Stop Brand Counterfeiting from Hurting Your Bottom-Line
- Counterfeiting is a $1.2 trillion business
- Channel violations can cost manufacturers close to $350 million per year
- 10% of all products are counterfeits
Counterfeiting is a grave issue as these statistics exhibit, and it is no wonder then that it has received the rather infamous label of being the crime of the 21st century. Counterfeiting infringes upon the actual brand or intellectual property of the original manufacturer. China continues to remain the single largest producer of counterfeit goods, while not so far behind are countries like Russia, Philippines, India and several other middle-eastern countries.
Brand Damage Caused by Counterfeiting
Brand equity suffers a serious hit because of widespread counterfeiting activities. In the long run, counterfeiting can effectively erode away your hard earned brand image while also eating away at your profits and revenue. The overall impact can be seen in the lowering of consumer trust and loyalty for your product and brand. Brand counterfeiting can actually destroy your business. Another social backlash of the business of counterfeiting is that it effectively diminishes employment opportunities. Additionally these counterfeits can also affect the health of the people who buy them, especially FMCG and pharmaceutical products. And finally, perhaps the most alarming consequence of this activity is that consumers don’t seem to mind buying certain counterfeits and are quite aware that they are opting to buy fakes. Research shows that in these instances consumers prefer the goods simply because they are available locally.
Tackling Counterfeiting
According to an IAAC survey, Fortune 500 companies in the US spend an average of $2 to $4million per year to combat the problem of counterfeiting. So despite anti-counterfeiting measures adopted by enterprises, why does the problem persist? The problem lies primarily with counterfeits being sold online. E-commerce remains the primary driver of the escalating business of counterfeiting and gray market activity. To effectively tackle online counterfeiting, a brand protection solution is required that can provide an easy view into the counterfeiting activities that go on with your specific product or brand. Unauthorized distribution channels that are using your brand to sell products should also be monitored. The need of the hour is for a solution that can provide unmatched visibility into sites, like B2B and auction sites, and leave no stone unturned to protect your product and the brand. It needs to ensure:
- Complete protection of your brand’s reputation
- Assistance in regaining lost royalties
- Regained distributor channel loyalty
- Most importantly, lost revenue is regained
Protecting your brand is not easy, but it is not impossible. Investing in the right brand protection solutioncan help regain lost brand reputation and also ensure that your bottom line remains untouched.
Processing your request, Please wait....
