Lubricants are easier to counterfeit because original used containers and packaging are easily available. Basic raw material of base oils and additives are readily available through organized and unorganized channels. Since lubricants as finished product is difficult to distinguish even after using it for some time. The actual impact of counterfeit lubricants is felt over prolonged period. Vehicle shows symptoms of increasing fuel consumption, higher wear & tear, and frequent breakdowns etc.
As per Asian Lubricants Industry Association, 10% of Lubricants sold globally are counterfeit. This causes Industry loss of US$12.5 Billion annually. Counterfeit Lubricants in India is also a massive INR 5,500 Crore market.
Why Counterfeiting is such big industry? Mathematics behind Counterfeiting. – CPIGS
The counterfeit products infiltrate at warehousing, transportation, and dealer, wholesale level.
CPIGS Anti Counterfeit Technology & Solution
Lubricants Industry have been using their anti counterfeit methods. Example, some companies use specific color dye to identify their product by doing finger print test. They believe some of the dye even survives oxidation at temperature. Unfortunately, this is not a practical solution.
At CPIGS, we believe that applicable technology that allows customers to verify the authenticity of a product would be appreciated by customers and brands alike. A brand may put a unique identifier on each product it is producing. This enables a buyers to independently verify the product identity over a web portal or mobile app in real time to tell the real ones from fakes. It could be QR encoded with information that a digital device can read. Certain industries like Lubricants may need additional layers of security.
Combination of linked QR Codes on each Product Unit, encoded numbers inside Cap, QR Code on Outer Pack and Carton to offer strong deterrence to counterfeit. Track & Trace capability of QR Codes ensure product integrity through all touch points.