Protecting your brandIssues and opportunities
Mike Fairley
Director, Strategic Development
Tarsus Group
Protecting your brand
Fakes, counterfeits, pirated goods:they are all terms used to describe merchandise that has been copied and sold without the consent of the brand owner – but other factors also come into brand protection
RFID
Protecting your brand
Diversions Counterfeits
Over-stockOut of Stock
Recalls Returns
All of the above contribute to the brand protection requirement
Protecting your brand
What is the global problem?
Global annual losses due to counterfeiting have recently been estimated at $600bn
Over 200,000 jobs are lost worldwide each year because of counterfeiting
100s of people die or are injured each year through using counterfeiting products
Protecting your brandWhat products are most commonly counterfeited?
Pharmaceutical/medical products
Perfumes and cosmetics
Cigarette and tobacco products
Clothing
Footwear
Sports clothing, sports shoes and sports products
CDs, DVDs, etc
Textiles
Computer equipment and accessories
Automotive and aeronautical parts
Fashion accessories
Toys
Electrical products
Chemicals
Games and business software
Protecting your brand
What kind of counterfeit goods are most likely to cause prolonged illness and death?
According to the World Health Organisation it is counterfeit or fake medicines
Protecting your brand
What are the risks to health with counterfeit drugs?
Active ingredients may be missing or the product adulterated with toxic substances, or with ingredients which clash with other medicines.
This can have significant cost implications for drug manufacturers, pharmacies, medical insurance companies, hospitals and health services
Protecting your brand
How do counterfeit or fake medicines get defined?
A counterfeit medicine is said to be one that has no active ingredient or is an expired drug which has been re-labelled and sold.
A fake drug may not resemble the original in any way
Some Governments describe both of these as spurious medicines.
Protecting your brand
What kind of pharmaceutical products are the most commonly counterfeited and where are they mainly being used?
Pharmaceutical products most commonly counterfeited
Developed countries Emerging countries
Hair loss
Sexual dysfunction
Hormones
Obesity
Anti-psychotics
Antibiotics
Painkillers
Anti-malarial drugs
Cancer drugs
HIV anti-vitals
Protecting your brand
Based on research by Business Insights
Protecting your brand
How do counterfeiters work to defraud manufacturers of genuine goods and deceive the purchaser or general public at large
By counterfeiting the entire product + packaging andlabeling
Counterfeiting packaging and labeling only to enable rejector out-of-date products to be re-packaged and passed-off asgood
Re-using genuine packs/labels with counterfeit productsUnauthorised use of a look-a-like or registered brand name
with a counterfeit productCounterfeiting of ownership/sale documents – including
guaranteesCounterfeiting instruments of payment, i.e. cheques, credit
cards
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Who are the main producers of counterfeit goods?
Terrorist groups Organised crime gangs Drug smugglers Money launderers
Fakes are frequently sold through: Market or street traders The Internet
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Points to note:
Counterfeiters are very professional and well organised
They often have a great deal of financial backing
Are frequently in possession of the latest manufacturing technologies
Soon catch up with the latest anti-counterfeiting solutions
And can be quite ruthless
Protecting your brand
What can the label industry and brand owners do to help authenticate products, reduce counterfeiting, enhance brand security and minimise theft or product tampering?
Protecting your brand
Answer: Wherever possible, build counterfeit
deterrence, product authentication and brand protection technologies into the design of the label or pack
Combine technologies to provide the most effective overall solutions
If possible, make each label/pack unique
Keep ahead of the counterfeiters by changing the solutions used on a frequent basis
Overt + Covert + Track-n-Trace
Track & Trace
Bar Code.
Insert printed on
chemically reactive
paper with microfibers.
Hologram.
Microtext.
Clear varnish
coating with
taggants over
logo.
Hologram.
RFID tag
inside carton.
Source: Packaging World, June 2006. Keys to package security.
No one solution is sufficient
Protecting your brand
What technology solution are available to the label converter and brand owner to provide brand protection and authentication?
Security substrates Security inks, varnishes and coatings Security designs and backgrounds Security printing and converting Sequential coding and numbering Optically Variable Devices (OVDs) – primarily
holograms Optically variable inks, films and coatings Bio-codes and DNA RFID and other ‘smart’ label solutions
Protecting your brand
Security Papers and boards containing:
Security threads
Watermarks
Planchettes
Security fibres
Biocodes and DNA
Microtaggants
Luminescence
OVI particles
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Security varnishes, inks and laminates Luminescent inks
Magnetic inks
Iridescent OV inks
Fugitive inks
Photochromic inks
Color change inks
Black light varnishes
Fluorescent additives
Protecting your brand
Security designs and backgrounds
Guilloches
Relief images
Variable line thickness
Micro text and micro-lettering (font sizes down to 0.1mm)
Dataglyphs
Digital watermarking
Brand protection and
authentication
Sequential coding and numbering
Bar codes
Snowflake codes
Datamatrix codes
Laser coding
Invisible coding
Optical coding
Magnetic coding
Brand protection and
authentication
Optically variable devices (OVDs)
Holograms: 2D, 3D, 2D-3D, stereogram
Transparent holograms
Self destruct labels and seals
Optically variable inks and coatings
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Other possibilities
VOID materials (standard
or customized)
Customized holograms
RFID
Security garment labels
Protecting your brand
Customized coatings•The above coating can be customized for any brand
• Materials are only provided to the end users converters of
choice
• Process occurs prior to adhesive coating (wide web – cost
effective)
Protecting your brand
This provides better shelf appeal that is more difficult to replicate
Tostitos images property of Pepsico, utilized under Fair Use Act
You can also design a new high-end look
An improved Brand Image Makes Counterfeiting More Difficult
Brand protection and
authentication
How can the converter or brand owner narrow down the choice of technology or security solution?
One route is to use a grid that sets out high and low cost options, combined with high and low level security
Protecting your brand
How can the choice of technology or security solution be narrowed down?
Answer:
One route is to use a grid that sets out high and low cost options, combined with high and low level security
Protecting your brand
How can the grid aid selection?
Aim for highest security with optimum cost
Combine low and high security elements to enhance protection, i.e. sequential number over a hologram
Use technologies from different areas of the grid for maximum effect
Build your own grid for your own products
Protecting your brand
Protecting your brand
Remember, labels have to be designed, printed with inks, placed on a substrate and converted.
So why not suggest security inks, substrates, designs and converted solutions to your customers from the beginning so as to enhance their brand protection?