Building a Brand and gaining trust of Consumer takes a long time but destroying it takes just an instance of a Counterfeit Product reaching a Loyal but Unsuspecting Customer. These Counterfeit Products can put lives and health of Customers at risk, specially Infants, Pregnant Women or Elderly.
Most of the existing Anti-Counterfeit Solutions are Outdated. Static visible and invisible security features are used believing customer is trained to identify them. This is a big fallacy. What is required is latest Digital Technologies which have unique code for each product unit and customer can use a hand held device to authenticate QR Code on a dedicated Secure Platform.
Counterfeit is a Serious and Complex Problem. It needs a radically different Problem Solving approach aided by latest Digital Technologies. Reward for Success are Huge - Government may earn more than INR 10,000 Crore in additional taxes and Brand Owners may earn additional INR 20,000 Crore in Gross Profits!!
Counterfeit is a broadly defined term. Product not manufactured by the brand owner or product imported from brand owner’s other affiliate and sold in home market through unauthorized channel is also termed counterfeit. If we delve a little deeper, we find the term implicitly refers to ‘illegitimacy’ or ‘grey areas’. There are ‘grey areas’ from sourcing to consumption that promote this ‘illegitimacy’. The problem is more severe in India because multi-tiered distribution chain and large unorganized distribution channel have need to exist to provide last mile connectivity to feed end customers. Direct company coverage till last mile is uneconomical, so is left with unorganized channel to service.
Brand Owners losing sight of their actual consumers or intermediary channel is a ‘grey area’ which promotes ‘illegitimacy’. This grey area may be plugged through a different approach of targeted communication and Reward Program offering Instant Gratification.
Inefficient Warranty management program has adverse financial and poor customer satisfaction implication. Both factors result in sub optimal company performance building grey area for counterfeiters. Well designed Warranty Management program using appropriate technology platform not only reduces warranty costs but also improves customer satisfaction resulting in proved brand equity and stronger price positioning.
Counterfeiting is world’s second oldest profession and now US Federal Bureau of Investigation has named it as crime of 21st century. Fake products are growing at faster rate than the original products costing hundreds of billions of dollars loss to brand owners and tax authorities.
The problem is so severe that brand owners must think of brand protection is integral to preserving brand equity. The integrity of the supply chain must be ensured right from the first point of sourcing till end consumer. As per study, most of the fake product infiltrate through unmonitored third parties engaged in production, warehousing, supplies and distribution.
Big price arbitrage, higher demand than supply, anonymous distribution channels, and lack of enforcement are the primary reasons fake products exist and are growing at rapid pace.
Barring enforcement, brand owners can effectively manage other factors to certain extent.
Counterfeit Ecosystem – Root Cause | Infiltration Point | Impacted Industries | Consequences
Total Loss to Government (INR 39,239 Crore attributed to 7 industries in 2014)
We offers you the best technological solutions to digital tag your products/services which can be used for authentication, gratification, warranty management, product tracking services and automated inventory management using RF ID.
Himalaya Pride, Techzone 4, Uttar Pradesh - 201009
Atul Bhargava
info@cpigs.com
M: +91 99102 17882
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