A Proactive Approach to Brand Protection
In today’s marketplace, counterfeiting affects all consumer products and creates enormous liability, as well as health and safety issues for manufacturers and retailers. The estimated value of counterfeit product in the global consumer marketplace ranges from $500 - $600 billion USD, at the low-end, to $1 trillion USD, at the high-end, making it probably the most profitable illegal activity worldwide. While enforcement efforts primarily focus on the end-user and final delivery, measures taken at the manufacturing level can significantly help deter counterfeiting. Conversely, a lack of control measures can encourage and support the efforts of counterfeiters.
Counterfeiting takes place through various means and forms, including theft and unauthorized manufacturing. Specific methods can vary by product. For example, in the apparel industry, trim is known as the “currency of counterfeiting” that allows counterfeiters to add authentic detail to unauthorized product and consequently requires vigilant monitoring of inventories and usage.
Anti-counterfeiting solutions need to be customized to your particular product type. However, a number of best practices apply to all product types and should be included in your anti-counterfeiting program. These include:
- Working with trusted suppliers and partners
- Verifying raw material and components for legitimacy
- Monitoring and inspecting shipments of goods to confirm quantity and authenticity
- Controlling production waste and the disposal of damaged and unusable goods
- Establishing procedures for exit and wind-down operations
What are the key benefits?
- Deterring counterfeiting activities throughout your supply chain
- Maintaining brand image and reputation through authentic products in the marketplace
- Helping to reduce the risk of financial loss, liability and safety issues associated with counterfeit products
With a comprehensive range of inspection, factory audit and social audit services throughout the supply chain, we can help you customize an anti-counterfeiting program to meet your specific needs.
Our services can help you:
- Audit manufacturing facilities to confirm anti-counterfeiting processes and procedures are in place, including social audits to confirm employee awareness and established procedures for suspected counterfeiting activities.
- Develop and assess the physical security of manufacturing facilities, including the review of security measures for scrap yards and the disposal of unused goods, to help prevent theft and unauthorized access.
- Inspect shipment of goods to verify product quantity and authenticity to identify any missing or tampering of product.
- Establish audit procedures for wind-down operations to facilitate the appropriate disposition of product materials, trims and components, when a retailer or brand exits a factory.
What types of products are counterfeited? All types of consumer products are affected by counterfeiting including apparel, accessories, electronics, electrical products, food, housewares, hardwares, pharmaceuticals, sporting goods, toys and more.
What can be done at the retail level to deter counterfeiting? Retailers can help deter counterfeiting by auditing shipments from all sources for authenticity, in particular those not coming directly from a manufacturer, and by working with distribution partners whose legitimacy has been validated.