Luxury Brands Under Attack?

2 October 2001

News Article

DE LA RUE PLC


News Release 2 October 2001

LUXURY BRANDS UNDER ATTACK?
De La Rue exhibits solutions to counterfeiting and diversion at Luxe Pack.

De La Rue, the global experts in strategic and technical solutions to combat counterfeiting, copycatting and diversion, are exhibiting for the first time at Luxe Pack 2001 - the luxury product packaging exhibition held in Monaco on 24-27 October.

The increase in the number of cases of brand infringement clearly shows that brands, particularly luxury goods, are under attack. In the perfume and toiletries sector alone, losses to counterfeiting are estimated at 7.2% of annual revenue, which amounts to £289 million in the UK and Eu 3017 million in the EU.

Chris Clark, Business Development Director at De La Rue, said:
"Loss of goods in the supply chain is a major drain on business revenues. Product counterfeiting alone is estimated to account for between 5 and 7% of world trade, with a value of US$280bn. However, in the luxury goods sector the real damage is to the image of the brand through shoddy counterfeit versions and genuine products appearing in unauthorised outlets."

De La Rue offers a comprehensive range of solutions to such problems - solutions which can be tailored to different needs and different production processes: whether it's via the use of holograms on the packaging; watermarks; remote frequency identification devices (RFID); covert taggants; tear tapes and security labels; or computerised track and trace systems.

With over 200 years of confidential, secure and discreet service to governments, leading banks and major brand owners, De La Rue has firmly established its place at the forefront of brand protection.

Visit De La Rue on stand DE1 and consult the experts about protecting the integrity of your brands.

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About De La Rue
De La Rue, the cash to secure transactions group, is the world's largest commercial security printer and paper maker, involved in the production of over 150 national currencies and a wide range of security documents such as stamps and vouchers as well as brand protection. The company is also a leading provider of cash handling equipment and solutions to banks and retailers as well as a range of identity systems to commerce and governments world-wide. De La Rue also acts as a strategic partner and adviser to customers offering them total solutions in areas of activity that capitalise on De La Rue's reputation for security, integrity and trust.

For more information on De La Rue visit: www.delarue.com

For further information on De La Rue Brand Protection contact: Deborah Robinson or Patricia Lennon on: (tel) + 44 1943 604027 or (fax) +44 1943 601303 Email: drobinson@blueprintpr.com or plennon@blueprintpr.com

Editor's Notes

Threats to Brand Owners Include:

  • Diversion
    This form of brand infringement can shatter a carefully laid selective distribution strategy and leave brand owners' official stockists seriously undermined by a steady flow of branded goods, sourced from lower-priced markets and brought into countries for which they were not intended.

  • Counterfeiting
    Counterfeiting is now a worldwide problem. Often, the perpetrators are a trusted part of the supply chain, exploiting privileged information from legitimate contracts to release faked products at the same time - or even ahead of - the brand owner.

  • Copycatting
    Whilst copycats are not actually counterfeits, soundalike and lookalike products steal market share and exploit the brand owner's investment in design, development, production and marketing. It is vital that security is built into every stage and that any leaks can be identified, traced back and quickly corrected.

Examples
Some of the brand companies for whom De La Rue provides brand security include:

  • Calvin Klein - clothing
  • Microsoft Office software and computer peripherals (mouse)
  • Bayer - pharmaceuticals
  • Rover - car parts
Others include a leading sportswear brand, a high value giftware company and a major personal hygiene product.

De La Rue Brand Protection Can Provide the Following for Editorial Purposes:

    In-depth articles on brand protection
    De La Rue Brand Protection can provide articles, written by any of its experts in various industry sectors, on brand protection issues such as parallel imports, counterfeiting, risk management, technical aspects and solutions to brand protection.

    Expert Comment
    The company's brand protection experts can provide in-depth analysis of the issues affecting today's global brand owners in their fight to protect brand integrity and market share.

    Research and statistics
    De La Rue Brand Protection can provide information and statistics relating to the economic impact of damage to brand integrity via counterfeiting and diversion.

    Images
    Images include a wide selection of fake goods, technical solutions and diagrams of the supply and risk chain - available via email or ISDN.