The critical role of data in combating counterfeit and diversion cannot be overstated. According to the U.S. Chamber of Commerce, counterfeit products cost the global economy over $500 billion annually. Data insights serve as a crucial tool in this environment, offering real-time capabilities to detect and counteract illicit trade. Counterfeiting not only impacts consumer safety and brand reputation but also presents significant health risks and undermines brand loyalty.
By harnessing the capabilities of data analytics, industries, brand owners, regulatory bodies, and law enforcement gain an unprecedented vantage point, enabling them to zoom into the intricacies of counterfeit operations and strategically counteract illegal trade networks. These organisations are undoubtedly better equipped to identify and disrupt counterfeit networks on a global scale, with the power to collaborate, share intelligence and actively participate in cross-border initiatives.
Proactive approach
Incorporating a proactive approach is essential in combating counterfeit activities. An effective intelligence process involves three major steps: collection, processing/analysis, and the use of actionable insights.
Robust collection methodologies provide the reliable data to underpin the validity of conclusions, while statistical modelling techniques discern subtle deviations and irregularities that might escape traditional scrutiny, identifying potential hotspots of counterfeiting activities. The data provides the evidence from which to plan and execute targeted tactical activities to combat illicit trade across an organisation.
Reaping the rewards
Brands leveraging these tools can swiftly detect anomalies and patterns indicative of counterfeit activities and take targeted action to prevent revenue loss and reputational damage. Track and trace software solutions provide brands with a detailed breakdown of verifications, guiding targeted brand protection strategies, which provides them with a significant competitive advantage
Utilizing data analytics enhances brand protection by strengthening the brand message to stakeholders, including consumers and government representatives. Swiftly addressing counterfeiting threats maintains consumer trust and confidence in product authenticity, safeguarding the brand's market position and long-term viability.
Companies with high data maturity navigate the counterfeiting landscape with precision, making informed decisions that counter immediate and longer-term threats. The data ensures resource optimization for effective and economically viable interventions, making the fight against counterfeiting sustainable in the long run and provides the information to understand the return on investment.
Consumer engagement
A study by Label Insight found that 94% of consumers are likely to be loyal to a transparent brand, with 73% willing to pay more for its products. Authentication data gathered in brand protection efforts can be strategically utilized to enhance consumer engagement and experience by analyzing authentication patterns and consumer interactions. Sharing aspects of this data with consumers fosters transparency and trust, reinforcing consumer confidence in the brand's commitment to authenticity and positions the brand to deliver tailored experiences that resonate with individual preferences. Fostering loyalty, advocacy, and long-term brand affinity.
In essence, authentication data is a multifaceted tool for brand protection, facilitating informed decision-making to protect and grow profit while building stronger connections with consumers, ultimately enhancing their engagement and loyalty to the brand.
