Consumer Electronics is a global industry. Mobile Phones, Smart Watches, Accessories, Laptops, Tablets, Bluetooth Speaker and Earphones are some of the most counterfeited consumer electronics products. Products are designed and engineered for global markets. This is the prime reason behind major consumer electronics products are produced at fewer places to leverage cost advantage from large scale production. Products are standardized for exports all over the world. Customer can choose his or her spoken language and also the play store which hosts apps specially designed in his native language.
Price arbitrage encourages counterfeits
Apple iPhones are designed and engineered in United States by but produced by Foxconn in Mainland China. They are cheaper in US compared to China, where the product is manufactured. This creates price arbitrage opportunity and encourages illicit cross border trade. Government and legitimate sales channels incur huge financial losses because of this illegal sales.
A FICCI CASCADE report suggests the mobile phone industry has suffered a total loss of INR 19,066 crore due to the illicit market in 2013-14.
CPIGS Anti Counterfeit Technology & Solution
IMEI numbers in case of mobile phones can only identify the device but do not authenticate their genuineness or sales through authorized channels. CPIGS believes QR Code on each electronics product can help authenticate their legitimacy.