Based on the Counterfeiting Intelligence Bureau from the Worldwide Chamber of Commerce®, counterfeiting is among the fastest growing economic crimes of contemporary time. When a cottage industry, counterfeiting has turned into a sophisticated network of organized crime, comprising five to seven percent of world trade, worth an believed $600 billion annually.
Until relatively lately, the black and gray market economies didn’t pose a substantial threat to brand proprietors. The underground community operates unlawfully outdoors government-sanctioned channels using the exchanging of products or services, while goods within the gray market are distributed legally, but through channels which are unauthorized through the original manufacturer-generally known as diversion. Customers who’d frequently shop in one of these simple two markets now be capable of see the Internet for the similar products, posing a level much deeper threat to some brand’s status and integrity, impacting the earth’s greatest brands and smaller sized brands alike.
Using the development of global brands and also the Internet, brand proprietors face threats from counterfeiters and brand pirates who are trying to generate large profits by unlawfully producing credible look-a-like products to market at deeply great deals. Brand proprietors are having to take particular notice in their supply chains and police the location and authenticity of the products whatsoever occasions.
Previously, such luxury and-finish goods as designer accessories and clothes, spirits and perfumes, were that appears to be counterfeited. However, occasions have altered with technological advancements in digital imaging, cameras, scanners, artwork software, color and inkjet printers, aiding counterfeiters and brand pirates to develop a make money from any branded item-pharmaceuticals, electronics, software, cigarettes, hardware and food products like baby formula. Even automobile and aircraft parts are now being counterfeited. It’s been reported that almost all counterfeited merchandise is originating from China, North Korea, Taiwan, India, Russia and areas of Africa.
Pharmaceutical counterfeiting has brought to extreme outcomes, including consumer fatalities, which illustrates the significance of brand security. The Fda saw an 800 percent rise in the amount of new pharmaceutical counterfeit cases between 2000 and 2006. Based on the Lancet*, the earth’s leading general medical journal, counterfeit pharmaceuticals will generate $75 billion in revenues this year, a 92-percent increase from 2005.
Going for a Defensive Stand
Diversion, pirating and counterfeiting not just possess a negative effect on the revenues and profitability of legitimate companies, they also change up the credibility and status of the brand. Counter measures against these practices should be taken through the logistics-in the brand owner, supplier and distributor towards the wholesaler / retailer, store and eventually, the customer.
It’s crucial that brand proprietors stay attuned to brand security these days and understand the variety of available anti-counterfeiting solutions. Ignoring the significance of brand security isn’t an option, because when the damage is performed, the price to correct it may be far more than what it really might have cost to avoid it to begin with.