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.

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Why manufacturers require anti-counterfeiting technologies?

The global market for all counterfeit items is booming. According to the Global Brand and Counterfeiting Report, “The worldwide value of counterfeiting stood at a massive 1.2 Trillion dollars.” It is not just the consumer who faces the brunt of counterfeiting, but manufacturers also have to face the negative impact of counterfeiting.

There are many reasons which are responsible for the growth of counterfeiting in the manufacturing sector. According to a market, expert counterfeiting is becoming a bigger issue in the manufacturing sector for two reasons: The global marketplace is bringing in more players every day, and purchasing departments are pressured to continually lower the cost for what they pay for goods and services.

Another growing threat of counterfeiting in the manufacturing sector is the rise of counterfeit aftermarket parts and spare parts. Of late, particularly, in the auto industry, there has been a rise of fake auto components.

According to the magazine Business World, “The fake auto parts such as a clutch, lamps, steering arm, bearings, filters, and brake linings for two-wheelers, cars, and buses labelled under the name of genuine auto component manufacturers are supplied to the dealers and marketers all over the country.” The article also mentions that fake parts are available at 30-40% lower costs.

Industry experts also warn that it is not just the product which is being mimicked but counterfeiters try their level best to copy the packaging and branding of the product. Many times, they also have nice websites with photos of warehouses and workshops to make them look trustworthy.

In these testing times when counterfeiters have access to advance technology, it has become important to check the growth and sale of counterfeits in different industries. Moreover, there should be constant monitoring of the supply chains and the regular use of cutting-edge anti-counterfeiting technologies. A proper combination of physical and digital anti-counterfeiting technologies can check and monitor the growth of counterfeiting. The use of anti-tampering and scratch solutions will further add up to the anti-duplication game.