Many businesses may not be aware that their products are being counterfeited. In today’s global marketplace, counterfeiting is more prevalent than ever. According to IACC, the global trade of counterfeit and pirated goods in 2019 was a US$1.77 trillion industry and growing.
Businesses whose products have been counterfeited often lose a piece of their revenue pie, their customers’ loyalty and trust. As such, business owners need to be aware of the risk of counterfeiting so they can take steps for brand protection including lost revenue and legal liability. To help them avoid these risks, we’ve compiled a list of the four most commonly counterfeited products.
Luxury Goods
Luxury goods are popular targets for counterfeiters and are a serious problem for luxury brands. Every year, counterfeiters produce millions of fake luxury goods, ranging from handbags to watches to clothing. These products are often indistinguishable from the real thing, and they are sold at a fraction of the price. Unfortunately, some consumers choose counterfeit products because of low prices which can cause luxury brands a loss in revenue.
Besides losing sales and hurting luxury brands’ bottom line, illegally produced goods can also damage their reputation. Counterfeiters often do not match the traits of the brand’s genuine products, giving unknowing consumers the impression that they are sub-standard in quality.
Brands who fight back against counterfeiters work with law enforcement and use new technologies to track down fake goods. It entails a continuous effort to stay updated with the latest brand protection technology as counterfeiters are always finding new ways to produce fake products.
Electronics
Another booming market for counterfeit products is in electronic products. This includes items such as mobile phones, laptops, and tablets. Fake electronics are available for purchase online and in brick-and-mortar stores around the world. Counterfeiters often target well-known brands, such as Apple and Samsung because of their undeniably high demand.
Counterfeiters go to great lengths to make their products look identical to the real thing. As a result, consumers may unwittingly purchase counterfeit goods that are inferior in quality and may not function properly. In some cases, they may even be dangerous when these fake products do not meet safety standards. It can lead to accidents such as devices heating up and burning, harming its users.
Consumer Packaged Goods
Consumer packaged goods (CPG) are particularly vulnerable to counterfeiting because they are often mass-produced and widely distributed. It includes items such as cosmetics, over-the-counter medications, and food products. It is easy for counterfeiters to produce large quantities of fake CPG and circulate them in the marketplace.
Once counterfeited, brands find it difficult to control distribution and prevent them from being sold through multiple channels including online retailers. Fake CPG also brings with it major health concerns for its consumers as they may not be produced according to health and safety standards and may even contain harmful ingredients. Side effects of fake CPG include skin reactions, illness and even death.
There are a number of ways to effectively protect CPG brands from counterfeiters, including product tracing, serialisation, and tamper-evident packaging. Product tracing involves putting unique identifiers on products, so that they can be tracked through the supply chain. Serialisation is a similar concept, but each individual unit is given its own unique identifier. Tamper-evident packaging makes it obvious if a product has been opened or tampered with, deterring counterfeiters and protecting consumers.
Car Parts
Counterfeit production is a global problem that affects many different industries, including the automotive industry. Counterfeiters are able to produce parts that look very similar to the real thing, but they are made with inferior materials and workmanship. This includes items such as airbags, brakes, and engine parts. Posing safety risks, the use of counterfeit car parts may lead to premature failure, expensive repairs and even accidents.
Many counterfeit car parts are produced in China, where labour costs are low with little regulation. As a result, counterfeiters can sell their products at a fraction of the price of genuine parts. This makes it difficult for legitimate businesses to compete, causing them a loss in earnings whilst putting its consumers at risk.
Brand Protection To Guard Against Counterfeiting
By understanding which products are most commonly counterfeited, you can take steps to protect your business from profit loss and legal liability. A strong brand is an asset which can help to attract new customers and build loyalty among existing ones. It is also a powerful tool for differentiating your products from those of your competitors. However, a brand can also be easily copied or counterfeited by others.
For businesses who want to stay ahead of the game in preventing counterfeiting, Nabcore offers brand protection and authentication solutions. We combine hardware technologies with software, supported by bank-grade security monitoring via our global network access. Our deep understanding of counterfeit productions in the Asian region allows us to provide smart tracking softwares for your business. This is meant to greatly improve manufacturers’ supply chain visibility while simultaneously protecting your profits.
Contact Nabcore today to learn more about brand protection for your business.
