How do companies combat the counterfeit market? LetsVeriFy

Online trade has boosted the sales of many companies. But, it has also created a challenge for them to combat the supply of fake products. The profit percentage of a brand affects whenever a counterfeiter sells its fake version on e-commerce platforms.  By having more than 2 billion digital buyers worldwide, experts estimate that retail e-commerce sales will reach USD 4.9 trillion in 2021. The FBI, Interpol, World Customs Organization, and International Chamber of Commerce agree that 7-8% of world trade comprises counterfeit goods. 

Companies around the world have to face massive losses due to this concerning issue. These fakes not only eat into brand revenues to fund illicit networks but also cause health and safety risks to potential consumers. Considering the estimates of the pharmaceutical sector, the World Health Organization has stated that fake drugs are draining the global economy by $200b in lost profits annually. If consumed, the consequences can turn deadly. Now, this is the case with every industry. 

To protect their goodwill and save their profits, brands are looking forward to adopting digital solutions in their business. It’s high time that the application of anti-counterfeiting solutions should come as a priority for businesses. 

How do brands suffer from the rise of the counterfeit market? 

With a dramatic increase in selling and buying fake goods with the technological advancements of counterfeiting practices, brands are suffering because of lost sales volume and revenues. The list does not just end here. There is a lot more: 

• Handle fraudulent warranty claims 

The consumer often purchases the fake product thinking that it comes straight from the brand. Without knowing that counterfeiters can hamper the supply chain mechanism in e-commerce, they unknowingly order fake products. It breaks their trust. It is the reason why brands have to pay for fraudulent warranty claims. 

A digital warranty solution is a right solution for this issue. The brands can save themselves by detecting the illicit practices of counterfeiters in between. They won’t have to pay for the fraud they haven’t even committed. 

• Damage to reputation 

It takes constant efforts and product innovation to creatively build a brand and establish a strong presence in the minds of the consumers. One fake product, all the hard work goes into jeopardy. Damage to a brand’s reputation is the real threat of counterfeiting practices. The demand for anti-counterfeiting solutions is understandable. If not implemented timely, many successful and promising brands will be doomed. 

• Low-profit margins due to loss of consumer trust

Every time performance of a brand hits a low whenever consumers receive a fake product. Earlier, only the successful brands were at the target of the counterfeiters. Now, the scenario has completely changed. The products that consumers are demanding on a massive scale are prone to get counterfeited. In the industries like pharmaceuticals, cosmetics, food, and beverages, consumers’ trust and safety come at risk if the product is consumed.  

There is a strict need to track the product at every step from manufacturing to delivery. It will give relevant insights into product mobility. Product serialization is an optimal digital solution to ensure this motive. 

Overcoming the threat of counterfeiting

The scale of the counterfeit market is rising day by day. Fake products are at the top of search results and are easily available to consumers. To demolish these illicit practices, brands need to take some impactful steps. Here are some of the ways through which brands can regain their control in the fight against counterfeiters: 

• Educate customers

Some efforts are required from the consumer’s end as well. Along with businesses applying the optimal digital solutions, consumers also need to be educated. Brands also need to invest in this aspect. It will help them to identify the genuine products from the fake ones. 

When they are aware of the authenticity of the products, it will reduce the burden of the brands to deal with fraud warranty claims, loss of trust, and much more. 

• Adoption of digital solutions 

The modernization in business operations has given ample opportunities to counterfeiters to copy authentic products. Thankfully, the emergence of Industry 4.0 is making the work more manageable. The solution it provides can turn any product into a smart one. It allows brands to track and trace it throughout the supply chain in real-time. Here are some of the most advanced solutions 

• Anti Counterfeiting solutions: It takes a strong stand against counterfeiters. This digital solution not only reduces the extent of counterfeiting but completely eliminates it from the supply chain mechanisms. It comes with an unclonable technology that makes it difficult for counterfeiters to copy the product in any sense. Consumers can verify the products before and after the purchase. 

• Digital warranty solutions: In comparison to traditional warranty management systems, a QR-based digitized customer loyalty solution works better. By scanning the code, consumers can avail themselves the exclusive rewards after their purchase. It will help the brands to connect with the audience in a better way. At the same time, it reduces the threat of counterfeited products. For ensuring end-to-end traceability, brands must look forward to this advanced technology. 

• Product serialization: It goes one step in protecting the brands from counterfeited products. By smartly tagging individual saleable products with unique identifiers (unclonable QR codes), this technology gives power to brands to trace the products at every step of the process and collect vital information when required. For industries like pharmaceuticals, it has proved its worth!  

Don’t let the rising counterfeit market take a toll on business! 

The intentions and actions of counterfeiters are strong. If a brand is performing exceptionally well, it will come under the target list of counterfeiters. The rising market of fake goods is evidence. Implementation of advanced digital solutions should be a brand’s priority to keep its business protected from counterfeiters.

With LetsVeriFy’s Brand protection solutions, brands will get an edge in the industry. Remove the stress of constantly combating the supply of fake products in the market. Let us do the work! Contact us to get clarity of our advanced digital solutions.