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.

The problem of counterfeit goods is rising on Amazon, says AAFA

In a letter addressed to United States Trade Representative, American Apparel and Footwear Association (AAFA)- the trade group comprising of more than 1000 brands across the fashion industry wrote about the growing concern of counterfeiting on Amazon. Last year, AAFA had recommended adding Amazon websites in Canada, Germany and the United Kingdom to the list of notorious markets. Now the association is asking to include Amazon marketplaces in France and India to the same list.

AAFA identified around eight online markets as well as 130 physical stores involved in the sale of counterfeit goods. “Despite its role as a leader in the worldwide retail landscape, and as an important selling partner for many of our member brands, Amazon continues to present significant counterfeit challenges,” said AAFA president and CEO Rick Helfenbein.

“While we are happy to have seen increased engagement with Amazon on brand protection issues during the past year,” he added, “that engagement regrettably has not translated into a discernible decrease in counterfeits of our members’ products on Amazon’s marketplaces.”

The e-commerce giant has been facing accusations due to the sale of counterfeit products. With its expansion, Amazon has been increasingly reliant on third-party sellers to meet the increasing demand. However, the Seattle based company lacks full control over the third-party sellers which leads to the sale of counterfeit products.

In the past few months, Amazon has clamped down on fake products with the launch of Project Zero. The anti-counterfeit initiative uses an automated scanning tool and product serialization service, which helps to verify the authenticity of a purchase. Earlier in July, a federal appeals court ruled that Amazon can be held accountable for defective goods sold on its website by third-party merchants.

Source: Footwearnews.com

How does counterfeiting affects the economy?

Counterfeiting is a trillion-dollar illegal business having its presence in almost every part of the world. Today, counterfeiting is posing a threat to not just the consumers but also to the economic growth of the nations.

The menace of counterfeiting has reached a global value of trillions of dollars. Counterfeit products are not just posing a threat to the legitimate manufacturers but also to consumers. We often come across news reports from different parts of the world where consumers have been badly affected by fake products.

As per a joint report by OECD and EUIPO, “Global sales of fake and pirated goods have soared to 460 billion euros ($522 billion) a year, amounting to a whopping 3.3 percent of world trade.” The report also states the nations most affected by counterfeiting which includes the United States, Japan, South Korea, and the EU states. However, the effects of counterfeiting are not just visible in developed countries but are also hampering the growth of the developing world.

According to ASPA the value of counterfeiting in India has reached one lakh crore annually and is causing big trouble to the national economy.

Let’s discuss some of the negative impacts of counterfeiting on the economy of the country.

  • Evasion of taxes: The growing counterfeit products industry thrive in the market without paying taxes to the government. Unlike genuine manufacturers, they evade taxes that are necessary for the government exchequer. This prevents the government to sufficiently spend on welfare projects and schemes.
  • Rise in unemployment: Counterfeit products cause monetary losses to the manufacturers. Due to the slowdown, they are not able to recruit new employees. The financial instability of the industries creates massive unemployment which is linked indirectly to the problem of fake products.
  • Diminishes foreign investment: It has been generally seen that countries with weak IP laws and poor regulatory measures become the breeding ground for counterfeit activities. Such countries blur their chances of foreign investments. Counterfeiting diminishes the chances of foreign direct investments and thus block the economic growth of a country.
  • Promotes other black-market activities: Counterfeiting fuels other black-market activities and is a lucrative business for organized criminals. With the money acquired from the sale of counterfeits, they fund their vast network, which is involved in drug trafficking, human trafficking, illegal arms, prostitution, etc.

Finally, we can conclude that counterfeiting has multiple negative effects, which are very harmful to the economic growth of the country if not checked on time by authorities and the respective governments of their countries.

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

The challenges faced by manufacturers due to counterfeiting

There has been a sharp rise in the number of fake products across the globe. Counterfeiting is impacting consumers, manufacturers and governments. Almost every industry is affected by the problem of duplication. According to a joint report by KPMG and FICCI the counterfeiting business us going to become $1.90 -$2.81 trillion industry by 2022.

Organizations are trying their level best to counter the threat of duplication. The added costs in fighting fakes comes as an extra burden. Besides the company facing duplication has to deal with poor brand image which often takes years to build.

Let’s discuss some of the negative impacts of counterfeiting on manufacturers:

Loss of sales revenue and profit margins: No wonder, a good amount of sales is synonymous with the growth of the company. The sale of duplicate items leads to a drop-down in the sale of a company’s products. If it goes unchecked, then it can lead to a complete downfall of the company. Due to multiple sale locations of the product, it is quite hard for a company to trace the manufacturing location of counterfeits.

Poor brand and product image: No wonder, the sale of counterfeits lead to a tarnished image of the brand and its products. The sale cheap fakes lead to a false perception among consumers regarding the quality of the product and the brand. Unaware consumers often think that they are buying original products but instead, they receive fakes.

Added cost on fighting fakes: Companies have to incorporate different strategies for fighting counterfeiting of their products. This comes in the form of added costs for the organization already facing the problem of duplication.

Counterfeiting causes losses worth billions of dollars to the global economy. However, with the help anti-counterfeiting solutions manufacturers can fight the menace of duplicate products. Holostik is an industry leader in providing the best anti-counterfeiting solutions as per the client’s needs.

One lakh crore lost annually in India due to counterfeit products- ASPA

According to a new report by ASPA (Authentication Solution Providers’ Association), India suffers a loss of over one lakh crore Rupees per annum due to sale and purchase of fake goods by consumers from all sectors.

Nakul Pasricha, President ASPA said, “Counterfeiting is most prevalent in the pharmaceutical industry.” Mr. Pasricha has also urged the government to take adequate steps to mitigate such risks. He stressed on the need for proper implementation of authentication solutions, enforcement, awareness and monitoring which will reduce counterfeiting in Indian by 50% which would save around fifty thousand crore rupees per annum.

While quoting from a report of OECD (Organisation for Economic Co-operation and Development), Mr. Pasricha said that in India trade of counterfeit goods has increased steadily in the last few years whereas globally the volume in fake products now stands at 3.3% of the total global trade which causes a massive loss to brand owners in terms of revenue.

ASPA’s President also discussed about different technologies available against counterfeiters which include anti-tampering, tracking and tracing. He gave an example of Nigeria where the adoption of physical and digital authentication solutions has reduced the rate of counterfeiting from approximately 20% to 3.5% in the Pharma sector in three years.

He cited the high return of investment and positive impact of anti-counterfeit solutions around the world, Mr. Pasricha expressed confidence that India too will be on the road to adopt authentication technology.

Source: Lexology.com

Reports & Data: Anti-counterfeit packaging market to reach USD 248.90 Billion by 2026

According to Reports & Data, the global anti-counterfeit packaging market is forecasted to reach a value of USD 248.90 billion by 2026. As per the report, the massive rise in globalization has increased the level of counterfeiting across the globe. Duplicate goods include jewellery, electronic items, apparels, medicines, tobacco products, liquor and much more. Due to this trend, secure packaging is witnessing high demand among different industries.

Anti-counterfeit packaging involves the action of assigning secure packaging to the product so as to minimize the incidents of counterfeiting and infringement. Currently, the market of fake products is growing across the globe at an alarming rate and manufacturers are finding it harder to counter the threat. Among the many sectors pharmaceutical is one of the worst-hit by counterfeits. Fake medicines include the proliferation of dangerous and illegal substance used in counterfeit drugs.

Organizations are using different anti-duplication packaging to counter the imitation and confirm the safety of items. Counterfeiting leads to a reduction in profits and loss in the brand image for the affected company.

In the year 2018, North America had the largest share at 31.4% in the anti-counterfeit packaging market. The report states that the high demand from healthcare products, electronics, food and beverages, and cosmetics is pushing the growth in this market. Moreover, awareness among consumers is leading to an increase in the demand for transparency which in turn is boosting traceability of the products. In order to cater to the rising demand, manufacturers are coming up with innovative technologies in equipment with specific functionalities for efficient identification and tracking of products.

Other key findings of the report:

  • Barcodes held the largest market share of 21.8% in the year 2018. The barcode is a series of numbers which, when decoded, identifies the product by date and place of manufacture. These codes are one-dimensional, and the information included in them is limited by the maximum available number of characters that can be scanned or printed at a time.
  • Overt Feature is forecasted to grow with the higher CAGR of 10.9% during the forecast period. This feature enables instant authentication of packaging via visual inspection by a layman. An optically variable feature like holographic devices within designs and color shift links are some of the most common and effective overt security features.
  • Counterfeit medicines in pharmaceutical are among the most lucrative sectors of the global trade. Fake drugs kill or harm millions across the globe and inflict some severe damage to the brand names of big pharmaceutical manufacturers. Lifesaving drugs are also included from the trade-in fake medicines. Healthcare & Pharmaceutical held the largest market share of 24.6% in the year 2018.
  • The Asia Pacific region is forecasted to grow with the highest CAGR of 10.7% during the forecast period, owing to the development of the anti-counterfeit packaging market in China and India. Increasing awareness among consumers has led consumers to check the product-related information before purchasing products, in turn, increasing the demand for anti-counterfeit packaging in this region.

Source: www.globenewswire.com