The International Chamber of Commerce estimates that counterfeiting and piracy costs U.S. companies between $200-$250 billion a year and roughly 750,000 jobs to date.
You can't count on product fraud to decrease, but you can count on RR Donnelley Brand Protection labeling to combat counterfeiting and fraud. To provide the proper level of security, a layering of several security features is often used.
Company's interested in implementing a Brand Protection program must:
- Understand and qualify the extent of the problem
- Set key milestones and performance parameters to measure the effectiveness of the program
- Establish an internal strategy/program and create a formal organization lead by a senior manager preferably with P&L responsibility
Issues of counterfeiting for the manufacturer:
Hard issues
- Loss of margins
- Loss of market share
- Death or injury from use of false product (especially pharmaceutical, but could be fake auto parts or lighters or batteries etc.)
- Recalls due to confusion in market
- Litigation
Soft issues
- Loss of perceived brand equity
- Erosion of market share
- Shorter product life cycle
- R&D $$$
- Advertising and marketing $$
- Trust
There are three distinct levels of counterfeiting protection. The key to an effective security/anti-counterfeiting program is layering multiple security features into one label.
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