Category: Commercial Brand Protection

Your Complete Brand Protection Guide

     |     
Counterfeiting, smuggling, diversion, and infringement — collectively known as illicit trade, — continues to be a growing global problem for businesses and consumers. With the increasing volume of counterfeit goods trafficked across the globe and seeping into multiple supply chains, a well-strategized brand protection program is more essential than ever to shield what matters most to businesses – customers, brand identity, reputation, and revenue.

Protect Your Brand Against Counterfeiting and Product Diversion Video

     |     

Secure digital product marking, security printing, and online brand protection all help protect your brand against counterfeiting and product diversion. Watch the video to learn more about these brand protection solutions:

Want to learn more about what brand protection solutions are right for you? Schedule a consultation with our team today.









By clicking on the button below, I accept the Terms of Use and Privacy Policy as provided through the Authentix® website (www.authentix.com) including the use of individual personal data subject to the EU Data Privacy Act 2018 and General Data Protection Regulation (EU/GDPR)

Navigating Brand Protection Strategies For Your Business

     |     

By the Authentix Brand Protection team

Back in the 1700’s Ben Franklin was an early innovator of printing techniques that made American paper currency harder to counterfeit. Some of his security features included watermarks, imprints of leaves, and other difficult-to-reproduce features that helped citizens distinguish real bills from illegal copies.

Anti-Counterfeit Security Features from 1700s

Since then, security feature graphics have of course evolved, but many of these early anti-counterfeit security features have stood the test of time. There are dozens of secure printing, digital authentication, and online protection technologies that can help your brand keep products secure and prevent counterfeiting. Here’s a breakdown of the top security and authentication technologies that might be right for your brand protection needs:

Physical Security Features

Having a multi-layered physical security authentication solution is important to protect your products. If a counterfeiter figures out how to print one security feature like UV, you still have more layered features to verify if the product is indeed yours. There are a wide range of physical security options available, from obvious and overt like holographic images and color shifting inks, to invisible covert and forensic security which are impossible to detect without the proper tools.

Brand Protection Physical Security Features

Some popular physical security examples include:

  • Tamper evident packaging – labels, stickers, or seals that when opened or tampered with, provide immediate evidence that the product has been compromised.
  • Chemical and physical markers – can be hidden from consumers and counterfeiters and can only be seen with specific detectors that are calibrated to a specific wavelength to verify authenticity.
  • QR Codes – can now be scanned without the need for an app, using a smartphone camera that directs consumers to a webpage to authenticate the product and then introduces the consumer to another webpage where they can register their warranty, learn more about the product and even suggest other complementing products.

Physical security features will continue to evolve and remain an important part of your brand protection strategy. Future trends in physical security include new nanoprint technologies, printed electronics, and revolutionary inventions in digital printing. It is anticipated that these and many more will become the standard for high security printing.

Digital Authentication

Digital product authentication is a brand protection strategy that works by adding a unique digital identifier to your product. This allows your company to track the lifecycle of products, identify where transactions are taking place, and provides data analytics and insight into your products and customers. Unique QR codes on each product can be scanned by inspectors along the supply chain to ensure authenticity, as well as by end customers at the point of sale. Consumers can instantly authenticate their products and your brand can engage customers by serving relevant offers and information.

For example, a well-known spirits company was facing counterfeits across China, resulting in loss of brand loyalty, consumer trust and revenue. Authentix helped them implement a multi-layered authentication solution using covert and overt features. One of the solutions implemented was a QR code featuring a digital consumer engagement experience as well as authentication verification. The result was 90 million bottles with unique identifiers that could be tracked through the supply chain, allowing the company to detect and shut down over 150 counterfeiting locations including warehouses, retail shops and print shops.

Online Brand Protection

The rise in online sales has been unfortunately accompanied by the rise in counterfeiting on online marketplaces, social media platforms, and websites. When looking for an online brand protection services provider, it is important to ensure their scanning software is proprietary and not provided by a third party.  This gives you more control and security and makes it easier to do takedowns on social media where counterfeiters can advertise for a few hours at a time to targeted audiences. You should also ensure that your protection partner has the ability and resources to scan webpages and marketplaces, social media platforms, e-commerce apps, messaging apps like WeChat, payment sites, and the dark web for infringing content and listings.

It is also important for your online brand protection partner to have global marketplace coverage to allow you to do test purchases and verify product authenticity around the world. AI and machine learning capabilities can also give you actionable insights that lead to in-person shut downs and allow local law enforcement to conduct raids.

Following is a good example of one of Authentix’s clients using online brand protection technology to secure their brand:

This case is very similar to most companies that sell their products online. The company was a highstreet fashion brand that had a problem with lookalike and copycat products, posing a threat to their brand reputation and a decrease in sales. After Authentix implemented various image recognition tools that analyze and compare images against known logos and patented designs, test purchases were made and it was detected that the products were indeed infringements. The success rate from online enforcement was 98% and over 300 raids were then conducted, resulting in 8 civil litigation cases.

Evaluating Your Brand Protection Needs

Security should be integrated into your brand protection solution design from day one, not just as an afterthought. Early evaluation helps your brand with packaging design and product launches further down the road. Conducting a brand risk assessment helps determine in which markets your company is having counterfeiting issues and can help you gauge which type of security solution or solutions are the best fit for your situation. Having security technologies that give customers peace of mind the product they are purchasing is authentic, can be a great strategic advantage as your competitors struggle to add security to their products once they suffer the effects of counterfeits. Security should be a priority for long-term success so that your weak points don’t become susceptible to counterfeiters.

Authentix Customized Brand Protection Solutions

Authentix’s team of brand protection experts is ready to help your company every step of the way to protect your products with the latest and greatest security technology capabilities. Here are just some of the things you can expect when you work with our brand protection specialists:

  • Assessment and advisory services
  • Defining the gaps between your current practices and industry leading practices
  • Specific recommendations for improvement
  • Assistance with process implementation
  • Forensic product analysis services
  • Risk and vulnerability assessment
  • Simulated detection by third parties
  • Identification of possible materials used for security feature replication
  • Prototype development services
  • Product and packaging prototypes that incorporate security features designed specifically for you
  • Implementation services
  • Help managing the deployment of Anti-Counterfeiting Program technology in your facility

Contact Authentix today to learn more about how our brand protection strategies can help maintain your brand’s integrity in the global marketplace.


About Authentix

As the authority in authentication solutions, Authentix brings enhanced visibility and traceability to today’s complex global supply chains. For over 25 years, Authentix has provided clients with physical and software-enabled solutions to detect, mitigate, and prevent counterfeiting and other illicit trading activity for currency, excise taxable goods, and branded consumer products. Through a proven partnership model and sector expertise, clients experience custom solution design, rapid implementation, consumer engagement, and complete program management to ensure product safety, revenue protection, and consumer trust for the best known global brands on the market. Headquartered in Addison, Texas USA, Authentix, Inc. has offices in North America, Europe, Middle East, Asia, and Africa serving clients worldwide.

DigiTrax™: A Digitally Connected Authentication, Traceability and Consumer Engagement Solution

     |     

Our innovative DigiTrax™ solution is the next generation of digital brand protection offering real-time product authentication and unique consumer engagement opportunities while providing insightful business intelligence. DigiTrax helps secure your brand’s integrity and engage with your customers in a unique way. Watch the video to learn more:

Want to learn more about how DigiTrax can help protect your brand? Schedule a consultation with our team today.









By clicking on the button below, I accept the Terms of Use and Privacy Policy as provided through the Authentix® website (www.authentix.com) including the use of individual personal data subject to the EU Data Privacy Act 2018 and General Data Protection Regulation (EU/GDPR)

Understanding Our Clients’ Customers is Critical to a Successful Brand Protection Program

     |     

By David Graham, Vice President, Global Brand Protection, Authentix

The anti-counterfeiting industry plays an increasingly important role in protecting brand owners by helping to prevent the financial losses and dangers to their consumers caused by counterfeit products. As a leader in brand protection, Authentix prioritizes the protection of our client’s products from fraud and imitation, preventing revenue loss and maintaining the trust of their consumers. 

To provide complete brand protection and support to our clients, it is essential that we understand their customer’s issues and needs. Developing a comprehensive brand protection program relies on our fundamental understanding of their consumers so we can develop protection strategies that effectively mitigate risks and provide quality services. Doing so will build confidence and enhance satisfaction for our clients and their customers.

The Real Impact of Counterfeiting for Consumers

Understanding our client’s customers is essential in recognizing the impact of counterfeit products on their lives. Counterfeit products are typically of low quality and pose a higher risk of health issues. They often lack protective features, resulting in significant harm to end consumers.

For example, counterfeit pharmaceutical products can cause users severe harm or even death. Similarly, the use of counterfeit automotive parts can lead to serious injuries or fatal accidents on the road. The impact of counterfeit products extends beyond monetary losses for brand owners, emphasizing the importance of preventing counterfeit products from entering the market.

By better understanding the true impact of counterfeit products on our clients’ customers effective strategies can be developed, and the necessary preventive measures taken. Through improved cause-effect analysis, Authentix can better identify the probability of a product becoming compromised and explore appropriate security solutions to implement and combat these risks.

Designing Brand Protection Strategies That Attract Consumers

Authentix prioritizes the end customer experience to offer relevant and practical solutions that effectively address their needs. By understanding customer’s preferences and purchasing habits, Authentix can design customized brand protection strategies targeted at the appropriate markets. This involves identifying prevalent counterfeiting issues in specific markets and developing practical measures to promptly detect and prevent these issues, thereby safeguarding the brand from potential damage.

Understanding client and end-customer needs and preferences is an ongoing process that necessitates constant monitoring and updating. This ensures the deployment of the most suitable brand protection solution that effectively caters to the target customers. Through continuous assessment and collaboration with our clients, we can adjust and modify strategies to align with market changes and emerging consumer issues. Being adaptable and flexible in our approach and methodology is a fundamental value at Authentix, ensuring client satisfaction and security are upheld.

Retaining & Restoring Consumer Trust

Understanding the end customer experience also offers the advantage of protecting and enhancing brand reputation. Counterfeit products can severely undermine customer trust in the brand(s). By implementing effective anti-counterfeit measures and fulfilling our commitment to brand protection, our clients can preserve and strengthen their customer’s faith and confidence. This is especially crucial for companies that have encountered potential counterfeit incidents and need to restore trust among their core clientele for sustained long-term success.

Improving RevenueBrand Protection Services

Authentix places significant importance on end consumers, which directly impacts our client’s financial success. Authentix provides effective preventive brand protection measures that mitigate revenue loss by proactively addressing potential issues that may affect customers. Our efforts ensure the proper implementation of specialized brand protection programs and anti-counterfeit measures for our clients.

When customers perceive a company’s genuine dedication to product safety and attentiveness to their needs and concerns, they are more likely to remain loyal and make future purchases. Retaining satisfied and trusting customers is typically more cost-effective and less time-consuming than acquiring new customers.

Brand Protection Programs Promote Confidence

Understanding the issues and needs of our client’s customers is a fundamental aspect of a successful brand protection partnership at Authentix. We strive to safeguard our clients’ products from compromise, which can have significant financial implications and potentially harm consumer health, impacting brand credibility.

Authentix is committed to raising awareness of the crucial role that comprehensive brand protection programs play in our clients’ continued success and to providing quality and trusted brand protection solutions and services that produce excellent results. Understanding our client’s end consumer is central to our operations, ensuring optimal outcomes are achieved.

Ready to Learn More?

SCHEDULE A CONSULTATION

About Authentix

As the authority in authentication solutions, Authentix brings enhanced visibility and traceability to today’s complex global supply chains. For over 25 years, Authentix has provided clients with physical and software-enabled solutions to detect, mitigate, and prevent counterfeiting and other illicit trading activity for currency, excise taxable goods, and branded consumer products. 

Through a proven partnership model and sector expertise, clients experience custom solution design, rapid implementation, consumer engagement, and complete program management to ensure product safety, revenue protection, and consumer trust for the best-known global brands on the market. Contact us now to see what we can do for your brand.

David Graham, Vice President, Global Brand Protection for Authentix
With over thirty years of experience managing the extensive supply chains of numerous global retail giants throughout Europe, Africa, Australia and Asia, David brings a vast amount of expertise and knowledge to the Authentix Brand Protection team.

Having worked closely with Brands over the years—living and working in these continents—David is able to bring a better understanding and appreciation of what Brands are looking for to better secure their products in the hectic world of global brand protection and anti-counterfeiting.

To learn more about our brand protection solutions and how we can help you, please email David at David.graham@authentix.com.

Can a Company Be Truly Sustainable Without Considering How to Prevent Counterfeiting?

     |     

By Mike Consterdine, Brand Account Development Manager

Globally, many companies have committed to the fight against plastic pollution, with manufacturers changing components and materials to produce more recyclable packaging. The time and investment put into this sustainability goal is also a balancing act with businesses becoming carbon neutral.  

However, a sometimes forgotten consideration is that counterfeit products entering the supply chain may lack sustainable materials and are often unsafe and non-compliant. In this light, an essential component of sustainability efforts is to prevent counterfeiting.

The main motivation for those conducting illicit trade is financial gain. Therefore, there is an overwhelming argument that sustainability is not considered in the manufacturing, distribution and sale of counterfeit products. Counterfeiters manufacture these goods in factories that are often unregulated and include cheaply sourced and substandard materials that are not only harmful to workers but also contribute to the pollution of the environment. 

So the question is, can companies truly achieve sustainability while at the same time not considering or having a plan to remediate counterfeit goods? We’ll see that sustainability and counterfeiting prevention go hand-in-hand.

The Impact of Counterfeiting

While it’s well-known that counterfeiting and intellectual property infringement supports organized crime, there are also other societal impacts to consider:

  • Illicit trade rings traffic people across borders for exploitative labor, often in abhorrent conditions with little or no compensation. 
  • Across multiple sectors, including apparel, consumer goods, cosmetics, electronics and pharmaceuticals, counterfeit products have been proven to contain hazardous and toxic elements. When those products come into contact with a person or are consumed, they can be harmful or even fatal.
  • Counterfeit or non-compliant products may find their way into legitimate manufacturing and distribution channels, compromising supply chain integrity. This results in companies being unable to prove that the product or process adheres to company sustainability statements and practices.
  • When counterfeit products are seized, there is an opportunity to reuse or recycle them. However, de-labeling a branded item is not always possible as this process can also be costly, and some product materials are unsafe to reuse. In these circumstances, the products will be destroyed by court order, impacting the environment with further waste and pollution.

The ability to prevent counterfeiting substantially reduces all these risks.

How to Prevent Counterfeiting

There are many ways companies can prevent counterfeiting. First, they should conduct a comprehensive review of intellectual property rights and supply chain channels. This process will provide insight into the strengths and weaknesses of company processes and their IP portfolio. The results allow efficient and effective decision-making by legal, regulatory and enforcement teams and support sales, marketing and operational divisions.

The next essential step, even if the company has an in-house brand protection specialist, is collaborating with key partners. These partners can include regional enforcement teams, online brand protection service providers and those who are experts in securing products through authentication and traceability solutions.

Brand Protection Services to Prevent Counterfeiting

An online brand protection company can assess the market while providing an overall view of the extent of the IP infringement problem, whether that be in counterfeit, design or copyrights. Engaging a third-party provider for brand protection services assists in time management. They also can conduct online takedowns and provide actionable intelligence for prioritizing offline targets.

By applying a unique and secure identifier to a product or packaging, a product can be authenticated or tracked through its lifecycle, with all data on the product stored in a cloud-based platform for various business functions. Consumers or field investigators also can immediately authenticate a product by scanning the identifier via an app, a forensic reader or a mobile/cellular device. 

By implementing these strategies, a company can mitigate its risk of counterfeiting, diversion and non-compliant products entering the legitimate supply chain. 

Return on Investment

Brand protection can be seen as a cost center. But a return on investment can be determined by increased consumer confidence through fewer customer returns, higher sales driven by the removal of infringing online content and offline target prioritization. Brand protection can also help avoid costly product recalls, which will likely increase emissions, representing another link between preventing counterfeits and sustainability

Implementing secure brand protection technologies can also lead to more efficient processes and less waste, supporting company sustainability initiatives.

Combining Sustainability and Counterfeiting Prevention

While counterfeiting can be deemed a byproduct of a successful business, it can irreparably damage a brand’s reputation with customers and the general public. It also invites questions regarding what the intellectual property rights holder is doing to prevent unregulated, often harmful, illegal practices.

Corporate social responsibility is often seen as a buzzword. But, when it comes to consumer trust and sustainability statements, it is imperative to consider all factors. Reviewing component sourcing, manufacturing processes, policies and regulations is only the start to increasing sustainability. 

Brand protection, online and offline, is more than “stopping the fakes.”  It’s also about protecting reputation, human life and the environment. 

Ready to Learn More?

SCHEDULE A CONSULTATION

Trust Your Brand Protection to Authentix

As the authority in authentication solutions, Authentix brings enhanced visibility and traceability to today’s complex global supply chains. For over 25 years, Authentix has provided our clients with physical and software-enabled solutions to detect, mitigate and prevent counterfeiting and other illicit trading activity for currency, excise taxable goods, and branded consumer products. Brand protection is an integral component of our services.

Through our proven client partnership model and sector expertise, we offer custom solution design, rapid implementation, consumer engagement and complete program management to ensure product safety, protect revenue and maintain consumer trust and loyalty for the best global brands on the market. Contact us now to see what we can do for your brand.

Mike Consterdine, Account Development Manager for Brand, Authentix
Mike Consterdine has been involved in the Brand Protection industry for nearly 15 years, helping brands secure their products through protection and enforcement of their IP portfolio. Having worked as an external investigator for a number of global luxury and apparel brands, Mike also developed and managed the international enforcement program for a leading consumer electrical appliance manufacturer.

Using his wealth of knowledge in the field he is able to consult brand owners on best practices in anti-counterfeiting and anti-diversion programs. Representing Authentix, Mike will be able to outline how secure product marking enables authentication and traceability, whilst online to offline brand protection enables business growth.

Mike explains that Brand Protection is “a passion as well as a profession, protecting people is the reason. Whether you have counterfeiting, diversion or fraud issues, it’s key to be proactive and collaborate with your network to be successful in any Brand Protection program.”

To learn more about our brand protection solutions and how we can help you, please email Mike at Mike.consterdine@authentix.com.

Are Companies Held Liable For Fake Products?

     |     

By the Authentix Brand Protection team

Brand protection often isn’t the first thing on a company’s mind as they launch a new product. When a company sets out to design a product, they want it to be a hit. They strive to make it useful and helpful to people, and they want their customers to trust and love the new product. Many brand owners refer to their products as their “baby” due to the long and challenging process to get it just right, in addition to the thought and testing that goes into the product research and development process.

One of the most powerful practices a company should apply to their products is often overlooked and that is brand protection, which can protect a company from unforeseen liability costs and customer mistrust in emerging or gray markets. Estimates vary, but the total amount of counterfeit goods impacting the job market is astonishing — it’s responsible for the loss of 2.5 million jobs globally.

When Brand Reputation is on the Line

An expression often used in sales states, “You are only as good as your last deal.” Similarly, brand reputation plays a significant role in the sales of most products. More than ever, customers are informed and do their research, reviewing competitors and finding the best deal according to various factors such as quality, cost, and reputation. A positive brand reputation can take years to build and only moments to collapse. (For example, in 2019, Nike pulled its products from the Amazon marketplace in part to try to lessen the damaging effects that counterfeit goods were then having on its brand). A brand’s positive reputation can be ruined due to a counterfeit product damaging someone’s skin, hair, body, or health.Online Brand Protection Strategies

Any product that is a premium brand and popular (e.g., car parts, cosmetics, pharmaceuticals, clothing, or even bed sheets) will be counterfeited at some point and can severely damage the reputation of the brand name. It can take many years and a significant amount of money in marketing and legal fees to rebuild public trust. The risk of this predicament can be materially reduced or even avoided with an investment in a brand protection program right from the start.

Forgoing Brand Protection Is Not an Option

When companies decide to forgo a brand protection program for the release of a premium product, several adverse outcomes can occur. The product may end up in non-targeted marketplaces where consumers find counterfeited or unauthorized and often heavily discounted versions. In many cases, this could also happen with brand owners’ third-party manufacturers producing unauthorized products for their own benefit.

In these cases, brand owners may also be held liable for those counterfeit products because there is little way to prove the provenance or authenticity of the fakes vs. the legitimately produced goods. For example, if a consumer in the marketplace gets hurt by an unauthorized or fake product, the brand owner is often exposed to liability. The legal fees can pile up quickly with no end in sight, all while product sales drop due to the lack of consumer trust.

In addition to counterfeited products, there is the gray market where consumers may find a company’s genuine products sold by unauthorized distributors at deeply discounted pricing, such as being sold out of the “back of the truck” or through other nonstandard channels. These may include expired or out-of-season products where the selling price is much less than the Minimum Advertised Price (MAP).

Supply Chain Physical Visibility & Traceability Simplified

Navigating a solid brand protection program does not have to be overly complex or challenging to implement. For example, putting a digital identifier or UIM on a product is much like putting a license plate on a car. That plate’s unique letter and number combinations should only be found on the exact vehicle with matching registration.

The same goes for placing a security taggant and/or a secure digital code on a product — it is only made for that specific product. The quantity and size of the product’s merchandising and packaging will determine the best security feature(s) needed to later identify the authenticity and unique attributes belonging to the product.Brand Protection Strategies

A covert or visible encrypted QR code with a unique, serialized item level ID can provide track-and-trace insight for a brand owner. This can provide much-needed supply chain visibility and uncover gray market diversion. If there is a question of the authenticity of a product, a consumer or inspector can check for various covert and/or overt security features (depending on the brand protection program the brand has in place).

For example, when a company’s product is entering the country of destination, the border patrol can easily detect the proper security taggants and confirm the validity of the product, allowing it to reach the distribution and retail channel much faster without delays in customs.

Online Brand Protection for Added Peace of Mind

Online brand protection is another factor to consider. If a product is sold in an online marketplace, there are tools today that can make the authentication process even easier. Many providers now have image searching and can digitally compare images for authorized licensed goods offered on non-authorized sites. Also, as part of online brand enforcement efforts, inspectors can view the product image for special overt security features to help identify these suspect products.

Today’s modern online brand protection advancements allow for identifying fake products and providing ancillary services such as cease-and-desist letters and a formal process to request site takedowns from legitimate or dark web marketplaces. Online brand protection services can perform sample buys and help find, chase, catch, and investigate infringing operators in multiple marketplaces, shutting them down and further protecting your trademark.

Consumer Engagement & Authentication Significant to Growth

For traditional core brand protection programs, the growing trend of merging consumer engagement with digital product authentication in a single platform can be insightful for a growth-minded strategy. There are many technology options for both brand owners and authentication providers in developing these hybrid and dual-purpose programs. Such services allow consumer interaction for marketing purposes while forming large data sets to detect trends as the product’s journey is tracked.

As consumers become more vigilant and seek genuine products when shopping for premium brands, including a consumer engagement feature also provides an effective means of protecting products. Moreover, it enables direct engagement with loyal consumers to help increase both customer interaction and continued brand loyalty.

The Value of Complete Brand Protection

The return on investment of implementing a brand protection program from the beginning of a product’s introduction to the market is a valuable and worthwhile investment for several reasons. It can help detect fake or unauthorized products quickly, mitigate potential liability costs that may result, and help support a brand owner’s preferred market pricing by avoiding unauthorized gray market activity. Being able to police all third-party manufacturers can also be a crucial result of a well-implemented brand protection program.

Ready to Learn More?

SCHEDULE A CONSULTATION

About Authentix

As the authority in authentication solutions, Authentix brings enhanced visibility and traceability to today’s complex global supply chains. For over 25 years, Authentix has provided clients with physical and software-enabled solutions to detect, mitigate, and prevent counterfeiting and other illicit trading activity for currency, excise taxable goods, and branded consumer products. Through a proven partnership model and sector expertise, clients experience custom solution design, rapid implementation, consumer engagement, and complete program management to ensure product safety, revenue protection, and consumer trust for the best-known global brands on the market. Headquartered in Addison, Texas USA, Authentix, Inc. has offices in the North America, Europe, Middle East, Asia, and Africa serving clients worldwide.  For more information, visit https://www.authentix.com.

Footnotes

1 BASCAP, Estimating the global economic and social impacts of counterfeiting and piracy, Frontier Economics, 2011

2 Elizabeth Segran, Nike tried playing nice with Amazon. Here’s why it didn’t work, Fast Company, 2019

 

The Sum of Its Parts: Well-Curated Authentication Technologies in the Fight against Illicit Trade

     |     

By the Authentix Brand Protection Team

Whether you’re a brand owner protecting a commercial product or a government authority issuing critical, high-security documents, you’re continually faced with the ongoing challenges of combating illicit trade and counterfeiters.

To counter these constant attacks on legitimate industry players, high security authentication solutions are needed to safeguard the integrity of global commerce and can include both physical and digital security solutions. Security can be added to documents, products, and product packaging or labels. In addition to adding these security features, the more advanced and effective authentication programs should also include track and trace capabilities that allow the tracking of protected products throughout the supply chain.

With a comprehensive and well-curated authentication program, brand owners and governments can take a more proactive approach to protecting consumers from potential health and safety issues and themselves from the financial impacts of counterfeiting and diversion.

Product Marking: The Foundation

Physical marking solutions can range from simple yet effective to highly sophisticated and extremely secure. A typical marking ‘toolkit’ consists of four basic elements, each of which performs a different function, ranging from detection, prevention, deterrence and engagement.

  • Tamper Evident – cannot be opened and reapplied without visible damage, therefore deterring and preventing nefarious actors from interfering with the product
  • Overt – visible to the eye and hard to copy, which deters from and ultimately prevents attempts to mimic the feature due to the high barrier to entry both from a cost and from a technical point of view
  • Semi-overt – visible to the eye upon performing a simple action, which means the brand owner can choose when to change a feature from covert to overt by timing the invitation to the public to engage in the authentication of the product
  • Covert/forensic – invisible to the eye, detectable using a hand-held device (covert) or laboratory equipment (forensic); being invisible, covert and forensic features do not prevent counterfeiting, but they facilitate unequivocal and quick in-field verification of authenticity and detection of counterfeits.

A combination of these features presents the most water-tight strategy against a number of illicit trade activities including counterfeiting, diversion, and infringement. To ensure successful implementation with minimal impact to current processes already in place, the most effective approach is to integrate the application of security features into existing processes within your manufacturing and vendor base, whether it is printing, labels, tamper evident seals or specialized overt and covert inks, using existing materials and packaging designs.

Going Digital: Connecting your Asset to the Cloud

Product marking is the foundation that supports digital security technologies, given that the physical form of digital identifiers can be validated when combined with robust printed security features.

Products become digital touchpoints by adding unique, item-level digital identifiers to the product or its packaging. Unique identifiers can be delivered in various formats such as overt or covert Datamatrix codes, QR codes, human readable alphanumeric codes, or embedded NFC chips, added to any part of the product or packaging or other carrier vehicle. These digital identifiers can also be embedded into an existing code format or added as a covert ‘twin’ of a visible code in cases where codes are at risk of being removed in an unauthorized attempt to destroy the traceability of the product.

In general, there are three main users of this technology:

  • Supply Chain Participants – manufactures, distributors, 3rd party logistics
  • Inspectors – a brand’s internal team, local law offices, law enforcement and customs agents
  • Consumers/e\End-Users – for authentication verification and engagement

What’s Next: Using your Connected Asset to your Advantage

Connected products are typically used in three different ways and for different objectives. These include journey tracking, authentication and consumer engagement as shown in this graphic.

 

Driven by a rules engine that is calibrated by the brand owner or government, each of these paths direct critical data back to them in the form of actionable insights and analytics that are leveraged for strategic decisions across multiple agency focus areas or corporate functions, such as legal, operations, supply chain, marketing and others.

Examples of data that can be gleaned include locations of suspicious activity, excessive scan volume, geo- fence violations, multiple scans/single ID alerts, top scanned codes, and more.

The Role of Data: Collect, Analyze, Act, Share

There are many areas in which data can prove exceptionally meaningful. These include:

  • Secure mark: validates if the product is genuine or fake
  • Distribution: routes, port of entry, freight forwarders, dates, etc.
  • Illicit activity: captures and ear-marks products/codes that are suspected as counterfeit or diverted
  • Source: increasingly important raw materials and components
  • Product: records product make or model, part number, batch and quality control data
  • Production: captures manufacturer, date and time of production
  • Location: identifies where was the product made, shipped, sold, or scanned
  • Consumer: opt-in driven consumer intelligence, contact data, location of scan, device, engagement

This data can easily be shared across internal teams, with law enforcement and customs, and used for benchmarking and best practices in discussion with other brands.

Examples of client dashboard in the Authentix DigiTrax™ platform

 

In summary, both physical and digital technologies play an important role in the fight against illicit trade. Creating digitally connected products turns them into valuable tools for inspection, reporting and communication. When leveraged to its full functionality, the combination of physical and digital technology is a game-changer for our industry.

To learn more about Authentix brand protection solutions, visit authentix.com.

Inspector-Led Authentication – Whitepaper Download

     |     

Protecting your brand from counterfeiters should be easy, right? One would think but the Brand Protection conversation can be a challenging one within a product organization. You need an effective anti-counterfeit solution that incorporates both emerging technology and data analytics to start the conversation.

In this whitepaper you will learn what is needed to develop an anti-counterfeit plan:

      • Evolving role of the consumer in authentication
      • Internet of things, data aggregation and actionable insights
      • Improvements in inspector-led tools
      • Return-on-investment paradox









Using Data Collected in Brand Protection Programs

     |     

Protecting consumers and safeguarding your company’s brand identity and reputation is becoming increasingly challenging in today’s environment with the continued growth of counterfeit and diverted products entering the market. At the same time, consumers are taking a more proactive role in choosing to buy brands they know and trust, while expecting increased transparency in brand promise.

As supply chains become increasingly complex, brand owners are facing intense pressure to respond to traceability and transparency challenges by utilizing digital systems for collecting valuable data and analyzing and acting upon the visible trends to help consumers authenticate products at points of sale, or alternatively connect and engage with the brand owner directly via the web or app. A digital solution helps with monitoring product movement in the supply chain, as well as direct consumer feedback, to confirm legitimate or potential suspect product in the marketplace.

67% of consumers say brand trust has a great deal of influence over their buying decisions.

In todays connected marketplace, most companies already collect and use various forms of data analytics to drive ongoing business decisions and strategic initiatives. In fact, business action and decision making has become reliant on the use of data analytics to manage many day-to-day operations. Despite this growing reliance on data, most organizations have yet to apply the practice successfully when it comes to brand security. This can partly be attributed to the lack of reliable data available since the early adoption of digital track and trace capabilities for risk-based products is only beginning. The key to effectively using data in brand protection programs is to understand what data is available now, what data is needed that is not available, how to efficiently collect and analyze the data and lastly, what action can be taken based on this analysis to effectively reduce counterfeiting and diversion while simultaneously engaging directly with the consumer.

Data Identification

An enormous amount of meaningful data can be gleaned in digital tracking for brand protection programs including information about a product’s provenance, its journey through the supply chain, the location/date/time of associated transactions including consumer scan events, validation of authentication or suspected illicit activity, and even direct consumer marketing and engagement.

However, how to apply the data once collected can be different for each company. At Authentix, we collect supply chain and consumer interaction data from multiple sources and aggregate it into our secure cloud-based platform on behalf of our brand owner clients. From there we are able to configure rules and analyze data trends to provide our clients with complete visibility into the suspect events or grouped metadata revealing weak links or threats in supply chain operations that often point to product compromise.

Data Collection

The following are key areas for collecting data using digital track and trace technology.

  • Data Carrier Technology – includes multiple formats of barcodes, NFC and RFID technologies for supply chain tracking, purchase and post purchase consumer engagement, inventory movement, and theft prevention. These technologies vary greatly in terms of volume capacity, costs, application requirements and security levels, so it is important to evaluate the best types of code formats and integration to existing manufacturing and packaging processes that best meet the minimum needs that would produce a valuable return.
  • Track & Trace – can be accomplished during sourcing, manufacturing, distribution, and pre- and post-sale stages. During the printing, manufacturing or packaging process for example, the scope of implementation choices widen and we can provide multiple routes to enable tracking of product origin information, manufacturing location(s), production lines designation and more. Additionally, as the product nears closer to the point of sale, we’ll begin seeing authentication activity and the collection of meaningful data such as distributor and consumer interaction and engagement, and sustainability and circularity.
  • Authentication – in most digital track and trace systems, analysis of authenticity is often achieved via a smartphone. This can be by company inspectors using a proprietary mobile application all the way to the consumer who can interact with the product without having to download a mobile app. Using the Authentix DigiTrax™ track and trace solution as an example of direct consumer engagement, the smartphone user simply scans a proprietary and encrypted QR code which directs them to a custom URL experience that can include, among other things, the unique information associated with the individual product scanned. These consumer product scan events including geo location, date, time, product and product provenance information are submitted to the secure cloud-based DigiTrax platform where the information can be used to understand purchasing trends, market directly to the user, or allow the user to authenticate the product using proprietary codes or PINs. If designed for the purpose, the results of the authentication can be sent back to the user in real time. This technology also enables inspectors in the field and other key stakeholders to identify the authenticity of a product instantly using a more sophisticated mobile application. In addition, consumers may also use the DigiTrax platform to verify authenticity of other products or for the purpose of continuing engagement with brand owner purely for marketing purposes.
  • Online Surveillance and Enforcement – are methods, systems, and services used to identify, investigate and takedown unauthorized e-commerce websites that deal in illicit trade of counterfeit, diverted, or stolen products. This is accomplished through automated online tools and services such as marketplace monitoring, WeChat micro tasking, and machine learning which can identify risk levels, hot zones and image matching to police and eliminate unauthorized sales of product and illegal use of trademarks on the internet.
Putting Data to Use

Reliable and timely data feedback enables brand owners to quickly answer complex supply chain events, pinpoint trouble spots, and take corrective and even preventative action to reduce the instances and threats of unauthorized product entering the marketplace. Data can be used to assess multiple business-centric operations to increase sales and market share, acquire and build trust with new customers, and reinforce brand assurance, to name a few. In addition, as consumers become more reliant on smartphones for collecting and communicating information, brand owners can capture consumer data to tailor experiences and increase engagement and loyalty.

Using Data to Drive Success

Authentix customers are using valuable brand protection data and analytics in multiple ways with great success. In one customer success story, an international wine exporter faced counterfeiting and diversion issues in China, resulting in loss of consumer trust and risk to its strong market share and long term brand loyalty it had spent years building. Authentix helped the client implement a multi-layered digital authentication solution with covert and overt on-product features that flags, collects and analyzes all inspector and consumer scanning activity including the capability of retail product authentication by the consumer. The result? Over 150 counterfeit retail locations were identified and remediated. Also, through direct consumer engagement, loyal brand purchasers became more confident in product authenticity and the client was able to maintain premium pricing for their superior and quality products.

In another example, an international brand customer incurred online marketplace counterfeiting in Asia, putting consumer health, safety and loyalty at risk as well as decreasing revenues. Authentix helped the client implement a multi-phased online brand protection monitoring solution and services to identify and investigate the online sale of spurious product and locate complicit bottling and closure manufacturers involved in the illicit trading. Website takedowns were initiated, resulting a 90% reduction in fake products in Indonesia, 1,500 online listing takedowns in Malaysia, and 13 raids and enforcement actions conducted in China.

Start Big or Small. Just Start.

It’s important to point out that you do not have to implement a full scale approach to digital authentication initially and it’s easy to begin collecting and leveraging data – even if it’s just one product or product line for a particular geography. Alternatively, digital automation for brand protection programs can be implemented in a sweeping fashion as an end-to-end solution from the start with a full technology suite. Most clients choose to implement in logical steps based on risk assessment, ease of implementation, and to the most critical geographic areas. The key is to get a secure digital mark on your product and start the data collection process. Ultimately, it is how much data, the association of the data elements for analysis, and the conclusions and action you take that determines how much your brand protection program can be enhanced by bringing in digital track and trace automation. The key is to start, analyze, adjust, expand and continue until the data flow and insights provided are resulting in the development and refinement of actions and policies to take command of the risks faced each day.

Learn more about Authentix brand protection solutions, HERE.

Back To Top