The rise in online shopping due to the Covid-19 pandemic has led to increased sales of counterfeit cosmetics worldwide. Aside from the numerous health risks caused by using such products, the circulation of fake cosmetics negatively affects companies and manufacturers by causing revenue loss, damage to brand reputation, a loss of consumer trust and even legal repercussions.
As of 2021, the beauty industry is valued at USD 511 Billion. This number is set to exponentially increase in the coming years. Brands can no longer ignore the detrimental effects caused by knockoff cosmetic products. Incorporating smart brand protection strategies is one solution companies can tap on to prove the authenticity of their products. These include the use of anti-counterfeit packaging, product tracking software, and interlocking digital and physical technologies. This blog will detail the dangers of counterfeit beauty goods, and the steps companies can take to protect their customers, brand and revenue from harm.
Health Risks of Counterfeit Cosmetic Products
If a deal is too good to be true, it most likely is. While that coveted eyeshadow palette or skincare product you bought online might come in packaging that looks authentic, appearances often conceal a more sinister truth. At best, counterfeit cosmetics can contain low-quality and dubious materials. At worst, carcinogenic ingredients such as arsenic, mercury, harmful bacteria and even faeces have been found in fake products. Makeup, skincare, beauty devices, fragrances and even personal care products like toothpaste have all been the subject of counterfeiting.
Smart Brand Protection Solutions
The adverse effects of counterfeit cosmetics are felt most strongly among businesses and end-users. Still, it is also crucial for manufacturers and distributors to differentiate between authentic products and fakes. Employing a combination of digital and physical anti-counterfeiting technology casts a wide net in ensuring that commodities are authenticated and distributions are tracked along the supply chain.
Product Authentication Technologies
Companies should consider incorporating anti-counterfeit codes and security labels into their product packaging. Such technologies allow customers an easy way to authenticate products that pass through their hands. As part of our product authentication solutions, Nabcore provides enhanced AR Codes that are bank-grade, anti-copy and clone-proof.
Besides increased security, our AR codes have multiple benefits over regular QR codes. QR codes can be easily copied or simulated, and scanning them will likely direct users to a secondary website before being verified. Nabcore’s AR codes are visually different from regular QR codes and can include patented brand-specific watermarks. Once printed onto cosmetic products or their packaging, consumers can then verify them using their smart device in dedicated apps without the need to open a new browser. A unique ID can also be incorporated into each print to work with our Track & Trace methods for a two-prong approach towards combating counterfeits.
Smart Tracking Solutions
Our Track & Trace solutions empower businesses and manufacturers with greater insight into the location of their products along the supply chain. Some of the technologies we provide include heatmaps and journey maps of products, RFID and NFC devices, and Internet of Things (IoT) devices incorporating different sensors. Products that veer off the supply chain or end up in suspicious areas can be tracked and narrowed down before there fall into the hands of unsuspecting consumers. Besides informing on the integrity of a supply chain, brands can also glean valuable insights into industry trends from this information or pass it onto legal authorities for further investigation.
Protect Your Brand with Nabcore’s Solutions
The use of product identification technologies and track and trace methods are not limited to cosmetics. Various industries and sectors can also incorporate these smart brand protection solutions to their benefit. For example, the pharmaceutical industry, the wine and spirits industry, the jewellery industry, the electronics industry and more. The saying that prevention is better than cure also applies to the fight against counterfeit products. It is never too early to start protecting your customers, your brand and your revenue.
Get in touch with Nabcore today to find out more about our smart brand protection solutions.