Understanding the Key Factors in the Impact of Counterfeits on Business
Fake products, Real deaths.
Counterfeit products are resulting in deaths across the globe, in particular among the most vulnerable populations in Africa and Asia.
Impossible to ignore
The counterfeit menace is killing humans at a rate that is equal or higher to humanities most urgent global challenges.
Already big, yet growing fast
Counterfeit products has always been a big problem across the world, but it continues to accelerate with the availability of technology, and the challenges thrown up by the COVID pandemic.
“Not my problem”, no longer
This is no longer a problem that’s confined to some parts of the world. Due to the global logistics supply chain, there are fake products that end up in some of the most advanced and prosperous economies of the world.
Counterfeiting is sophisticated
Counterfeiters have gone beyond operating in a tin-shed in the shadows. Their operations have become technically advanced, and their fake products are sometimes indistinguishable from the original.
Side effects include death
The negative impact of counterfeit products can come in unexpected ways. Beyond food products or pharmaceuticals – fake electronics, poisonous paint on toys, unreliable automotive parts can result in catastrophic consequences in our daily life.
Big incentives for big crime
Counterfeiters make so much money creating fake products, that they can pay their way out of problems. From bribes to acquiring technology to cover their tracks, Counterfeiters have the incentive, and the ability.
Easy to make, difficult to catch
Due to the increasingly complex nature of counterfeiting operations, it requires specialised skills and machinery to catch fake products. This inhibits the system from moving faster in tracing and destroying fakes.
Genuine shops, fake products
People can no longer protect themselves by simply buying from seemingly branded shops. Fake products have infiltrated the most well meaning of brand showrooms and Ecommerce websites. The person selling the fake to you may not even know it.
Seeing is not knowing
Anti-counterfeit measures like holograms, barcodes or other methods are visible to consumers, but they don’t have the expertise or time to use that to ascertain whether a product is genuine. Internet enabled pages can also be faked.
Big profits, low penalties
Legal penalties and enforcement frameworks have been playing a catch up game considering the value of the profits generated through counterfeit crimes. The consumer cannot wait for the authorities to solve the problem.