Get insights into the latest traceability and brand protection technologies on Electronic industry Through this webinar presentation you’ll learn about: - Current situation and trends in Consumer Electronics - Customized anti-counterfeiting solutions...

1. Use Anti-Counterfeit Tech as Fatal Weapon
to Combat Fakes in Electronics Industry
The Latest Market Analysis of the Electronics Market and the
Solution of Brand Protection
Presented by Alfons Futterer
Tel.: +852 2523 9959 / Mobile: +852 6056 9938

2. Agenda
1 Consumer Electronics Industry Overview
2 Challenges and Opportunities in Consumer Electronic
3 Brand Protection Implementation
4 Successful Cases

3. 1 Consumer Electronic Industry Overview

4. The electronics industry, especially meaning
consumer electronics (CE), now become a
global industry worth billions of dollars.
The electronics industry encompasses a wide
range of different manufacturing processes and
products. The most visible products of the
electronics industry are consumer electronics
such as television sets, computers and cameras.
These visible products represent a tip of iceberg
situation as a large part of the electronics
products.
Highly Competitive, Dynamic, Changing Electronics
Industry

5. Source from :https://www.cbp.gov/sites/default/files/assets/documents/2016-Apr/FY%202015%20IPR%20Stats%20Presentation.pdf
According to U.S. Customs and Border Protection department statistics, consumer electronics has been ranked
the second most frequently seized fake products since 2014.
The Counterfeit in US Electronics Market
Counterfeit Alarm in the Consumer Electronics Industry

6. However, there comes an alarming issue
that some lawbreakers target at these
products due to the tremendous profit.
Asia is the most predominant regional
source of counterfeit CE products.
Additionally, Russia and India are
suspected sources, followed by Tai Wan,
Philippines and Malaysia.
Leading Counterfeit Electronic Countries

7. Counterfeit Electronic Cases
U.S. Department of Commerce (2015)
• More than 8% of total electronic
merchandize trade is counterfeit
• Estimated revenue loss USD 600 billion
Grey Market and Counterfeit Abatement, AGMA
(2014)
• 8-10% of all technology goods sold worldwide are
from grey market.
• Estimated revenue lost USD 100 billion.
U.S. Patent and Trademark Office
• USD 250 billion damage to the US economy due
to counterfeit and piracy.
• Cost to the industry in terms of product failures,
returns and litigation, cannot be assessed, but are
expected to be tremendous.
Semiconductor Industry Association (SIA)
• USD 7.5 billion lost revenue to semiconductor
manufacturer due to counterfeiting
• About 11,000 jobs lost.
US Customs and Border Protection and China’s
General Administration of Customs (2015)
• 245 thousand counterfeit consumer electronic
devices seized before they got exported out of
China.
China Customs Office in South China (2015)
• Over 6000 counterfeit radios seized which
infringed on Sony trademarks.
• Within less than 12 weeks the customs office
seized in total 11 consecutive batches of
infringement and counterfeit consumer
electronics products, including mobile phones,
earphones, game consoles.

8. 2 Challenges and Opportunities in Consumer
Electronics

9. How Electronics Products are Counterfeited
• Relabeling
• Sanded and Remarked
• Blacktopped and Remarked
• Scrap Salvaging
• Illegal Manufacturing
• Etc.
Relabeling
Sanded & Remarked
Blacktopped & Remarked
Scrap Salvaging

10. Factors Contribute the Entry of Counterfeit
Electronics into the Supply Chain:
• Instant Pudding Mindset
Some OEMs pursue high productivity in a
short time, this results in shorter leading time
for components manufacturers. In this
situation, counterfeit electronics components
with short leading time appear in the market.
• No Inspection
In order to produce high quality components
with lower cost of time and money, some
OCMs omit the process of products
inspection. Consequently, no inspection
leaves supply chains vulnerable to counterfeit
entry.
• Weak Control on Offshore Production
Production outsourcing sacrifice control over
product manufacturing and flow
• Complicated Distributor Supply Chain
Few have supplier relationships or product
inspection programs, leaving many
opportunities for counterfeit product entry.

11. Counterfeiting
Problem
 Profit erosion
 Negative customer experience
 Product warranty & safety issues
Cause
 Violate the legitimate rights of sales
to the retailers
 Distributor channel conflict
 Supply & demand imbalance
 Disruptive pricing pressure
 Revenue cannibalization
Cause
 Knock-offs
 “Retreading” products
 Fake certificate
 Unauthorized, unofficial
manufacturer trading
 Absence of transparency
in supply chain
3 Major Challenges in Consumer
Electronic (CE) Industry

12. Irregularities in
E-commerce
Cause  Return fraud
 IP infringement
 Threaten the reputation
 Damage to the brand value
 Lack of an effective
monitoring in distribution
channels
3 Major Challenges in Consumer
Electronic (CE) Industry

13. Victims of Counterfeit Electronics
• Cause life-threatening accidents
(power bank explosion, electricity
leakage, fire broke )
• Personal information leakage
• Loss job opportunities
ConsumersCE Brand Owners
• Loss revenue from product sales
• Damage brand image and value
• Unwanted lawsuits and compensation from
customers (accidents, brand piracy lawsuit,)

14. More Fast & Accurate Verification Methods
keep the counterfeits away
TrackMatriX ® GEO TrackMatriX ® Lock
 Track & trace
 Supply chain monitoring
 Tracking and reporting
system
 Covert & forensic tracer
 Extremely difficult to copy
 Custom-made detectors
Taggant-Detecor combo
Upgrade Verification Methods
Increase Supply Chain
Traceability
 Better Brand Management
Opportunities in Consumer Electronic Industry
Counterfeiting Problems Grey Market Irregularities in E-commerce
 Secret-function-equipped
Code
 data encryption
 Absolute protection

15. Brand Protection Strategy
Counterfeiting
Problem
o Utilize hi-tech marking
material on the CE
o Improve the security
level of CE labels &
certificates
Strategy 1: Strategy 2: Strategy 3:
o Product track & trace system
o Superior inventory
management
o Product safety
o Data transparency
Irregularities in
E-commerce
o Strengthens CE
authentication approach
o Establish customer
engagement system
 Increase supply chain traceability
for better product controlling
 Interactive with your customers
for better brand management
 Upgrade your verification
methods

16. 3 Brand Protection Implementation

17. For the Rest slides, please visit the following website to
download the entire presentation:
https://www.nanomatrixsecure.com/blog/successful-webinar-for-electronic-industry
Please do not hesitate to contact us for any further queries:
NanoMatriX International Limited
Tel: +852 523 9959
Mobile: + 852 6056 9938
Email: alfonsf@nanomatrixsecure.com
Website: www.nanomatrixsecure.com