which implies that they may be counterfeit, spurious, adulterated or sub-standard. These cheap grades are completely ineffective in destroying pests.

Let’s discuss some of the factors behind the growth of counterfeiting in the agrochemical industry in India.

1.Lack of knowledge among end-consumers/farmers: One of the biggest reasons behind the growth of fake products in the agrochemical industry is the lack of knowledge about genuine products among consumers. Illiterate farmers usually do not check the product authentication features and just go for the cheap price.

2.Rare adoption of anti-counterfeiting solutions by companies: Many agro-chemical manufacturers do not implement anti-counterfeiting solutions in their products. This makes their products highly susceptible to duplication, tampering and even diversion.

3.Lack of stringent regulatory measures: Lack of strict regulatory measures against counterfeit products and poor laws against counterfeiters has led to the rapid rise of counterfeit agro-chemical products.

In case if you are from the agro-chemical industry and want a robust anti-duplication solution for your product then you may call us on +91–785-785-7000 or drop us a mail at connect@ec2-54-210-245-44.compute-1.amazonaws.com.

How counterfeiting tarnishes the brand’s image?

There has been a humungous growth of fake brands in different industries. From counterfeit apparels to spurious medicines, fake footwear to duplicate watches the list seems endless. According to Global Brand Counterfeiting Report, “The amount of total counterfeiting globally has reached to 1.2 Trillion USD in 2017 and is bound to reach 1.82 Trillion USD by the year 2020.”

Brands are not just losing millions of dollars every year due to counterfeit products but are also facing many other challenges. Perhaps, one of the biggest challenges faced by organizations due to counterfeiting is the damage to their brand reputation.

Over the past few years, the proliferation of fake goods has bought a major change in consumer buying behavior. According to sources, a large number of consumers are less likely to buy products from a brand if its reputation has been tarnished due to counterfeit goods. Even in the e-commerce space, consumers are less likely to buy products from websites that have earned a bad name due to counterfeiting.

Counterfeit products have a direct impact on the confidence of the consumers buying a brand. A large number of consumers who have purchased fake products unknowingly never buy the same product again and tend to switch over to another brand.

If a consumer is duped into buying a fake product and later discovers that the product is not worthwhile then it leads to a blow on his confidence in the product and the brand. Moreover, such brands are more susceptible to negative word-of-mouth publicity.

So, if a consumer receives a fake product then there are high chances that the genuine brand and manufacturer may earn a bad reputation.

In the online space, customers leave negative reviews for such brands which jeopardize their reputation. This sometimes creates a false narrative that even brands manufacture low-quality goods. Regular news related to counterfeiting of a specific brand can create an assumption in the minds of consumers that the brand is not serious regarding duplication and is not taking stern measures against counterfeiting.

However, companies across the world are now taking serious measures against the problem of counterfeiting. The online retail giant Alibaba which has earned a bad repute for counterfeit products has made a task force to handle counterfeits on its platform. Besides organizations have also implemented different anti-counterfeiting products and solutions to secure their products and brand.

Holostik provides tailor-made anti-counterfeiting products and solutions which help in securing the product and the brand’s image from the problem of counterfeiting. If you are facing the problem of duplication call us now on +91–785-785-7000 or mail us at connect@ec2-54-210-245-44.compute-1.amazonaws.com.

The growth of counterfeiting in the liquor industry

The entire nation was jolted by the ill-fated deaths of people due to counterfeit alcohol in the first half of this year. Not just precious lives were lost but families were left devastated in the states of UP, Uttarakhand, and Assam. The onus of the tragedy fell upon the respective State Governments and a debate ushered in the by lanes of media and forums on the present regulatory and anti-counterfeiting measures against fake and illicit alcohol in the country.

According to a study published in the journal Lancet, India’s alcohol consumption has increased by 38% in the last seven years-that’s 4.3 to 5.9 litres per adult per year. Another study states that India is the biggest consumer of whisky in the world. However, the rising demand for alcohol has led to the growth of spurious alcohol industry.

There have been frequent reports of seizures of counterfeit and bootleg alcohol from different states of India. According to a report by FICCI, “The grey market loss to the alcoholic beverage industry stood at INR 14,140 crore in 2014 which had increased from INR 5,626 crore in 2012 observing an increase of over 150 per cent.”

There are various reasons for the growth of counterfeiting in the alcohol industry. Lack of awareness regarding the effects of counterfeit alcohol is one big reason. The poor consumer is lured by the cheap prices of counterfeit alcohol and thus ends up buying counterfeit alcohol which may contain toxic adulterants. These adulterants lead to serious repercussions like kidney failure, liver failure, blindness, and even death.

The government must address the problem of counterfeit alcohol seriously as it hampers the growth of manufacturers, leads to a loss of Government exchequer and jeopardizes the health of the consumers. The combination of digital and holographic solutions can prevent the growth of counterfeit alcohol to a large extent. The U.P state government is currently using bar codes which have not been completely successful in clamping down on counterfeits, therefore, authentication solution providers association (ASPA) has suggested governments to incorporate holographic products along with bar codes/QR codes on liquor bottles to battle the menace of duplication in the liquor industry.

Do let us know if your brand or product is facing duplication. We offer tailormade anti-counterfeiting products and solutions. Call us on +91–785-785-7000 or mail us at connect@ec2-54-210-245-44.compute-1.amazonaws.com

The negative effects of counterfeiting on the economy

Counterfeiting is a trillion-dollar illegal business having its presence in almost every part of the world. Today, counterfeiting is posing a threat to not just the consumers but also to the economic growth of the nations.

According to an OECD and EUIPO report, “Global sales of counterfeit and pirated goods have soared to 460 billion euros ($522 billion) a year, amounting to a whopping 3.3 per cent of world trade.”

The report also states the nations most affected by counterfeiting which includes the United States, Japan, South Korea and the EU states. However, the effects of counterfeiting are not just visible in developed countries but are also hampering the growth of the developing world.

Let’s discuss some of the impacts of counterfeiting on the economy of a country:

Evasion of taxes: Counterfeiting leads to evasion of taxes. The mammoth counterfeiting industry sells its products in the market without paying taxes to the government. This leads to a loss of the government exchequer and finally, the government is not able to spend enough on welfare projects and schemes.

Rise in unemployment: Since the counterfeit industry takes away the profits of credible companies, they are not able to recruit new employees. The financial instability of the industries creates massive unemployment which is linked indirectly to the problem of counterfeiting.

Diminishes foreign investment: It has been generally seen that countries with weak IP laws and poor regulatory measures become the breeding ground for counterfeit activities. Such countries blur their chances of foreign investments. Counterfeiting diminishes the chances of foreign direct investments and thus block the economic growth of a country.

Fuels other black-market activities: Counterfeiting fuels other black-market activities and is a lucrative business for organized criminals. With the money acquired from the sale of counterfeits, they fund their vast network, which is involved in drugs trafficking, human trafficking, illegal arms, prostitution etc.

Finally, we can conclude that counterfeiting has multiple negative effects, which are very harmful to the economic growth of the country if not checked on time by authorities and the respective governments of their countries.

To get the best anti-duplication and products and solutions call us on +91–785-785-7000 or mail us at connect@ec2-54-210-245-44.compute-1.amazonaws.com.