Thank you Dinesh,for that lovely Introduction and Overview of L’OrealAnd now to discuss the topic in some detail………Product counterfeiting is,typically an organized group activity,Because… the manufacturing of goods takes manpower and time, and the goal is invariably profit. Many jurisdictions take the offence quite seriously, as a result…most product counterfeiting would be considered as organized crime under the Convention.……Products in high demand can be manufactured,based on the same or similar looking designs, often packaged and branded in ways ,to make them indistinguishable from the original.Counterfeiting accounts for between 5-7% of world trade….In India this accounts for almost 10% of our trade…..One can only imagine,the losses to the exchequer, and hence,the importance of what we are here today for…
To give you a brief overview of,the volume of seizures over the past 3 years,across the 2 main avenues i.e. Customs and Market Seizures.….While market seizures have dropped by 40% over the last 3 years,, Customs seizures have grown approximately 7 times.I think we should applaud your efforts in making this a reality
This shows a geographical representation of the,seizures in units that we have had over the past 3 years,….Notable among this is,the largest seizures have taken place at Ludhiana in 2011,and none at Mumbai, Kolkata and Kochi over the last 3 years.
Let’s take a quick look,at the most counterfeited,from our Garnier stable of products…Of a total of more than 1000 SKU’s,that we have across all brands at L'Oréal, these SKU’s are, the most prone due to their, high turnover and ad spends or what we call “Share Of Voice”As per our past experience in counterfeit seizures, these land in India mainly from China, where ….we believe ..they are manufactured as well.
The products that we have seen so far, have been products, that are found in our Indian Catalogue……The Products that we are now seeing, are non-catalogued products, or products which L'Oréal have never ever made Worldwide…In short, these are purely FAKE products, carrying the Garnier trademarks…
Few more…..We have kept some samples here ….. For your easy reference……
These are the same products, but carrying the L'Oréal Paris trademarks…They have been rather adventurous, in launches atrocious categories, that we would never have even thought of….
Let us now take a look at , the commonly found visible clues, that set, these counterfeit products, apart from the original ones………..These relevant products, have been kept on your respective tables,…As we go through the slides,you can check the same, with the products kept in front of you… ……..Imported Products CANNOT have a label of Indian Manufacturing Origin……The main orifice from where the product is dispensed is bigger than the original product……Counterfeit products, will be heavier than the original, since they fill the product to the brim …..i.e. full capacity of the containerThere is a distinct difference, in the inner fabrication markings on the cap.
These distinguishing marks are specific to Garnier Men Powerlight….
These distinguishing marks are specific to Garnier Light Fairness Face Wash with Lemon Essence….
These distinguishing marks are specific to Garnier Pure and Light Face Washes….
These distinguishing marks are specific to Garnier Fructis Style….
Now that we have seen, how to distinguish, these counterfeit products, lets take a look at the brands, which have been registered with Customs so far….…
To summarise,Weare the sole licensee for India, to import and market,the products owned by L’Oreal Group….…..We mainly import our products through ,Mumbai customs,NhavaSheva,Kandla…..When products are imported with pre-labeling,Of “Mfd.by” L’Oreal India….The products are definitely “not genuine “…..
I think that, this is just the beginning, and the achievements, that you have seen so far, is just, the tip of the iceberg, as far counterfeit seizures are concerned……..With a team like yours,we forecast, bad times ahead for counterfeiters…
Thank you Very much, for your kind attention.
INDIAN BEAUTY MARKET_______________________ AN INTRODUCTION
STILL SMALL BUT YET THE FASTEST GROWING IN ASIA ((in billion €) South Korea 3.1 Japan 19 +7.8% Greater China 11.2 +1.3% India 1.7 +8.1%+16.2% ASEAN** +8.5% 5.2 * excluding soaps , razors, blades and toothpaste L’Oréal Estimates– On a 2010 higher revised basis. Translated into euros at foreign exchange rates of 12.31.2010 **ASEAN : including here only Thailand, Indonesia, Malaysia, Philippines, Vietnam, Singapore.
YEARLY COSMETICS CONSUMPTION IN THE ASIAN MARKETS€148.1 (in €, per capita) France : 104.2 € United States : 88.7 € €88.6 €62.9 €24.5 €20.1 €10.9 €6.7 €5.4 €4.3 €1.4Japan Singapore Korea Malaysia Thailand Philippines China Indonesia Vietnam India Excluding soaps, toothpastes and razors L’Oréal estimates – 2010 Net manufacturing prices Exchange rates at December 31st, 2010
SIZE AND EVOLUTION OF THE INDIAN BEAUTY MARKET 1.7 Billion €100000 90000 80000 70000 60000 50000 16.2% 40000 18% 18.6% 17% 30000 5.7 % 20000 10000 0 2005 2006 2007 2008 T 2009 2010INR Health & Beauty Source: Nielsen Total India 2010
THERE ARE TWO MAJOR FORMATS AMONGST RETAILERS . . . Retail Landscape Traditional Trade Modern Trade• Traditional Mom & Pop stores • Self Service Stores• 7.7 MM stores in India • Hyper markets, supermarkets, department• Urban distribution ~ 2 MM stores stores, drug stores, cash & carries• 85% of L’Oreal India business • 15% of L’Oréal India business
DESPITE MODERN TRADE EXPLOSION, TRADITIONAL TRADE WILL CONTINUE TO DOMINATE Share of each channel (Percent)** 2008 2012Shampoo +11% Grocers/GenPer cent 81 78 Stores /chemist 2,202 Modern Trade* 6 10 1,425 Cosmetic counter 5 5Hair color Grocers/GenPer cent 76 66 Stores/chemist 12% 923 Modern Trade 3 8 588 Cosmetic counter 14 19Skin care 16% Grocers/GenPer cent 74 66 Stores/Chemist 3,653 2,047 Modern Trade 6 13 Cosmetic counter 15 16 2008 2012Makeup Grocers/Gen 27 22Per cent Stores/Chemist 17% 503 943 Modern Trade 4 8 Source: AC Nielsen data Cosmetic counter 69 70 2008 2012
STRENGTHS OF TRADITIONAL TRADE•Proximity•Price (MRP)•Choice•Credit•Home delivery•Personal relationshipA “pull system” based on consumer demand generated by mass media
KEY FIGURES No.1 cosmetics group worldwide 27 international brands(1) 20.3 billion euros in sales 130 countries 68,900 employees 613 patents registered in 2011(1) International brands with annual sales of more than €50 million
INDENTIFYING MARKS Mfd. By: LOréal India Pvt. Ltd., Chakan, Pune – 410 501 M. Lic. No. : MPD/C-44 B. No: Pkd. On: see crimp Cap orifice in counterfeit is bigger than original Content filled volume is more in counterfeit (original tube will have fill : empty ratio in the content) Difference in Cap Manufacturer’s mark – Counterfeit: N, Original: SC or AT Counterfeit Original Counterfeit Original
UNIQUE INDENTIFYING MARKSGARNIER MEN POWER LIGHT FACE WASH-100g Counterfeit Original Number of inner ribs in the counterfeit cap lesser than the original Seal (silver foil) present on orifice of the counterfeit cap Spacing in the batch code on the crimp is different Finishing on the Label Counterfeit: Glossy Original: Matte (black background) & Glossy mix
GARNIER LIGHT PURE LEMON ESSENCE FACE WASH– 50g Counterfeit Original Counterfeit Original The product content in the Cap is transparent in counterfeit tube is liquid counterfeit whereas and thinner than original original is milky white
GARNIER PURE EXFOLIATING FACE GARNIER LIGHT PUREWASH – 100g LEMON ESSENCE FACE Counterfeit Original WASH– 100g Cap gate-mark is visibly Upper side of the cap is less bigger in counterfeit. oval in shape in original Counterfeit Counterfeit
FRUCTIS STYLE - HARD GEL-125g counterfeit Original Original Cap inner has long nozzle unlike in counterfeit Label in counterfeit is in plain printing whereas original has screen printing Tube size in counterfeit is smaller [135mm] than Original [140mm] Cap size in counterfeit is smaller than original Colour graphics in counterfeit including logo of “Fructis Style” is lighter than original Counterfeit Original
GARNIER ELVIVE FUEL FOR LIFE TRESORGARNIER COLOUR LOréal ATTITUDE GIORGIO ARMANINATURALSNUTRITIONIST VIVE HYONOSE AMOR AMORAMBER SOLAIRE ELSEVE DRAKKAR NOIR MAGNIFIQUEFRUCTIS MAYBELLINE DIESEL ARMANI MANIADOUBLE EXTENSION VICHY RALPH LAUREN EMPORIO ARMANI ILGLAM SHINE KERASTASE POEME EMPORIO ARMANI ELLE POLOVOLUME SHOCKING ROMANCE LANCOME
SUMMARY LOréal India is the sole licensee for import & trade of the products owned by LOréal Group; Products are imported by LOréal India mainly through: • Mumbai Customs • Nhava Sheva, Mumbai • Kandla Port Products with pre-labeling: “Mfd. by v/s Imported by”
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