Brand counterfeiting and solutions for its prevention

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Zero brand attack is an utopia. Brand owner can only take action in reducing the overall impact of brand attack.
Better management and use of effective brand protection solutions can result in brand owners getting better sales and market share; consumer getting the right products at the right price, government getting better revenues and a satisfied and loyal channel. Brand are under attack in various forms however main four are tampering, replication, diversion and recirculation. There is a need of authentication + tracking solutions to be used with proper communication to consumers.

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Brand counterfeiting and solutions for its prevention

  1. 1. www.homai.orgBrand Counterfeiting and solutionsfor its preventionBy:Chander Shekhar JeenaSecretary: Hologram Manufacturers Association of IndiaFICCI Cascade conference, Lucknow, April 11, 2013
  2. 2. www.homai.org Counterfeiting not limited to luxury goods. Counterfeiting has now become global businessand one of the fastest growing business in world. India counterfeit market for the present year isvalued well above $ 5 billion FICCI survey estimated the loss of taxes worthRs 1000 crore p.a. to Indian exchequerBrand Counterfeiting in India
  3. 3. www.homai.orgBrand are under attack in various forms howevermain four are; Tampering Replication (75-80% of brand attack) Stage I is a look alike Stage II is pass off State III is duplication Stage IV is counterfeiting Diversion Recirculation (mainly happens in IMFL, auto andbottled water industry)Forms of Brand Counterfeiting in India
  4. 4. www.homai.orgBrand are under attack in various forms howevermain four are; Tampering Replication (75-80% of brand attack) Stage I is a look alike Stage II is pass off State III is duplication Stage IV is counterfeiting Diversion Recirculation (mainly happens in IMFL, auto andbottled water industry)Forms of Brand Counterfeiting in India
  5. 5. www.homai.orgEffecttoGovt.• Reduction inpublic health crisis/ illness / life• Loss of taxrevenue• Increasedenforcement cost• Funding ofcriminal activity*• Loss ofGovernmentimageEffecttomanufacturer• Lost revenue• Liabilitycrippling lawsuit as incidentofcounterfeitingincreasinghealth andsecurityproblems forpublic• Brand integrity*According to Interpol, the illicit trade money further leads to human trafficking, money laundering and increase in terrorismactivities.Impact of Brand CounterfeitingEffecttoconsumer• Loss of life /illness:According toWHO a fifth ofthe one millionannual deathfrom malariacould beprevented if allmedicines for itwere genuineand takenproperly.
  6. 6. www.homai.orgBrand are under attack in various forms howevermainly three are; Brand owner related issues Lack of proper anti-counterfeiting strategy Non-adoption of anti-counterfeiting technology Difference in cost / short supply of genuineproducts etc. etc. Channel related issues Consumers related issueBrand attack – Why ?
  7. 7. www.homai.orgHow to block brand counterfeiting ? SolutionsSecurity TechnologiesAuthentication solutionsLogicalStructureanalysisCryptographicPhysicalInks / TaggantsPrintedOVDs andHologramSerialisationTrack andTraceIdentification
  8. 8. www.homai.orgWhat is an ideal solution ?Solution should be selected on basicparameters like :- Should provide easy visual authentication- Tamper solution and difficult to copy- Tamper evident solution- Provide three layers security Overt, covertand forensic
  9. 9. www.homai.orgWhy Hologram ?• Simple tool for layman to distinguish an original product from fake• Cannot be effectively scanned, photocopied or photographed• Proven track record in deterring counterfeiters• Provide tamper evident solution• Easy to apply and incorporate• It has been used because industry is doing continuous R&D• Provide multi level security and verification options
  10. 10. www.homai.orgHow hologram help in identification,authentication and arresting counterfeitsLevel of Security features / Authentication:Security level Security HologramfeaturesAssisting / Inspection levelLevel1When the product / brand willbe viewed by consumer / juniorlevel officer’s at various pointsduring inspectionLevel2When the product / brand willbe subject to inspection bysenior officialsLevel3When the product / brand issubject to forensicexamination / in case of fraudOVERTCOVERT /FORENSIC
  11. 11. www.homai.orgConsumer Education
  12. 12. www.homai.orgSumming Up There is a need of authentication + tracking solutions to be used withproper communication to consumers’. Zero brand attack is an utopia. Brand owner can only take action inreducing the overall impact of brand attack. Better management and use of effective brand protection solutionscan result in brand owners getting better sales and market share;consumer getting the right products at the right price, governmentgetting better revenues and a satisfied and loyal channel. Counterfeiting can be curb to a large extent, But for that, first of allbrand owners will have to show a strong will to fight the menace.
  13. 13. www.homai.orgThank YouFor more information, pleasecontactC S JeenaSecretaryHOMAI

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