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

Man caught in Surat with fake goods worth Rs 7.61 lakh

A man who was in the business of selling fake detergents, masalas, shampoos, and soaps was arrested by police from Dindoli area of Surat.

The police seized different types of fake goods worth Rs 7.61 lakh from his godown.

Police said that they will request the court to remand him in their custody for maximum period to actually know how for long he has been into the business of selling fakes and also know about the source.

Dindoli police said that Pukhraj alias Prakash Kalal, 47, was involved in the sale of readymade soaps, detergents, etc. The products were cheap counterfeits of famous branded products that he used to sell to retailers.

The menace of fake products came in the light when Dharmesh Panwala, who had a shop in Chauta Bazaar found something wrong with more than 1,000 such 8gm packets supplied to him by Kalal. He registered a police complaint against Kalal on January 1. After the complaint, police raided Kalal’s godown and found items worth Rs 7,61,029 of different brands. Police also verified the genuineness of the product with different company officials and found out that the products were fake.

A police officer said that they had arrested the accused for cheating and under the copyright act. He also said that they also determine about the supply source and chain of supply.

According to ASPA (Authentication Solution Providers Association), the overall value of counterfeiting in India has reached to a large amount of 1 lakh crore annually.

Counterfeiting badly affects manufacturers, buyers, and government thus hampering the overall economic growth of the country.

Source: TOI

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.

Conclusion

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.

 

Counterfeit auto parts, a big threat for the automotive industry in India

According to media reports, counterfeit auto parts industry in India has reached to a value of around Rs 22,000 crore leaving behind car and bike sales in the last five years. In India, some of the most commonly counterfeited auto spare parts include brake pads, spark plugs, lamps, cables, alloy rims, grills, filters etc.

Cheap auto components don’t just damage your vehicle but are also a threat to your life.

Around 20% of road accidents in India are caused due to fake automotive parts- FICCI CASCADE

The FICCI report also states that fake auto parts led to a revenue loss of Rs 2,200 crore to the government in the past years.

Negative impacts on the automotive industry

No wonder, counterfeit auto parts have many negative impacts including accidents and even death. Remember, the idea of deliberately buying a fake & cheap auto part may cost your life. Fake auto parts usually break down or malfunction without a hint. For example, a fake brake pad may fail in an emergency situation and may lead to a fatal accident.

Counterfeit auto parts also lead to major revenue losses for manufacturers every year. Besides, they also overburden the manufacturers with extra costs for fighting fakes. Along with consumers and manufacturers, the government loses a large amount of taxes due to the sale of counterfeit auto parts. Quite evidently, huge evasion of taxes is a bane for the country’s economy.

Solutions to prevent counterfeiting

Holostik is an industry leader in providing anti-counterfeiting solutions for the automotive sector. Its vast range of anti-duplication products combined with IT-enabled solutions helps to secure the products and supply chains. Holostik’s approach of catering customised anti-duplication solutions had shown effective results for automotive companies.

The auto component after-market reached to a staggering value of Rs 67,491 in 2018-19 crore however, the counterfeit market is also growing at a fast pace. In such a scenario, diligent use of anti-counterfeiting solutions can prevent counterfeiting by securing products and supply chains at the same time.

To know about our anti-counterfeiting & IT-enabled supply chain solutions, call us on +91–785-785-7000 or drop us a mail at connect@holostik.com

Two people in Mumbai held with counterfeit currency worth over Rs 5 lakh

In a recent incident, two persons were nabbed by the police for allegedly possessing counterfeit currency with a value of Rs 5.44 lakh.

The police first caught Chunilal Suthar, a resident of Jhalor in Rajasthan, at a check post in Gujarat’s Surat city as confirmed by a police official from Pune police station. A school bag containing fake currency worth Rs 3.38 lakh were recovered from the accused, who was travelling in a luxury bus from Rajasthan, he said.

The official said that the accused was travelling from Rajasthan and had the fake currency worth Rs 3.38 lakh in a school bag. During the interrogation, Chunilal revealed that he was going to deliver the notes to Chandrakant Shah a resident of Adajan in Surat.

After the tip-off police arrested Shah and confiscated fake notes worth Rs 2.06 lakh from his house. Around 642 counterfeit currency notes in the denominations of Rs 2000, Rs 500, Rs 200 and Rs 100 were recovered from the duo with an overall value of Rs 5.44 lakh.

The accused have been arrested under sections 489B (using as genuine forged currency notes) and 114 (abettor present when offence committed) of the Indian Penal Code.

Source: PTI

Wad- an impeccable product against spillage and counterfeiting.

Wads are circular in shape and are made of paper and foil, these unique packaging products are used for covering the openings of bottles, cans, jars, etc. Wads are also known as induction liners or cap seals in the field of packaging. Holographic wads are induction sealing wads that prevent leakage, tampering, contamination and illegal dealing of different products – with the added feature of holography. Wads help in closing the mouth of products that keep it safe from spilling and tampering.

For making holographic induction sealing wads a holographic foil is laminated with aluminum foil which is further coated with a layer of wax and LDPE (low-density polyethylene) thus making it water-resistant. These sealing lids or wads offer extra security for bottle and container packing.

Holostik offers different kinds of wads with different features including digital authentication. There are many benefits of holographic wads that protect the product from pilferage and tampering and providing a unique identity to the product. Holographic security wads are used in different industries like pharmaceuticals, agriculture, food, beverages, cosmetics, paints, automobiles, stationary, etc.

Let’s discuss the usage of holographic security wads in some industries.

  • Medicines: Holographic wads are mostly used by medicine companies to seal bottles securely and hygienically by using sealing machines.
  • Automotive lubricants: Holographic wads prevent lubricants from spilling from the bottle. Moreover, they provide identification and security to lubricant manufacturing companies.
  • FMCG:  A lot of products like hair oils, eatables like sauces, ghee and other such products are secured with holographic wads.

In case you want customized wads for your products then you can call us on +91–785-785-7000 or mail us at connect@holostik.com

The impact of counterfeiting on the common man

Many people don’t take the crime of counterfeiting seriously, they think that counterfeiting will not impact their lives, however, the fact is that counterfeiting has many negative impacts on the common man and thus has been named as the ‘Crime of the 21st century by Federal Bureau of Investigation.

On the global scale, the value of counterfeiting has reached a high of approximately 1 trillion dollars whereas, in India, the figure has shot up to I lakh crore annually. These figures clearly show the grim scenario of the situation.

Counterfeiting not only impacts the global economy but is a challenge for the governments, business organizations and most importantly the consumers. Counterfeiting not just dupes the consumer of his hard-earned money but also affects his health, besides this, there are many far-reaching impacts of counterfeiting on consumers. Let’s discuss the same.

Negatively affects the consumer’s health: What could be more dangerous than a counterfeit life-saving drug. Counterfeit medicines have created havoc in the industry, and it has become increasingly difficult to control them. Counterfeit or substandard medicines can have serious side effects on the human body and in some cases can even lead to death.

Dupes the consumer financially: Consumers who unknowingly purchase fake goods have to pay an actual price for a counterfeit. While it may sound good to purchase an original product at high prices but for a counterfeit, it is not at all good in any sense as you have compromise on quality.

Creates unemployment: There is a clear link between the rise of counterfeiting and the rise in unemployment. The business of counterfeits leads to monetary losses for the manufacturers which in turn affects the expenditure on current and future employees.

Poor infrastructure: Today’s common man needs beyond ‘roti, kapda, and makaan’. The government spends a good amount of money every year on rural and urban infrastructure. This money is collected from the taxes levied by the government on the business organizations and the common man. Since counterfeits evade taxes it leads to a drop-down in the money spent on infrastructure and development.

How supply-chains can be secured against counterfeiting

From knock-off fashion accessories to fake mobile phones, automotive parts and pharmaceuticals, counterfeiters manufacture and sell inferior goods using another company’s trademark, brand name, logo or appearance. Benefiting from rapid developments in technology, these organizations use sophisticated means to duplicate items, making it quite difficult for customers to identify the true source of the products they purchase.

Counterfeiting is a serious crime punishable globally by fines that may run into millions of dollars and imprisonment of up to 20 years. Despite this, the counterfeit industry continues to cost the world economy hundreds of billions of dollars each year.

One of the biggest threats faced by companies is the problem of duplication. Counterfeiting or duplication can take place at any stage of the supply chain. Since the supply chain encompasses different stages, therefore, it is difficult to individually monitor each of them. Moreover, it is manually not feasible to examine loopholes or any errors in the supply chain.

Of late, different kinds of technologies are being used to secure and monitor supply chains. Particularly IT technology in amalgamation with holographic technology is being used by companies worldwide. A good example is the use of barcode or QR code which not just digitally authenticates the products but also links it with different IT-enabled technologies like track and trace, supply chain management, reward management, inventory management, marketing campaigns and other functionalities.

Digital authentication through a QR code and barcode take place on the individual product, pack, case and pallet level. Variable and unique QR codes are difficult to copy and provide security on each level of the supply chain. Holostik is a pioneer of anti-counterfeiting solutions and provides a range of holographic and digital authentication solutions for securing supply chains. Our security holograms enabled with digital authentication solutions helps in providing a multi-layered security approach to the product and the company’s supply chain.

How to stay safe from counterfeits this festive season

The start of the festive season marks the beginning of huge discounts, alluring deals, cashback offers and a lot of other perky things. These enticing offers instantly catch your attention and motivate you to avail them at the earliest. Seeing a huge slash in prices you are tempted to buy your favourite items. However, many times these offers are too good to be true and you may receive a counterfeit or spurious product in the garb of a festive offer.

So before making the purchase you must consider certain points, let’s discuss the same.

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.

Buy from 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 too 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.

To know more about our products and solutions call us on +91–785-785-7000 or mail us at connect@holostik.com.

What are the negative impacts of counterfeiting in the tobacco industry?

Did you know that counterfeit cigarettes can contain arsenic, pesticides and even rat poison? Well, there have been numerous instances across the world where authorities have seized large stocks of fake cigarettes, phoney cigars and other cheap grade tobacco products.

According to a report by UK daily Independent, “Almost 45 billion fake cigarettes, which can contain arsenic, pesticides and rat poison, are smoked in the UK each year.”

However, the problem of fake tobacco is on the global scale and different countries are facing the onslaught of counterfeit tobacco products. According to a report by FICCI CASCADE, “The illicit tobacco market is expected to grow by 16% by 2020.”

Such alarming figures point towards a grim scenario where not just tobacco product manufacturers but also the consumers will have to face many negative outcomes. Some of the harmful effects of fake tobacco products are as follows:

  • Fake tobacco items bring down the sale of legitimate manufacturers and suppliers.
  • Counterfeit tobacco products lead to massive revenue losses every year for the government.
  • Fake tobacco products are highly toxic for the consumers and thus jeopardize their health.
  • Counterfeit tobacco products lead to an increase in other forms of criminal activities.

Experts believe that a rise in tax, high prices of tobacco goods lead to the popularity of counterfeits. Governments are now strictly dealing with the sale and supply of fake tobacco products. Customs officials and police authorities are keeping a close watch of criminal networks dealing in the trade of fake tobacco products. Besides government monitoring, use of different anti-counterfeiting solutions is also safeguarding tobacco-based products against duplication.

Holostik is one of the pioneers in providing high quality customised anti-counterfeiting solutions. The company provides a gamut of security products to the tobacco industry which includes tax stamps, security holograms, security pouches, wide web films etc.

To get anti-counterfeiting products and solutions from us call us on +91–785-785-7000 or mail us at connect@holostik.com.