Counterfeit products are widely believed to be an issue in specific niche industries such as luxury handbags and apparel, music and movies, sport shoes, jewelry, and watches. But in fact, counterfeit goods aren’t simply a blip on the radar; they’re a multibillion-dollar global industry.
According to a report released in 2017 by the International Chamber of Commerce’s Business Action to Stop Counterfeiting and Piracy (BASCAP) and the International Trademark Association (INTA), the global economic value of counterfeit and pirated goods will reach close to US$3 trillion by 2022. Total job losses due to counterfeiting and piracy are predicted to increase from 2 to 2.6 million jobs lost in 2013 to 4.2 to 5.4 million jobs lost in 2022.
The development of e-commerce during COVID has also created a picture-perfect market channel for counterfeit goods. Though it is easy to take down a website selling these products at the major online shops, these counterfeiters can also easily launch another the next day. Evidence demonstrates that as e-commerce sales have increased from 10% of retail sales to more than 30% under COVID, counterfeiters have had an ideal opportunity to take advantage of consumers buying things from their computers.
Consumer goods, tobacco, aerospace components, electronics, pharmaceuticals, automotive parts, industrial components, apparel, food, and just about any other manufacturing business are among the most heavily targeted industries. Ignoring your organization’s counterfeiting problem is exactly what counterfeiters want you to do. With the prevalence of counterfeit goods reaching record levels, industry must make a stronger response.
Industry Can Combat Counterfeiting in the Following Ways
- Educate your customers: Customers must be educated about the risks of purchasing from illegal sources, as well as crucial markers that can help them identify between fake and legitimate products. Then, by reporting suspect goods and dealers to them, shops may actively motivate customers to join the fight.
- Track fake product origins: Firms should use trackers and monitoring tools using artificial intelligence (AI) to find out where counterfeit versions of their items are being sold online in order to report them to the right authority. In addition, companies must monitor sources of promotion outside of typical distribution channels. For example, false advertising, black hat SEO tactics, and spam are all used by counterfeiters, therefore companies must be on the alert and track their origins.
- Utilize blockchain technology solutions: While blockchain is best known as the underpinning technology behind Bitcoin, it is also very useful when it comes to detecting fraudulent items. Blockchain can ensure that both enterprises and customers get the quality they pay for by creating a more transparent supply chain.
IDLogiq Blockchain Technology Solutions
IDLogiq will ensure that your business goes above and beyond DSCSA compliance, providing the highest level of security for your brand, product, supply chain stakeholders, and customers. If a counterfeit product entered your supply chain, authorized resellers would have a difficult time determining if the product is genuine or not. Counterfeit items might look just like the real thing due to modern counterfeit technologies. This means that fake items can be sold to your customers without anybody knowing, compromising their safety and the brand’s reputation if there are any problems with the false product.
With the help of IDLogiq’s patented NFC security technology, counterfeit goods can be caught before they make their way to the consumer. Products can be tracked at every step in the supply chain by integrating our technology at the manufacturing level. From then on, at any point in the supply chain, the product can be scanned and authenticated to see if it’s genuine or counterfeit, and if it’s in the right channel. This means we can detect counterfeit goods before they reach the end user, which is highly effective in combating counterfeiters.
- Luna, D. M. (2019, May 6). Anonymous Companies Help Finance Illicit Commerce and Harm American Businesses And Citizens | The FACT Coalition. The FACT Coalition. https://thefactcoalition.org/report/anonymous-companies-help-finance-illicit-commerce-and-harm-american-businesses-and-citizens/.