how duplication affects your business and brand

How duplication affects your business and brand?

Mr Anil Verma had started a business of manufacturing men’s shoes some years back. The investment was quite heavy- apart from taking loan he had invested all his savings in the venture. For a few months, things seemed fine and to his surprise, there was a record number of sales in the following years. But one ill-fated day he got to know that his shoes were counterfeited across different locations of the country. He himself witnessed that visually identical copies of his products were sold at street shops, flea markets and local shops.

Soon, Mr Verma’s dreams turned into live nightmares. Besides losing profits, there was a considerable decline in consumer trust. The brand name which he had created in the market lost all its credibility. More to it with few human resources he was not able to completely check counterfeiting. Forgers were selling fake copies of his product for few hundred bucks. Mr Verma was depressed and finally, his company was shut down. Things would have been different if Mr Verma would have contacted us. We at Holostik have been fighting duplication since 1991. Our customised anti-duplication products and solutions help in bringing down the menace of duplication to a large extent.

We also know the negative impacts of counterfeiting on manufacturers and businesses and we want you to know about them as well.

Let’s go.

The decline in sales: While many people buy counterfeits unknowingly there is a major proportion of buyers who want to flaunt a fancy bag for a little money. This desire has created an enormous demand for fake products in the market which negatively affects the sale of original products.

Extra costs on fighting fake: Yes, Mr Verma had spent a lot of money on fighting fakes but to no avail. Duplication kills you secretly and silently. With the double whammy of added costs and poor sales, your company suffers a major monetary setback.

You lose your loyal customer: There are high chances that your customer will find an alternate if he gets duped with a counterfeit of your product. Imagine such fakes being sold at different locations and the number of customers you lose due to it. Disappointed and unsatisfied customers will always turn towards a new option.

A tarnished brand image: Last but not least counterfeiting negatively impacts the image of your brand. If there is a high volume of fake products of your brand then it will create a negative impression in the minds of retailers, distributors and consumers. They will perceive that the company does not care about its reputation.

So, if you are from these industries & want to stay safe against duplication or counterfeiting get in touch with us now.

holographic wide web films

Wide web films- encompassing beauty and security!

Effective packaging can play a substantial role in highlighting and securing the products. Marketers often consider packaging as the first communicator of the company. Among the many packaging solutions, holographic wide web films give the product a perfect shine and highlight its brand looks.

These films also curb counterfeiting as they offer holographic protection and prevents tampering. Holographic wide web films are available in various sizes and can be customised as per the specifications of the clients. Holographic wide web films are basically designed and manufactured using the best quality raw materials and are extensively used for flexible packaging.

The films are available both in PET (polyethene terephthalate) (minimum thickness 12 microns) and BOPP (biaxially oriented polypropylene) (minimum thickness 20 microns). Besides providing brand protection, holographic wide web films leverage the brand value by making the end product completely holographic.

Holostik is one of the leaders in anti-duplication and packaging solutions in India and provides a wide array of wide web holographic films that are available in various specifications as per the client’s requirements. The films are known for their self-adhesiveness, clarity, quality and shine. Special care has been taken by experts in making the product compatible with international standards and the latest market trends.

Some features of Holostik’s holographic wide web films:

  1. Attractive looks with optimum clarity.
  2. Shiny and glossy with high brightness & high gloss holographic effects.
  3. Superior bonding strength, heat resistant and waterproof.
  4. Available in different colours and patterns, plain, light beam and patterns. Many designs available for selection and customer’s designs.
  5. Used for toiletries, tobacco, flexible packaging, printing, wine boxes, gift boxes, books, magazines, boxes, printed products and other paper products laminating. suitable for high-grade imitation and pseudo carton laminating.
fake compostable plastic

Strict action against fake compostable plastic manufacturers

The MPCB (Maharashtra Pollution Control Board) after the order of (Central Pollution Control Board) will take action against the manufacturers who are selling duplicate compostable products. Most manufacturers are running the business without the certificate required for selling compostable carry bags or have counterfeit documents.

Dr SK Nigam Additional Director of CPCB has mentioned the names of such dubious manufacturers in a letter to MPCB. Besides Maharashtra, the manufacturers are from the cities of Chennai, Bengaluru, Ahmadabad, Uttar Pradesh and Delhi.

The state government has implemented the plastic ban in June 2018. The ban was imposed on several plastic products including all plastic and non-woven bags, plastic products, pouches with a capacity of less than 200 ml. However, compostable plastic bags for nurseries, horticulture, agriculture and for solid wastes were exempted from the ban. There are manufacturers who had the mandatory certificate from CPCB to manufacture such bags. But there were many manufacturers who were selling counterfeit compostable plastic bags with the fake tag.

Source: dnaindia.com

Durham Trading Standards clamps down on fake goods

As the post-Christmas bargain is on a high a new scheme has been put into action to battle growing business of fake goods on social media. Durham Trading Standards has launched a new scheme to protect the local customers and small business from illegal items being sold on e-commerce and social media platforms.

The real deal online programme ensures that social media groups do not promote the sale of fake good and other illicit products.

Officers are in touch with the administrators of the group to make them aware of their legal responsibilities and motivate them to follow the real deal rules.

Administrators are asked to allow trading standards officers to join the group and agree to a set of rules including the prohibition of the sale of fake and illegal goods which are:

  • To abide by the information from IP rights owners and their representatives who highlight the sale of fake goods.
  • To notify trading standards if they believe that fake goods are being sold within the group and to exclude the sellers of these goods.
  • To highlight notices and warnings posted by trading standards.
  • To make it sure that all members of the group are aware of its fake free policy.

Source: ITV.com

What you should do to avoid fake products?

The first line of defence against counterfeiting is the awareness against duplicate products. It is highly important for you to get acquainted with the information which will help you in identifying fakes products to a large extent however, it is not completely possible to spot fakes. Here are some points which you must keep in mind to determine the genuineness of a product:

Look closely at the labels and packaging 

Look at the labels, packaging, printing and the text closely. If you notice any flaw in the spellings, grammar, print quality or any other discrepancies then it could be a sign of counterfeit. Also, be cautious of products that include a ‘Made in China’ unless and until the product is merchandise manufactured in China, perform a web search for it.

Go for an authorised dealer

Always go for an authorised dealer while purchasing or replacing products. This is highly important in a scenario where you are purchasing or replacing spare parts for automobiles, aeroplanes and other items.

Are there no taxes?

Always be cautious of deals which allow you to purchase without value added tax, sales tax etc. This is usually in case of counterfeits which evade huge amount of taxes every year.

Purchase from a secure e-commerce website

Try to avoid purchasing from websites that do not have https in their domain. The ‘s’ in https stands for secure which is generally used by authorised and credible websites. Legitimate retailers will always ensure that their customers buy through a secure setting and are not duped with counterfeits.

Is the deal to good to be true?

One of the biggest giveaways for consumers is that ‘a deal is too good to be true’. Seasonal discounts or factory prices are fine but if the prices are too low compared to the regular price of the product then there are high chances that the product is a counterfeit. Take a cue from this and thoroughly check the labels and tags of the product.

Look for holographic and digital authentication

Last but not least is to visually identify security holograms or digitally authenticate QR codes and bar codes printed on the product. Due to the rise of counterfeiting companies are using security holograms and QR codes on their products. Security holograms are 3D holographic devices with optical properties and show different images or features corresponding to the angle of viewing. Try to view the holograms from different angles and you will be able to notice the different colours and images in it. There are also other covert features which can only be viewed with special instruments. For QR code authentication you will require a QR code scanning mobile application which will determine the genuineness of the product.

counterfeit textbooks

Amazon counters textbook duplication in a sting operation

International e-commerce giant Amazon is tackling the sales of duplicate textbooks on its US site after it came to know that many booksellers were allegedly selling counterfeit books revealed through a major online sting operation.

A media platform had reported that Amazon had conducted a sting operation which leads to the suspension of many US booksellers who were shipping fake textbooks.

A spokesperson from Amazon said that the counterfeit books were caught through a test buy program which is a part of major anti-counterfeiting action. The publishers of the books said that the books were fake, so they had to take action to protect their customers.

Prominent publishers like Cengage, Elsevier, Macmillan Learning, Mc Graw-Hill Education and Pearson collaborated on a website stopcounterfeitbooks.com which was intended to raise awareness of the problem of duplication they say is ‘significantly’ contributing to the decline of textbook revenues.

The website states that duplicate books are a substantial problem in the educational marketplace which is burdening students with cheap quality products; exposing distributors to legal liability and unsaleable inventory; and depriving authors and publishers of the funds necessary to reinvest in new educational content

Source: thebookseller.com

Duplication of spices- a growing threat!

All kinds of markets whether big or small have a range of spices. India is a country where different kinds of foods are eaten, and spices play a dominant role in making the regional delicacies. The usage of spices in dishes depends on the location and the mass production of a particular spice in a particular area. Climate and geography also play a major role in determining the production and demand for spices.

But counterfeiting of spices has become a common affair and there is hardly any place left where counterfeit spices are not available. From black pepper to cinnamon, cloves to turmeric and bay leaves a wide variety of spices have fakes readily available in the market. These duplicate spices are usually cheap and thus pose a threat to the original spice manufacturing companies. Many times, the spices are adulterated with harmful chemicals to make them look visually similar, this causes a wide number of ailments in the consumers.

Forgers also sell very old spices in the name of fresh aromatic spices. Storing spices for a very long time reduces their quality and taste. Besides this point, forgers employ deceitful tactics to sell spices in the market. They often pack entirely different contents in place of the original. For example, papaya seeds are used in place of black pepper or common wooden birch in place of cinnamon. In many cases, the spices are also dyed to make them look visually similar to the original product.

There are certain spices that are substituted or diluted. Fake labels are also placed on the packaging to give them the look of the original. Here are some common spices and their adulterants.

Cinnamon

In the U.S., what’s commonly sold as cinnamon is actually cassia, a cousin of true cinnamon.

Saffron

Those little orange threads you bought aren’t saffron, they’re probably flowers from other harmless plants, most often calendula.

Black Pepper

Papaya seeds sold as ground pepper are clearly mislabelled, but they won’t do you any harm.

Chilli Powder

Chilli powder has also been found to contain brick powder, talc, and even sand and dirt.

The problem of counterfeiting in liquor industry

Counterfeit alcohol is illegally produced and is often manufactured in unlicensed distilleries, the backyard of homes and even hideouts located at unknown locations of the city. Due to an increase in demand of alcohol-based beverages and an increase in tax on the same forgers are manufacturing large quantities of alcohol to reap maximum profits.

Counterfeiters are employing all kinds of tricks and cunning measures to make, package and sell fake alcohol in different locations. The most surprising thing about counterfeit alcohol is that it is sold on high prices and consumers are not able to determine the genuineness of the alcohol.

With the boom of globalization and pop culture, different kinds of alcoholic beverages are gaining popularity among the masses especially youngsters. Some of the prominent highly popular liquor forms are Vodka, Tequila, Champagne and Beer.

However, the most worrying thing about these alcoholic drinks is that they are being counterfeited on a vast level and it has become challenging for the manufacturers and consumers to identify the real products. According to an article published in Financial Times “Paul Varga, Chief Executive of Brown-Forman, told the Financial Times “A third of the world’s alcohol is estimated to come from what we call illicit production.”

Alcoholic drinks that are properly produced pass through strict quality control and different checks. These drinks are made with ethanol in a given proportion which is ideal and safe for human consumption.

But fake alcohol drinks usually have other adulterants which are harmful to the consumer and have inappropriate quantities of harmful additives. Drinking such type of alcohol can leave one blind, lead to liver or kidney failure, coma and even death.

According to Drinkaware’s Chief Medical Advisor Professor Paul Wallace explains: “Commonly used substitutes for ethanol include chemicals used in cleaning fluids, nail polish remover and automobile screen wash, as well as methanol and isopropanol which are used in antifreeze and some fuels. These other types of alcohol can produce similar effects to ethanol in terms of making you feel tipsy. But they are also potentially very dangerous.”

Drinking alcohol containing these chemicals can cause nausea and vomiting, abdominal pain, drowsiness and dizziness. It can also lead to kidney or liver problems and even coma. Methanol, a substance which can be used in fake vodka, may cause permanent blindness.

Some of the common adulterants used in fake alcohol are antifreeze chemicals, nail polish remover, screen wash and even low-quality unprocessed alcohol.

What is the level of counterfeiting in India?

The growth of technology and liberalization of the economy in India has created an ideal market for counterfeiters to inappropriately misuse the brand images that have evolved over time. The enormous growth has given rise to different kinds of fraudulent activities. However, it is the popularity which promotes counterfeiting of products among people.

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.

There are certain consumer goods and brands which have become easy to reproduce at low rates and have become common targets of counterfeiting. In India counterfeiting is a very common problem in almost all the industries. Counterfeit products are easily available in flea markets, street markets and roadside kiosks. No wonder, today, counterfeit products are available in the big shop, malls and popular stores.

In India counterfeiting is a growing problem and counterfeiting impacts not only organizations but also consumers. According to Authentication Solutions Providers Association, the counterfeiting industry in India is worth Rs 40,000 crores industry. According to a report by World Trade Market Review, “India’s consumer goods and retail sector is predicted to see sales soar by 40% over the next three years – making it the fastest-growing emerging market. Of this, it is estimated that brick-and-mortar sales will rise by a mere 10%, meaning that the bulk of growth is expected to come from online purchases. According to a report by the Confederation of Indian Industry and Deloitte, the online retail sector in India will be worth $1 trillion (Rs660 trillion) by 2020.” The report further states that “In India, it is estimated that about 80% of consumers buying counterfeit goods are victims of deception. Counterfeiters use photos and descriptions of genuine products to attract consumers, but then supply them with counterfeits.”

ICC to organize conference on ‘anti-counterfeiting, anti-piracy & brand protection’

In a bid to address the issues faced by organizations to fight to counterfeit in India, Indian Chamber of Commerce (ICC) is organizing a conference on Anti-Counterfeiting, Anti-Piracy & Brand Protection on January 21, 2019, at Hotel Shangri-La in New Delhi.

The conference will bring together Government, industry and other stakeholders under one roof to discuss the policy level issues and share the best practices and innovative ideas to curb the menace of counterfeiting, piracy and brand theft resulting in the strengthening of IPR protection ecosystem in the country.

Besides, the conference will also cover the economic and social issues arising out of counterfeiting; discuss key challenges involved in combating counterfeiting (policy and enforcement related), discuss sector-specific issues and share case studies; identify the role of technology in anti-counterfeiting and chalk out strategies for the industry.

The conference will give a platform to all stakeholders to discuss, share experiences and network with industry leaders and learn about the current and innovative practices in the industry to curb counterfeiting and protect the brand.

The keynote speakers for the conference will include-Secretary, Department of Industrial Policy & Promotion (DIPP), Ramesh Abhishek; Member (Customs), Central Board of Excise & Customs (CBEC) Pranab Kumar Das and stalwarts from private and government domains.

Source: Knnindia.co.in