Preserving Brand Integrity: Uniting Physical and Digital Solutions for Brand Protection
According to the Organisation for Economic Cooperation and Development, Counterfeit products account for approximately 3.3% of global trade, amounting to $522 billion annually, in 2019. As technology advances, so do the capabilities of counterfeiters, making it crucial for brands to adopt comprehensive strategies to safeguard their reputations and protect their consumers. The proliferation of counterfeit goods not only damages brand reputation but also poses risks to consumer safety.
In the battle against counterfeit threats, the synergy of physical and digital brand protection solutions is paramount. Security labels, track and trace systems, and integrated measures act as a unified defence mechanism. Counterfeit threats encompass a range of illicit activities that undermine businesses, consumer safety and economies. The combination of physical and digital brand protection solutions helps in safeguarding the brand and the consumers from three of the major counterfeit threats – Diversion, Fraud (Harvesting and Re-filling), and Counterfeit/Duplicating.
In this article, we will explore the importance of this combination and how it can effectively counter the major counterfeit threats faced by brands and consumers alike.
The Timeless Relevance of Physical Brand Protection Solutions
Physical brand protection solutions refer to the tangible measures and technologies implemented to protect products and brands from counterfeiting, unauthorised replication, and tampering. These solutions often involve the use of physical security features that are difficult to replicate or counterfeit such as security labels, holograms, specialised inks, etc.
According to the Global Brand Counterfeiting Report, security labels and holograms are the most widely used physical brand protection solutions, accounting for 34% of the market share. Holographic labels and seals incorporate intricate patterns and optical effects that serve as visual authentication tools, enabling consumers and enforcement authorities to authenticate the product. Specialised inks and printing techniques, such as UV inks or micro printing, are used to create hidden or intricate elements that are difficult to manipulate. Apart from being challenging to reproduce, the security features incorporated in the physical brand solutions are also tamper-evident, providing visible evidence of tampering or manipulation.
De La Rue's physical brand protection solutions are highly customizable to meet the specific needs of brands across various industries. The authentication labels, PURE™ and IZON™, provide a visible and tamper-evident solution for product authentication. These labels feature intricate designs, holographic elements, and secure printing techniques that make them difficult to replicate. They are an effective solution for brands seeking to safeguard their products and protect their reputation from the threats of counterfeiting and illicit trade.
Physical brand protection solutions can incorporate features such as tamper-evident seals, security labels, and serialised coding on the product packaging. These solutions make it easier to detect and identify instances of fraud by providing visible evidence of tampering and unauthorised opening. The physical solutions include unique packaging elements, such as holographic labels or customised packaging designs, deterring and preventing the practice of harvesting and refilling. The solutions are specifically designed to deter counterfeiting and duplication of products.
“The Global Brand Counterfeiting Report mentions that brands that implement a comprehensive brand protection strategy combining physical and digital elements experience a reduction in counterfeiting incidents by an average of 62%”
Enhancing Security and Trust through Digital Brand Protection Solutions
Digital brand protection solutions encompass a range of strategies and technologies aimed at enhancing a brand's physical solutions and augmenting its revenue protection teams. These solutions leverage digital tools and techniques to monitor, detect, and combat threats such as counterfeiting, brand impersonation, and unauthorized distribution. These solutions employ digital tools and techniques to aggregate and centralise data into actionable insights.
As mentioned by Fortune Business Insights, the global track and trace solution market size was valued at $5.52 billion in 2022 and is projected to grow from $6.42 billion in 2023 to $20.10 billion by 2030. Track and trace systems utilise unique identifiers and QR codes, to track a product’s journey throughout the supply chain. These systems enable brand owners to monitor product authenticity, trace the origin of goods, and detect any instances of diversion or unauthorised distribution. Geolocation technologies enable brands to pinpoint the location of products, ensuring they are within authorized markets.
One such powerful solution is Traceology® offered by De La Rue. Traceology is an innovative track and trace system that enables brands to monitor and secure their supply chains effectively. Not only does it help in detecting and preventing counterfeits but also provides valuable insights into supply chain visibility, product authentication, and consumer engagement. Owing to the features provided by Traceology®, without the platform, it would be much more difficult for companies to prevent and detect the diversion of products. Without incident reporting, it would be more challenging to identify the root cause of diversion and implement corrective actions. This could lead to an increase in counterfeit products on the market, which could harm legitimate businesses and consumers.
Digital brand protection solutions play a vital role in combating counterfeit threats. Consumer-facing solutions enable companies to monitor the presence of counterfeit products in the market more effectively through geolocation and authentication technologies. The track and trace systems can aid in tracking the movement of products from manufacturing to the point of sale. This helps in easy detection and addressing diversion promptly, targeting enforcement actions to shut down actors impacting their brand reputation and revenue. The authentication codes and serial numbers can help in recording instances of harvesting and refilling, with manipulated products becoming obvious in the database, revealed by genuine codes being scanned multiple times and in multiple locations.
Elevating Brand Protection Through Digital - Physical Integration
Combining digital and physical brand protection solutions offers a comprehensive and multi-layered approach to combat counterfeiting and protect the brand and consumers. By uniting physical and digital brand protection solutions, a broader spectrum of potential threats is covered, which increases the chances of detecting counterfeits at various stages of the supply chain. This holistic approach enables to address different counterfeit scenarios effectively.
The Global Brand Counterfeiting Report mentions that brands that implement a comprehensive brand protection strategy combining physical and digital elements experience a reduction in counterfeiting incidents by an average of 62%. By integrating physical and digital elements, brands can implement track-and-trace systems that enable real-time monitoring and authentication throughout the supply chain. Physical solutions like tamper-evident security labels with QR codes, when coupled with digital solutions such as mobile authentication apps, can help brands establish a robust authentication process that can verify the legitimacy of the product. The combination creates a multi-layered defence against the threats, safeguarding brand integrity, consumer trust, and revenue streams.
Brand protection and anti-counterfeiting strategies have become increasingly important. With the advent of e-commerce and globalization, counterfeiters produce new ways to sell counterfeit goods and harm legitimate brands. Consumer education plays a crucial role in the success of anti-counterfeiting and brand protection strategies. According to Counterfeit Intelligence Bureau, 54% of consumers believe that brand protection is primarily the responsibility of the brand owner. Educating consumers on how to identify genuine products and avoid counterfeit can help in creating a strong brand image and prevent the sale of counterfeit goods. As the brand protection industry is ever evolving, it is vital to stay informed and adaptable to protect intellectual property and ensure safety.