High-tech counterfeit products flooding the global markets not only have an overwhelming effect on the brand owners, but also on undermining the economy and the wellbeing of people and nations. The increasing use of fake packaging technology makes it next to impossible to recognize the fake from the original.
The US Chamber of Commerce has estimated that theft of intellectual property costs domestic businesses around $200-250 billion in loss of revenues annually. This has led to a loss of 750,000 jobs in US alone. According to a study, just a 10% drop in counterfeits would add $400 billion to taxable global economy and result in generating 1.5 million jobs.
Fighting counterfeits is necessary to protect the brand from long-term damages, reputation and sales. To protect their intellectual property, brand owners often offer verification tools to ensure their end-users stay protected and only get the original product. Most people however believe they won’t fall victim to counterfeit products. Here are five common myths related to counterfeits:
Myth: Easy to Spot
Scammers are getting more sophisticated and delivering products that appear more convincing. They have become extra careful about packaging with tags, serial numbers and certificates of authenticity being attached to make the counterfeit a complete look-alike. Counterfeits are even marketed along the same channels used for the original product.
Myth: Bad Reviews
Scammers even go out and give 5-star ratings on e-commerce solutions where they sell their counterfeit products. Too many 5-star ratings or unverified ratings could suggest fake reviews. Another give-away is when the ratings are posted along the same timeline. The lesson? Read the reviews too, not just the star ratings.
Myth: Spelling Errors
Counterfeiters are getting increasingly good at crafting packaging that is almost an identical match of the original product. With access to designing technology, it’s easier to match fonts and graphics and create look-alike packaging. Sometimes the fake is so convincing that it can only be identified when compared with an original side-by-side!
Myth: Select Industries
There is literally no industry that has been left untouched when it comes to counterfeiting. It’s not just Louis Vuitton or Gucci that are victims of counterfeiting, but products ranging from apparels, electronics, toys, pharmaceuticals, pesticides, footwear, watches, cell phones, ink cartridges, etc. Some counterfeits can even end up harming the health of humans, animals and the environment.
Myth: China – Center for Counterfeits
While China is considered responsible for all counterfeits, sources show that Middle East countries account for 20-40% of counterfeits, China for 10-40%, Eastern Europe for another 10-40% along with some Asian and South American countries too.
To counter intellectual-property-infringement counterfeiters, brand owners need to look beyond QR codes and holograms; opt for the latest anti-counterfeiting solutions such as crypto signatures on smart product packaging. This is an innovative digital anti-counterfeiting technology that offers fool-proof brand authentication to keep fraudulent products out of the supply chain. Here, Ennoventure helps manufacturers secure their product packaging by adding invisible crypto signatures.