Branded goods - The challenges faced by brand owners

Counterfeits

Counterfeit luxury products is one of the major issues confronting the luxury goods and consumer products industry today.

Parallel import

Unauthorised diversion of authentic products is a constant problem. There is a need for a cost effective, reliable and efficient supply chain and distribution network surveillance mechanism and tool.

Unauthorised source

Unauthorised diversion of genuine goods and products is a constant problem. Excess stock or defective products are being sold directly from manufacturing plants by unscrupulous manufacturers. There is a need for an effective surveillance mechanism.

Advanced forgery

Current product and security labels are easily forged and copied by forgers. There are two key methods of forgery;

• Redrawing where the forgers redraw the product and security labels producing high quality forgeries
  
• Scanning where a photograph or a scanner is used to capture the image to reprint the product and security label, always producing a degraded forgery

Field authentication

It is often impossible to conduct field authentication, hampering effective enforcement by brand owners and the authorities. Often the product has to be brought back for experts and specialized equipment to identify authenticity, adding to the complexity and cost of enforcement.