Why counterfeiting diminishes the chances of foreign direct investment?

The world is a global village as there is a high interdependence of countries on each other in different fields. From world-wide-web to culture, technological innovation to trade, military alliances to transport there are many scenarios in which the world seems to function as a unified whole.

Among the above-mentioned aspects, trade and investment play an important role in the economic development of countries. Of late, Foreign Direct Investment (FDI) has become quite important for third world countries when it comes to their economic development. FDI impacts the economic growth of the host country (a country in which investment is done) through the transfer of new technologies, organization of human resources, increase in employment, linking of global markets, the rise of infrastructure and much more.

However, the rise of counterfeiting can damage the FDI prospects of a country and its potential to create valuable innovation centres. FDI is important for both advanced and emerging economies to increase their productivity and output. Lack of intellectual property rights and anti-counterfeiting measures diminish the chances of FDI. In India, the industries most impacted by lack of FDI due to counterfeiting include equipment manufacturing and pharmaceuticals.

The total reduction in FDI due to counterfeiting and piracy is quite harmful to aspects like employment, infrastructure and socio-economic development. Countries are sceptical of investing in prospecting countries with weak IP laws as it may lead to counterfeiting of their products, theft of their technologies, reduction in their profits and damage to the brand image.

With the implementation of stringent regulatory measures and anti-counterfeiting technologies, duplication can be prevented to a large extent which will further brighten the chances of foreign direct investment. For ensuring impeccable security against counterfeiting it is must that supply chains must also be secured. A comprehensive outlook towards anti-counterfeiting guarantees the economic development of a country.

If you require customized anti-duplication solutions for securing your products and supply chains, then call us on +91–785-785-7000 or mail us at connect@holostik.com

How shrink sleeves can leverage the product value and security?

With the growth of flexible packaging industry there has been an increase in demand for different kinds of shrink sleeves. A shrink sleeve is a 360-degree packaging tube that shrinks around the containers after the application of heat or steam. Shrink sleeves can be designed to cover the entire product or cover just a portion of it depending on the requirement.

Different industries are using shrink sleeves which include food and beverages, health and beauty, nutraceutical& pharmaceutical and many others. The beverage industry in particular has been using shrink sleeves due to their waterproof property and durability.

Shrink sleeves are also capable of catching consumer attention due to their 360-degree visibility. Shrink sleeves can also encompass a wide variety of designs and security features which are quite important aspects of robust packaging.  Shrink sleeves work as an efficient product label for the company highlighting all the necessary details and branding.

Shrink sleeves can help to catch attention of the consumer on the shelf. Many companies also provide non-conventional ways to use shrink sleeves such as wrapping two products together for convenience and durability.

Brand gurus prefer to use shrink sleeves as they are a one-stop-shop for packaging. Since shrink sleeves are single sleeve, they are preferred over other forms of packaging products which might involve two or more components such as an outer carton. A single packaging product also reduces the packaging costs for the companies.

Holostik is a leading player in providing tailor-made holographic shrink sleeve. The shrink sleeves are made with optimum quality raw materials and help in leveraging product value and security.

If you want the best & customised shrink sleeves for your products, then call us on +91–785-785-7000 or mail us at connect@holostik.com.

Honda two wheelers conducts raids to deal with fake auto spare parts

Recently, Honda two-wheelers conducted enforcement raids against manufacturers and traders who were dealing in its counterfeit products. In order to guarantee safety, the two-wheeler manufacturer created an Intellectual Property Rights (IPR) team in 2017. The team has until now implemented countless measures against traders, manufacturers and suppliers who deal in duplicate Honda spare parts.

In June 2019, the company with the help of local Police executed four raids in the cities of Delhi and Cuttack. The raids were conducted on traders, manufacturers, suppliers and unauthorized service centres. After the raids around 10,462 fake items including fake parts, accessories, dies, scooter guard kits, fake packaging machines and label printing machines were confiscated. The company said that the overall value of fake products and parts is valued at around Rs 49 lakh.

The police conducted two raids in Delhi on the basis of a complaint made by a manufacturer against fake parts and accessories being sold in Karol Bagh market and Bawana Industrial Area. In the city of Cuttack, the police raided premises of two service centres running under fake Honda brand name at Sector 9 and Chandi road.

Honda’s two-wheelers IPR enforcement team has collaborated with the local police as well as the investigation agencies and has jointly conducted raids in the cities like Delhi, Chennai, Bengaluru, Secunderabad, Hyderabad, Mumbai, Gandhinagar, Cuttack, Gadhi Hasaru (Gurgaon) and Ahmedabad. As a result of the raids 94,000 fake spare parts, accessories and other items worth Rs 2 crore have been seized.

Honda two-wheelers also pointed out that all genuine Honda parts feature tamper-proof high-security MRP label which can be used to differentiate between its genuine and fake auto spare parts. It also added that the company’s original spare parts are available at authorized outlets, service centres and distributors across India.

Source: Timesnownews.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@holostik.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@holostik.com

Robust flexible packaging product: Holographic Shrink Sleeve

Among the many flexible packaging solutions, holographic shrink sleeves have gained immense popularity. Shrink sleeves are being used in different industries which include beverages, food, dairy, cosmetics, detergents etc. Shrink sleeves offered by Holostik are known for their holographic properties.

Shrink sleeves have become popular because they reduce in size and conform according to the shape of the container and become a sought of the sleek label for the product package. Shrink sleeves can include customised artwork and security printing which make them robust security packaging solution for a wide variety of products.

Let’s discuss the five major reasons which make shrink sleeves and ideal packaging solution:

  1. Shrink sleeves provide 360-degree branding for the product

Shrink sleeves can be wrapped around the entire packaging container and provide a 360-degree exposure to the brand name. The 360 branding holds an important place in marketing the product efficiently. Shrink sleeve helps the brand to showcase it in the best way- irrespective of the position.

  1. Can be used for all type of containers

One of the best quality of shrink sleeve is that it can be applied to containers of different shapes. Its property of adjusting to the shape of the container on the application of heat makes it an ideal packaging solution for different bottles and containers.

  1. The benefit of holography in shrink sleeve

A complete holographic shrink sleeve or the presence of holographic strip on it can act as a perfect anti-counterfeiting solution for the product.

  1. Eco-friendly containers

Shrink sleeves are one of the best eco-friendly products in the packaging industry. Shrink sleeves help in keeping away the adhesives and other harmful chemicals. The use of shrink sleeves causes minimum wastage.

  1. Effectively resists wear and tear

Shrink sleeves have become popular in the packaging industry as they can easily withstand all forms of wear and tear.

Counterfeits are losing sales and business in UAE

The number of counterfeit items has dropped down after Khaleej Times took a joint initiative against the presence of counterfeit goods at different locations like a raid on Karama shops.

Abdul, 40 who owns a shop for ladies’ bags and purses in Karama said that that he has faced a setback in his business. Earlier when he had opened the shop, he used to make Dh2,000 but now he makes only Dh100. Sometimes he is not able to sell a single item.

This is the third time he had opened a shop in Karama. Five years ago, the authorities had fined him Dh50,000 during a crackdown against fake products.

“After paying that hefty fine with great difficulty, I closed down my shop and went back to India for a few years.”

He further said that after paying the big fine he closed down his shop and went back to India. On the rising issue of fakes, he says, “Many years ago people used to display fake items at the counter but now they are hidden underground or inside secret basements. Many tourists still come to buy fake products they do not mind buying a copy.

Ahmad Almheiri, senior manager of the business protection department at the DED, said: “If they are selling in a secret apartment, it means they know that the DED is always in the market and that it’s hard to sell counterfeits in Dubai.”

Source: Khaleej Times

What is an ideal packaging solution for the product and the brand?

The packaging is important for multiple aspects of the product and the brand. It is not just solely responsible for protecting the product but in fact leverages the brand image many times. Market experts consider packaging as one of the important aspects of product and brand marketing.

Let’s discuss the significance of packaging through these points:

Product protection: One of the first aims of packaging is to secure the products against any kind of harm or breakdown through different phases of the supply chain. In order to safeguard the product, it is processed through different stages of packaging which are primary packaging, secondary packaging and tertiary packaging. The packaging of a product also depends on the type and nature of its content.

Marketing: An ideal packaging also helps in promoting the product and the brand. A good packaging intends to leverage the brand value. A beautifully packaged product instantly catches the attention of the consumers from the shelf. Moreover, a well-packaged product outshines other competing products.

Anti-duplication features: Counterfeiting is one of the biggest threats to products and brands. It not just leads to loss for companies but also wreaks havoc on the product and brand image of the companies. An ideal packaging must include anti-counterfeiting protection like holograms, security labels, QR codes, scratch codes among others.

Recyclable: Packaging leads to a large amount of waste generation. Plastic and plastic-based products are creating an ecological imbalance. This has led to the development of new packaging products which can be recycled after use. More and more companies are laying emphasis on using recyclable packaging solutions for their products.

No wonder, all the points discussed above are being implemented in the development of new packaging products. It is high time that organizations pay heed to multiple aspects of packaging in order to boost their product and brand in the market.