While the global supply chain has unlocked a myriad of opportunities for businesses worldwide to expand and prosper, it has also enhanced the black market for fake goods and products. This won’t go away anytime soon, and the demand for efficient counterfeit identification will only continue to increase.
It is no secret that counterfeit goods are a booming business. According to statistics from the Organization for Economic Co-operation and Development, counterfeit goods sum up 3.3% of the global trade volume. As of 2016, the global market for counterfeit products was worth 1.2 trillion dollars, and it is expected to get close to the 2 trillion dollar mark by the year 2020.
What Does Counterfeiting Mean for Your Business?
Businesses who are targeted by counterfeits suffer repercussions in various ways, including the loss of sales, fraudulent warranty claims, overproduction costs, and damages to the brand image and reputation. A brand whose products have been counterfeited in the market worldwide captivates customers for being cheap at half the price, resulting in the loss of a fortune for the authentic brand.
Additionally, the poor quality of counterfeited goods hampers the brand reputation brand and compromises the long term relationship with an existing or potential customer.
This is where anti-counterfeiting and authenticity verification comes to the rescue.
Authenticity Verification and Anti-Counterfeiting
Although governments are cracking down on counterfeits, every business must introduce single or multiple levels of security systems to help them eliminate the problem of fake products. Here, authenticity verification and anti-counterfeiting work hand in hand in identifying forgeries and fraudulent tactics and eradicating them.
Small businesses are increasingly turning to cost-effective authenticity verification solutions like serial numbers, 2D codes, and QR codes. One problem is that these reasonable security solutions can easily be copied. Some high-end solutions that provide increased security are safety features like tangents and security inks. On the other hand, incorporating such sophisticated systems are unaffordable for small businesses.
Security labels, online monitoring, and copy-proof fingerprints are gaining massive popularity among businesses that invest heavily in authenticity verification. Widespread awareness about rampant counterfeiting strategies backed by advanced technology makes it possible for corporations to keep their products from being counterfeited.
This is why authenticity verification and anti-counterfeiting as they are two sides of the same coin.
Distinguishing Between an Original Product and its Counterfeit
Counterfeit goods can easily be distinguished from the authentic version. Here are some tell-tale signs that the product is fake.
The discounts on counterfeit products are often unreal. People easily fall for cheap products, especially when shopping online. If you come across a seller offering hefty discounts on their products, you must always take it with a grain of salt.
Don’t let a seller fool you into buying the counterfeit product of a famous brand. Grammatical errors and spelling mistakes on the packaging raise red flags. Look out for mislabeling and text that seems out of place if you are buying products from a random retailer.
Poor Product Quality
In most cases, individuals using a counterfeit product are unaware that it is a fake until they start using it and come to terms with its poor quality. It is best not to use poor quality consumable dupes of original products as such dupes are not only a waste of money but can even harm your health.
It is essential to check if the product comes with accessories and supplementary parts. Check for warranty cards, instruction manuals, and other accessories that the original product is supposed to come with. If you find any such accessories missing, do not buy the product. In case you have already invested in one such counterfeit product, return it to the seller immediately and ask for a refund.
Irrespective of the fact that renowned brands spend heavily on the packaging, almost 10% of the total product cost according to a University of Florida study, it is entirely possible to come up with a counterfeit. In some cases, you will have a hard time differentiating between the original product and the fake one. However, take note of the product’s packaging as it gives away a lot about the product’s authenticity. If you find the packaging to be flimsy and cheap, then reconsider your decision to buy it.
Top Anti-Counterfeiting Techniques for Your Business
If you are a business owner, there is no better way to vouch for anti-counterfeiting than being aware and spreading brand awareness. Take the following points in consideration for your next anti-counterfeiting program:
Interact with Your Supply Chain
Create awareness of counterfeits in your supply chain. Involve your suppliers, distributors, and retailers in the program and elaborate on the nature of the problem and the best possible solutions. Your supply chain must know about how counterfeiting works and what it means for your business.
Make Retailers Aware
Retailers selling counterfeited products are most affected in the event of the discovery of the fake goods. You may enlist the retailers functioning in a particular area and undertake awareness programs to raise awareness and spread information about the ill effects of counterfeit products and how they impact society as a whole. You can also do your part by sending out emails to local retailers in your area.
Use Social Media
Come up with thoughtful campaigns on social media platforms like Facebook, Instagram, and Twitter to promote awareness on authenticity verification and anti-counterfeiting products. These channels have a huge reach and are the best way to reach out to a large number of people. You can also join relevant social media forums and groups and reach out to people there.
Build an Anti-Counterfeit Team
Online and in-store advertising is no substitute for direct person-to-person contact. Choose a representative or build your team to help your clients and local retailers. The team also should understand the world of counterfeits and solutions like verification labels, security codes, and other techniques to ensure the authenticity of a product. Spread the word about how buying a counterfeit product is detrimental to the brand image as well as to society as a whole.
Product Verification is a Must
Integrating easy-to-use technology with products can help customers distinguish the real one from its counterfeit counterpart. Invest in security labels for your products which can be scanned by specific mobile applications. You should also encourage others to do the same.
Authenticity Verification & Anti-Counterfeit Solutions From Uniqolabel
Uniqolabel is a real-time fake and counterfeit identification software company specialising in authenticity verification solutions. Our goal is to completely put an end to the black market for fake goods and products. Our software solutions have protected over 50 million products worldwide.
Counterfeits have caused people to lose their hard-earned money and companies to have their reputation tarnished. We have helped businesses from many industries including agriculture, machinery, appliances, electronics, pharmaceuticals, food and beverage, and automobiles. Start using our authenticity verification and anti-counterfeit products to fix problems with duplicates and fakes right away. Contact us now to learn more.