5 Facts About Counterfeit Products

5 Mind Blowing Facts About Counterfeit Products

Counterfeit or fake products are a worldwide problem. The sale of counterfeit products brings down the sales of manufacturers, impacts the brand images, evades tax revenue and most importantly affects the lives of end consumers. Over the past few years, the growing menace of fake goods has jolted economies worldwide and has emerged as a challenge for governments. In this blog, we list down 5 mind blowing facts about counterfeit products.    

1. Online sale of counterfeit goods is more than street sales

According to a report by US Trade Representative Office, the sale of online fake products is set to overtake the sale of street goods. This is due to the rise in penetration of internet, growing trend of shopping from homes and availability of a large variety of goods on a single platform. Moreover, a large number of legitimate courier companies are involved in the transportation of fake goods. Together all these factors have contributed to the rise in online fake goods.    

2. 3 out of every 4 fake goods are manufactured in China

The sale of fake goods has taken over the international business by storm. According to media reports, the majority of fake goods have their origin in China. Legitimate manufacturers are facing challenges due to the sale of counterfeit goods of Chinese origin. This has affected their profits and tarnished their brand image.  

3. Footwears are the most counterfeited goods worldwide

According to a report by OECD, footwear was the topmost traded fake item at 22%, followed by clothing at 16%. Another report by media states that Nike sneakers are the most counterfeited goods in the world. No wonder, the rise of fake footwear has created a problem for legitimate manufacturers who have invested millions of dollars in manufacturing and promoting their brands. 

4. Sale of fake goods fund terror activities 

According to Interpol, some of the most notorious terrorist organisations are involved in the trafficking of counterfeit goods. The money incurred from the same is utilised to fund other criminal activities. According to experts, the trade of counterfeit goods is relatively an easy criminal activity as far as regulations and laws are concerned. 

5. Trade in fake goods is 3.3% of the world trade

An OECD report stated that the sale of counterfeit goods has exceeded an amount of 500 billion dollar annually across the globe. This is 3.3 % of the world trade and is expected to grow in case of poor regulations, weak custom laws and the rising trend of knowingly buying fakes. 

Holostik is leading market player in catering anti-counterfeiting, smart packaging and supply chain visibility solutions. We have been securing companies worldwide from the menace of counterfeiting since 1991.

To know more about our solutions, connect with us @Facebook or call us on +91–785-785-7000 or drop us a mail at connect@holostik.com.

Top 5 benefits of using GS1 track and trace for Indian pharma companies

The distribution of fake medicines in the market spoils the brand image of pharma companies and leads to reduced sales. Continuous and unchecked counterfeiting of medicines can destroy pharma manufacturers and, more importantly, risk human lives.

Counterfeit medicines are rampant in Indian pharmaceutical marketplaces. Knockoffs of branded medicine can be found anywhere—from government pharmacies to big pharma stores and local drug outlets.

Problem of counterfeit medicines in India

According to a 2015 report by ASSOCHAM, 25% of medicines sold in India are either fake or of inferior quality. To quote a WHO report: “About 10.5% of medicines sold in low and middle-income countries, including India, are substandard and falsified.”

As one of the largest exporters of generic drugs and vaccines in the world, the Indian pharma industry accounts for every third dose of vaccine administered anywhere. Owing to concerns over bad reputation caused by the rampancy of fake medicines, the Indian government National Informatics Centre designed the “Drug Authentication and Verification Application” (DAVA) based on GS1 standards.

GS1-track & trace

GS1 standards make it possible to uniquely identify, capture and share important information on exported pharmaceuticals with regulators and patients, thereby further strengthening India’s reputation as a leading producer of quality and safe drugs.

“Benefits of GS1 track and trace for pharma companies”

Real-time information to authorities and patients

Provide real-time information to authorities and patients of pharmaceuticals manufactured in India.

Quick inspection of consignments

Pharma companies often face the challenge of slow movement through customs, both in India and abroad. Ensuring that your products are GS1-compliant will facilitate faster movement through customs by making it easy to scan barcodes and validating the data in DAVA.

Accuracy in dispatch processes

GS1 track and trace helps in efficient and automated FIFO (first in, first out) management and increases the accuracy of dispatch processes.

Competitive edge in the global market

Complying with the global and national regulations will provide Indian pharmaceutical manufacturers with a competitive edge in international markets.

International standing as a safe producer

Using GS1 standard track and trace will strengthen the international community’s confidence in India as a safe manufacturer of pharmaceuticals.

Consumer-end authentication

GS1 compliance will empower end-consumers to authenticate the final product and evaluate safety risks associated with counterfeits. As data becomes more complex, GS1 compliance allows pharma companies to ensure their global supply chain is easy to manage, accurate and reliable.

Holostik provides track and trace services to pharma companies in compliance with DAVA and GS1 standards to enhance supply chain visibility and efficiency.

To find out more, call us on +91–785-785-7000 or mail us at connect@holostik.com.

Your mobile company may be losing business due to duplicate phones

It’s nightmarish for mobile phone manufacturers if their original mobile phones are replaced with counterfeits and sold in the market. Besides, drop down in sales it also leads to poor brand image and loss of consumer trust.

In a recent incident of counterfeiting in Bhopal, a delivery boy of a courier company has been booked for allegedly swapping genuine mobile phones with counterfeits.

The courier boy used to deliver duplicate phones to consumers who had booked the mobile phones online. Police officials investigating the case said that matter came to light when a customer who received duplicate phone complained to the shopping portal.

The online company then alerted the courier company, which found one of the delivery boys was involved in swapping phones. According to the owner of the courier company the online retailer was getting complaints of fake phones being delivered to end consumers for the past five months.

Some facts on duplicate phones

Mobile phone manufacturers in India have been facing the problem of duplicate phones. In December, police seized around 2000 fake Xiaomi products worth 13 lakh from the Ghaffar market in Delhi.

Earlier a sting operation revealed that Delhi has become a thriving place for the manufacturing of fake mobile phones. Technicians assemble smuggled parts to manufacture counterfeit phones which are available at a fraction of costs.

According to a trade expert, “First-copy” smartphone market is a “low-margin, high-volume business.” A study conducted by EUIPO said that 180 million fake mobile phones are sold globally per annum.

Such a huge scale of counterfeit mobile phones clearly impacts the sales of genuine mobile phone companies. The sale of counterfeit phones hampers the profits and ruins the brand image of the manufacturers.

Anti-counterfeiting solutions from Holostik

Holostik provides a comprehensive anti-counterfeiting solution for mobile phone manufacturers against counterfeiting and tampering. With the help of our tamper-evident labels, manufacturers can take a sigh of relief against any form of counterfeiting. Any attempt to meddle with our tamper-evident labels will give a clear hint.

In addition, our advanced track and trace solutions offer the highest security for your product right from the production to end-consumer.

Our unique product line has helped manufacturers to efficiently fight to counterfeit and leverage their profits and brand image over the years.

To know more about our tamper-evident labels and track and trace solutions, call us on +91–785-785-7000 or drop us a mail at connect@holostik.com

Source: TOI, ET, Lexology.com

The close link between counterfeiting and organized crime

Counterfeiting is growing at a fast pace across the world. Different reports show disturbing figures related to counterfeiting.

According to Global Brand Counterfeiting Report, “The amount of total counterfeiting globally has reached 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 defense equipment’s to counterfeiting of watches.”

The report also states that losses incurred by luxury brands because of the sale of counterfeiting through the internet accounted for 30.3 Billion USD.

A report by OECD states that trade in fake goods is 3.3% of the world trade.

Link between counterfeiting and criminal activities

The above-mentioned figures clearly point towards the high growth of counterfeiting over the last few years, however, counterfeiting has also led to the growth of other criminal activities.

Many organized criminals deal in the sale of counterfeit goods as it is a lucrative business and there are less severe punishments to deal with it. With the penetration of the internet in far-flung places, criminals are making huge profits by selling counterfeits in the e-commerce space.

So, what do these criminals do with the money made by selling counterfeit goods? In most cases, they use it to fuel other criminal activities like human trafficking, illegal arms trade, drug trade, and even terrorism.

One can remember the Charlie Hebdo attacks in France in which many people died. The gruesome attacks were carried out by selling fake sneakers. Many international organizations have established a close link between counterfeiting and other criminal activities.


Counterfeiting is a growing menace across the world. The crime promotes other heinous crimes and the vicious cycle continues without an end. However, counterfeiting can be prevented by increasing consumer awareness, strict implementation of regulatory measures and ensuring the use of anti-counterfeiting solutions.

To get the best of anti-counterfeiting solutions to safeguard your product and business call us on +91–785-785-7000 or drop us a mail at connect@holostik.com.


UK authorities seize fake Gucci, Burberry, Nike & Apple goods before Christmas

In a recent drive against fake products, border police officials in UK seized thousands of imitation products originating from China. The total value of seized products is estimated to be around £3mn.

Last month, officials confiscated 1,300 scarves which were allegedly being sold by brand names like Chanel, Burberry, and Gucci. Fake scarves with an overall value of £904,775 were confiscated at the London Gateway Port. In addition, counterfeit North Face jackets, Levi t-shirts, and Lyle & Scott jumpers were confiscated from the same site.

In the area of Milton Keynes, hundreds of fake bags of Gucci, Yves Saint Laurent and Versace, duplicate sneakers of Converse and Nike were seized by the authorities. Almost £300,000 worth of bedding marked with the Gucci, Chanel, and Versace logos have been seized at the same centre, as have £778,000 of fake Beats and Apple headphones. Also, more than 200 Estee Lauder skincare sets have also been confiscated at Heathrow Cargo.

In order to check the sale of counterfeit products border, police officials check the product’s genuineness with the brand owners. Any product found to be fake is destroyed after which the right holders decide whether to pursue a private prosecution against the importers or not. Commenting on the incident Security Minister Brandon Lewis said, “People who deliberately buy fake products are supporting serious and organized criminals.”

Source: news.sky.com

The rising problem of knowingly buying fakes

The world is flooded with counterfeit products of all kinds, from fake Louis Vuitton bag to phoney Tissot watches, counterfeit Cartier pens to duplicate Adidas sneakers, fake Apple devices to fake MAC makeup kit- the list seems endless.

However, counterfeiting not just impacts luxurious brands but also affects those products which are affordable for the common man. With the growth of online trade, a large number of fake products and accessories are being sold online. Of late, global e-commerce giants like Amazon and Alibaba are suffering from the menace of counterfeit goods.

According to a report by Research and Markets, the global value of counterfeiting has reached a monstrous value of more than $1 trillion.

Impact of buying decisions on counterfeiting

Consumers play a major role in the impact of counterfeiting. While numerous buyers are being duped with fake products, there are many who knowingly buy fakes.

A recent report by OECD states that a large number of buyers in the UK were knowingly buying fakes. The report states, “Bulk of purchases of fashion and luxury-specific fakes did not occur by chance. Instead, nearly 60% of purchases of counterfeit fashion items in the UK were done intentionally by consumers who knew that they were buying fakes.”

According to a survey conducted by Civic Science in the US, “Around 10% of respondents had purchased a counterfeit knowingly.”

Over the years, there are many factors that have contributed to the rising consumer trend of knowingly buying fakes. Some of them are a rise of social media influencers, pop culture and a personal likeness for brands and luxurious goods. In a scenario when the common man is not able to purchase original costly items, he or she resorts to buying fake items- for fulfilling the desire.

The problem due to knowingly buying counterfeits

No wonder, there are numerous problems caused due to fake goods, however, in most cases, a consumer is not aware if he or she is buying a counterfeit or not.

The problem of knowingly buying fakes is a grave concern because in this scenario the consumer is promoting the sale of counterfeits. In such a case, awareness regarding fake brands turns futile and manufacturers are not able to take concrete action.

To deal with the same, strict regulatory measures should be implemented which prevent the sale of counterfeits on all the platforms. Moreover, manufacturers should resort to secure packaging solutions for enhanced supply chain security and inventory visibility.

Holostik’s anti-counterfeiting solutions

Holostik is a leading player in catering wide variety of anti-counterfeiting and IT-enabled supply chain solutions. Our products like security holograms, security labels, wads, shrink sleeves combined with digital authentication help in preventing counterfeits and the safety of the supply chain.

To know more about solutions, you can call us on +91–785-785-7000 or drop us a mail at connect@holostik.com

Man orders iPhone on Flipkart, gets a counterfeit instead

In the last few years, counterfeiting on e-commerce portals has grown manifolds. The internet is flooded with all kinds of fake and substandard goods. In a recent incident of counterfeiting, a Bengaluru based man received a fake iPhone instead of iPhone 11 Pro that he ordered on Flipkart.

According to International Business Times, Rajani Kant Kushwah ordered iPhone 11 Pro on the famous e-commerce website Flipkart. He made a payment of Rs 93, 900 after a discount expecting that the phone would be delivered without any hassles. However, when he received the phone, he was shocked to know that the phone was a counterfeit.

As per IBT, Kushwah got a counterfeit iPhone with a sticker of the iPhone 11 Pro triple camera setup affixed on the back of the phone.

The counterfeit phone delivered to Kushwaha looks exactly like the phone he had ordered. However, on looking closely one can distinguish between the two. The counterfeit version has the camera lenses and the rear camera module highlighted through a silver lining, however, the rear camera module in iPhone 11 Pro softly blends into the back, making it appear like a single unit.

Rajani Kant said that he got the wrong phone on which the iOS was not running, moreover, it had android apps mixed with the phone’s system. Thereafter, he contacted Flipkart regarding the matter, after which the company assured him that the phone would be replaced soon.

In a similar incident last year, a Mumbai based man ordered iPhone 8 on Flipkart for which he made a payment of Rs 55,000 online. However, he got a detergent bar in the delivery box.

Source: Indiatoday.in

Fake HP products worth 80 crores seized across India

The international information technology giant has recently seized products worth Rs 80 crores in India. The seizures have been a part of the company’s Anti-Counterfeiting and Fraud (ACF) Programme.

The program helps in preventing the production, distribution, and sale of fake ink ad toner printing supplies.

Among the country-wide seizures Delhi NCR ranked first with the total seizures valuing Rs 33.5 crores, Bangalore was second with seizures worth Rs 22 crores, followed by Mumbai and Chennai.

HP revealed that the law enforcement agencies conducted raids at over 170 premises resulting in 144 arrests across India.

The confiscated products included unfinished cartridges, packaging materials and various sets of labels. The fake items were used in manufacturing fake HP printing supplies.

The company further said that the large and medium-sized HP customers can request a customer delivery inspection if they feel that they have received counterfeits. HP as of now protects its partners and customers from counterfeit products through its channel partner protection audits (CPPA).

Source: ThemobileIndian.com

Club Factory faces the menace of counterfeit products

Club Factory- Chinese e-commerce has run into trouble for selling counterfeit goods on its platform. In a recent incident related to counterfeiting, a Lucknow based customer filed a police complaint about selling fake products.

The customer has filed an FIR against Club Factory and its top executives – for hatching a criminal conspiracy by advertising heavy discounts and then shipping fake items.

In November 2019, the complainant had ordered a Titan watch and Ray Ban Sunglasses at 86% and 90% discount. After receiving the alleged counterfeit, the customer reached out to Club Factory but didn’t get a clear response.

He also asked the company to send an invoice with the name of the seller, but it wasn’t provided to him. Thereafter, the customer approached both Ray-Ban and Titan to verify the authenticity of the product and cam to know that they don’t sell their products online.

The complainant also accused the company’s customer care executive of abusing and threatening him of dire consequences.

In the month of September, Delhi’s custom department had confiscated the goods imported by the company for not complying with Customs Act 2962. The officials claimed that the imported goods were wrongly tagged for business to business shipment however it was for business to consumer.

Source: Inc42

Police seizes fake water filters in Bengaluru

In the city of Bengaluru, poor drinking water quality and growing anxiety levels among the people, are being exploited by those selling counterfeit water filters.

Recently, the Bangalore Police raided shops selling water purifiers and accessories and discovered fake replacement filters sold with the logo of a popular brand. A police official said that most households are installing filters due to the fear of poor quality of water. Fake operators are taking advantage of this situation and are selling fake reverse osmosis filters.

A shop keeper in JP Nagar has been arrested for allegedly stocking ordinary filters, membranes and other spare parts with the logo of a popular brand. The police also seized fake stickers of Kent water filters along with 19 kits. Each comprised of RO membrane, carbon filter, sediment filter, post-carbon filter and UF membrane.

Commenting on the seizure, a Kent RO spokesperson said that fake products are harmful to the consumers as they do not remove contaminants effectively. Officials said that a fake filter usually weighs lighter as it is made of cheap quality and urged to buy water filters from authorised dealers only.

Source: Times of India