The growth of anti-counterfeiting technology market

There has been a rapid growth of counterfeiting or duplication in different industries across the world. From medicines to food items, consumer electronics to apparels, footwear to FMCG products and much more has been encircled by the menace of counterfeiting.

As per the Global Brand Counterfeiting Report 2018, 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 which includes counterfeiting of all equipment/products from defence equipment’s to counterfeiting of watches.”

According to the report, “Losses incurred by Luxury Brands because of sale of counterfeiting through internet accounted for 30.3 Billion USD.” The above-stated figures present a grim picture of global business which is suffering from the pandemic called counterfeiting.

However, at the same time in order to protect their products and supply chains from counterfeiting, industries are using different kinds of anti-counterfeiting technologies. As per ISO 12931, all the anti-counterfeiting technologies can be categorized into overt, covert, forensic and digital.

Different types of anti-counterfeiting technologies are being used as per their requirements in different industries. The implementation of these technologies have reaped many benefits which in turn, popularized their application. According to a report by Markets and Markets, the Anti-Counterfeiting Packaging Market will reach a staggering $128.6 billion by 2019.

Here are the four important reasons which are responsible for the growth of anti-counterfeiting technologies.

  1. These technologies significantly reduce the incidents related to counterfeiting, adulteration and tampering and thus help in saving company profits.
  2. With the implementation of anti-counterfeiting technologies, brands can strengthen their image among consumers.
  3. Anti-counterfeiting technologies not just helps in securing the products but, also helps in safeguarding and monitoring of the supply chains.
  4. Anti-counterfeiting technologies also prevent IP infringement or violations.

High sale of counterfeits witnessed on Mother’s Day

According to the National Retail Federation, the shopping presents for Mother’s Day generated a whopping amount of $25 billion in sales. While many purchased gifts from genuine retail outlets, a lot of consumers bought a large number of counterfeit products. As per Red Points, 20% people bought fake products for Mother’s Day.

Laura Urquizu, CEO, Red Points says, “One out of three shoppers has purchased fake products intentionally”. The company surveyed around 1500 Americans and does not include any information on whether or not their mothers knew. According to Red Points, “Those who intentionally bought counterfeits mostly chose jewellery and watches.”

Urquizu says, “A counterfeit is an imitation of the genuine brand and uses its logo and packaging without permission. The intention of a counterfeit product is to deceive the customer into buying it. This is illegal and IP owners can take legal action against infringers.”

Global consumers spend about half a trillion dollars on counterfeit items every year, with more than 70% of goods being sold by online marketplaces, reports Medium. Among retailers accused in the past of selling fake goods are Chinese e-commerce website Alibaba and American online giant Amazon.

Source: Fortune

FICCI welcomes U.S Government’s action against counterfeits

The US President Donald Trump recently signed a memorandum on combatting the trafficking of counterfeit and pirated goods which will stop the sales of fake goods, especially on e-commerce platforms. In a statement applauding the work of US government, FICCI said that the Department of Homeland Security along with the Commerce Department, the federal agencies will create a report to curb fake goods in American marketplace within 201 days.

The report will determine the data, factors, market incentives and distortions which lead third-parties to involve in the trafficking of fake and pirated goods.

According to a study released by OECD, the business of fake and pirated products represents 3.3% of the global trade. The study also explains that the share of counterfeits has grown significantly posing a risk to the global economy. FICCI has been addressing the menace of illicit trade with regards to duplication, smuggling and piracy through its initiative CASCADE (Committee Against Smuggling and Counterfeiting Activities Destroying the Economy).

While speaking on the development Anil Rajput, Chairman FICCI CASCADE said, “This is a proactive step taken by the US President to curb the menace arising out of sale of counterfeits which adversely impacts the legal industry, government revenue and the health and safety of the people. Illicit trade also fuels organized crime. It threatens peace and stability worldwide, and hence all countries across the world must address the matter on war footing.”

FICCI CASCADE works in coordination with government, industry, enforcement agencies, media, legal experts and consumer organizations to develop awareness on counterfeiting and smuggling.

Source: Outlook India

What are the negative effects of counterfeiting on companies?

Counterfeiting or duplication is not only harmful to the consumers but is equally detrimental for the companies. Moreover, counterfeiting not just affects big brands- assumed by many but, also decimates the business growth of small companies.

According to a report by Research and Markets, “The total amount of counterfeiting has reached to 1.2 Trillion USD in 2017 globally and is bound to reach 1.82 Trillion USD by the year 2020.”

This monstrous growth of counterfeiting is a testimony to the fact that it is badly affecting the business growth and market image of companies. Counterfeiting leads to serious problems which may even in some situations lead to a complete shutdown of businesses. Let’s discuss the major impacts of counterfeiting on businesses.

1.Drop down in sales

Counterfeiting brings down sales of genuine goods. Consider a scenario in which the counterfeit of your genuine product is sold in the market at half of its price. This will attract many consumers who are willing to buy fakes and will negatively affect the sale of your genuine products.

New research from Mark Monitor, the world leader in enterprise brand protection, has revealed that almost half (47%) of brands lose sales revenue to counterfeit or pirated goods, with one in three reporting a loss of more than 10%.

With the growth of online shopping, it has become difficult to recognize fake products. Forgers usually copy the branding and packaging of genuine products making it difficult for one to recognize fake products. The infestation of e-commerce space with counterfeits has brought down sales of legitimate companies.

2.Loss of brand reputation

Brand reputation is critical for companies across the world. A piece of negative news involving the companies name can hit its reputation badly. Similarly, a counterfeit purchased by a consumer in place of the genuine product may fail to work or worn out in a few days. This will create a wrong impression in the minds of consumers about the poor quality of the brand’s products.

It takes years of hard work and consistent consumer satisfaction to create an iconic brand image for companies.

Since word of mouth publicity plays an important role in the brand image the consumers affected by fakes will provide negative feedback on the brand. Customers may also leave negative reviews on forums and websites which further ruins the brand’s image.

3.Loss of time and money in fighting fakes

When a company finds out that they are being impacted by counterfeiting they take certain measures to fight back. However, this can be time-consuming and involves a lot of money and resources. This leads to diversion of company’s money for fighting fakes instead of investing it in other developments.

Companies suffering from counterfeiting invest a good amount of money in hiring costly legal experts and fighting legal cases for securing their products and brand from IP infringements.

E-Commerce major Amazon has taken a new initiative for fighting fakes. The online company has initiated an anti-counterfeiting move known as ‘Project Zero’ which will allow brands to directly flag and delete fake listings themselves.

‘10% of our products in Asia are fakes’- Adidas

The international sports and apparels giant Adidas recently stated that 10 per cent of gear featuring its company’s world-famous logo in Asia were probably cheap copies.

Kasper Rorsted, Chief Executive for Adidas raised concern about the growing problem of fake sportswear products. In a shocking revelation, he said that 10% of the products featuring his company’s logo in Asia were mostly poor copies.

While talking to CNBC Rorsted said that the counterfeits are being sold both online and offline and issue of duplication is a major problem for his industry.

He also emphasized on the point that the problem of counterfeiting is quite prevalent in Asia and approximately up to 10% in some categories are duplicates.

He said, “We are seeing that in bricks and mortar, and we are seeing that online. It continues to be a big problem for our industry.”

Source: nzherald.co.nz

Why pharma companies must take counterfeiting seriously?

Pharmaceutical products are of vital importance to the healthcare system of every country. However, high incidents of counterfeiting in the pharmaceutical business has hampered the growth of the pharma industry and has wreaked havoc on the healthcare systems. According to the World Health Organization (WHO), 10 to 15% of the global drug supply is counterfeit and Africa accounts for up to 30% of the counterfeit medicine in circulation. A per another statistic it is estimated that 1 in 10 drugs sold worldwide is counterfeit.

One of the worrisome situations created by counterfeit medicines is their threat to human lives. According to a news published in The Guardian, “A surge in counterfeit and poor-quality medicines means that 2,50,000 children a year are thought to die after receiving shoddy or outright fake drugs intended to treat malaria and pneumonia alone.”

Lately, the problem of fake medicines has grown manifolds with the rise of e-commerce platforms. This has led to a growth of illegal online pharmacies as well as online marketplaces distributing them. Amidst this grim scenario, pharmaceutical companies must take product and brand protection seriously due to the following reasons:

To protect their consumers

An estimated 116,000 deaths have occurred in Sub-Sharan Africa due to counterfeit malaria pills. Whether the counterfeit is a placebo containing sugar or has been laced with cheap and dangerous chemicals, it is putting human lives at risk.

To secure their return on investments

The global pharmaceutical industry loses millions due to the sale of fake and sub-standard medicines every year. The EUIPO (European Union Intellectual Property Office) estimates that the EU pharmaceutical industry loses the equivalent of nearly 7% in sales per year due to counterfeit drugs which accounted for 26,9 billion Euros annually. No wonder, the pharmaceutical industry invests billions in R&D and counterfeiting badly affects their return on investments.

To safeguard their brand reputation

Counterfeit drugs ruin the image of pharmaceutical brands. Fake medicines also affect the reputation of generic medicines which are meant for the masses. Pharmaceutical companies must strictly ensure that their products are not being counterfeited.

U.S firms most impacted by counterfeiting as per OECD report

Street markets and shops are flooded with the counterfeit handbags, football jerseys and scarves. Fake products have massively crept into industries like footwear, fashion and even luxury brands. As per an OECD report the overall value of fake and pirated products across borders in 2016 summed up to $509 billion or 3.3% of the world trade. That’s up from $461 billion (2.5% of the world trade) in 2013.

With a total share of 75%, China and Hong Kong are the biggest hubs of fake goods followed by Turkey, Singapore and Germany who together accounted for global seizures in 2016.

However, looking at the countries most impacted by duplication presents a diverse picture. Between 2014 and 2016, 24% of the total value of duplicate items confiscated by customs around the world were violating IP rights of companies based in the U.S with French, Italian and Swiss firms badly affected.

Surprisingly, the majority of counterfeit or pirated items seized by customs authorities are shipped as small parcels. Around 69% of customs m seizures between 2014 and 2016 were carried by postal or express courier services and 85% of intercepted shipments contained fewer than 10 items.

Source: manufacturing.net

Footwear and clothing most counterfeited goods: OECD

According to a joint report by OECD (Organisation for Economic Co-operation and Development) and EUIPO (European Union’s Intellectual Property Office) the trade in counterfeit and pirated goods accounted to 3.3% of the overall global trade. However, the report cites facts and figures from the year 2016 and also does not mention about the rise of fake goods in e-commerce.

As per OECD and EUIPO, fake goods violate copyrights and trademarks, creates profits for organised crime gangs and jeopardizes the health of the consumers. The report mentions that poor screening of the small parcels, policy gaps like inconsistent penalties on traffickers and weak rules governing free trade zones can lead to the rise of fake goods.

Here are some excerpts from the report:

Top traded fake goods for 2016

  • Footwear was the topmost traded fake item at 22%, followed by clothing at 16%
  • Leather goods accounted for 13%
  • Electrical equipment for 12%
  • Watches at 7%
  • Medical equipment for 5%
  • Toys at 3%, jewellery at 2% and pharmaceuticals at 2%
  • Other industries accounted for 12% of the total fake traded goods

Origins, destinations and means

  • Majority of fake goods picked up by customs originated in mainland China and Hong Kong, along with the UAE, Turkey, Singapore, Thailand and India.
  • Countries most affected by counterfeiting were the US, France, Italy, Switzerland and Germany, with targets growing in Singapore, Hong Kong, Brazil and China.
  • Small parcels were 69% of the total customs seized parcels by volume from 2014-16 (57% via post and 12% via courier), up from 63% over the 2011-2013 period.

The complete report can be accessed here.

Source: Medianama

Global counterfeiting has grown 100 times-FICCI CASCADE

FICCI CASCADE (Committee Against Smuggling and Counterfeiting Activities Destroying the Economy) has raised a serious concern on counterfeiting and smuggling. The body believes that the global economy has suffered massive financial loss due to counterfeiting and there has been an increase in its volume by 100 times.

The experts from FICCI CASCADE while speaking at a seminar highlighted the importance of increased awareness on the hazards of counterfeiting and smuggling, and the need for effective enforcement to enhance India’s economic development.

PC Jha, Advisor, FICCI CASCADE and Former Chairman, Central Board of Excise and Customs, stated that during the last twenty years, the volume of duplication has increased 100 times around the world and the size of the trade in duplicate goods is 10 percent of the legal international trade. He finally stressed on the seriousness of the problem of illicit trade.

Deep Chand, Advisor, FICCI CASCADE and Former Special Commissioner of Delhi Police emphasized on the need for consumers being continuously made aware of the detrimental impact of illicit products. He further said, “Consumer awareness campaigns that explain how to differentiate a spurious product from a genuine product to demanding a copy of the bill from the seller, along with the harmful consequences of purchasing illegal products.

As per the FICCI CASCADE report published in 2015, the total loss to the government on account of illicit markets in just seven manufacturing sectors is Rs 39,239 crores. Amongst the various sectors, the maximum revenue loss to the exchequer is attributed to tobacco products. Estimating a revenue loss of Rs 9139 crores, followed by mobile phones at Rs 6705 crores and alcoholic beverages at Rs 6309 crores.

According to a FICCI report, ‘Illicit Trade: Fuelling Terror Financing and Organized Crime’, counterfeiting is the second largest source of income for criminal activities. The global loss to employment would stand at 4.2 to 5.4 million in the year 2022.

Source: uniindia.com

The multiple benefits of holographic wide web films

Packaging plays an important role in product safety, promotion and sales. In a highly competitive market environment packaging can boost the growth of the company. Market experts consider product packaging as the first communicators of the company. An ideal packaging must secure the brand against tampering and duplication, enhance its visibility, and must keep the content of the products intact and safe.

Of late, there has been a rise in the use of new packaging materials by product manufacturers. These packaging products are of high quality, can include different anti-counterfeiting features and most importantly provide an edge to the product against its competitors.

One of the most popular packaging products is holographic wide web film which is an effective flexible solution used for lamination, wrapping, packaging and a host of other purposes. The 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 holographic 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. High bonding strength, heat resistant and waterproof.
  4. Available in different colours and patterns, plain, light beam and patterns. Many designs are 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.