In today’s complex supply chains and demanding market environments, brand owners are facing more challenges than ever when it comes to the protection of their brands and goods. Challenges such as counterfeit and pirated products, gray market practices and unauthorized distribution are part of their daily business.
Counterfeit is growing in value and reach, harming businesses and brand owners across all continents and industries. By 2015, the International Chamber of Commerce (ICC) expects the value of counterfeit products globally to exceed $1.2 – $1.7 trillion USD. The estimated economic costs of counterfeiting in the food and personal care industry are about $50 billion each per year.
As for brand owners, counterfeits are big brand value detractors resulting in considerable financial losses, e.g. lower sales revenues, eroded market share, wrongful lawsuits etc. Besides these direct monetary losses, brand owners are also facing heavy impacts on their brand image and brand reputation. Due to counterfeit products, consumers see less value in authentic products versus cheaper look-alikes, brand reputation is harmed once consumers are let down by counterfeits that don‘t work, consumers‘ health and safety may be at risk, and relationships with distribution partners will suffer.
What can brand owners now do to effectively fight counterfeiting? One of the drivers of counterfeiting is the increased complexity of the modern supply chain – internationalization, outsourcing, e-Retailing etc. leads to less control for brand owners.
Brand owners need to secure their assets from source to sale, as counterfeit products can and do enter the supply chain from many points. This includes from the very raw material sourcing stage, at the manufacturing site, across distribution channels and at the final point of sale.
Holistic brand protection solutions can integrate control across the supply chain to combat counterfeits and channel diversions. Brand protection solutions enable authentication and tracing via various stakeholders e.g. company internal audits/authentication controls, third-party inspections and authentication checks by consumers.
There are various different technologies on the market enabling brand protection solutions, such as holograms, watermarks, 2D barcodes, matrix digital codes, etc. All of these enable asset authentication but compared to RFID technology, these methods can be more easily copied or tampered with.
RFID is very powerful and unique as it provides a combination of brand protection functions – these are authentication, track & trace, and tamper evidence. This multi-functionality enables an integrated end-to-end brand protection solution making RFID a highly cost effective and easy to implement choice for total asset protection along the supply chain.
Key reasons to choose RFID brand protection solutions:
DUCLOT, the famous and most prestigious Bordeaux wine merchant, protects its unique DUCLOT BORDEAUX COLLECTION CASE using Qual’ID Solutions’ services and NXP’s HF RFID chip. Consumers can tap their NFC-enabled mobile phone against DUCLOT‘s RFID tagged Bordeaux collection case to verify its authenticity via a unique serial identifier on each tag. The RFID solution also offers integrated traceability from vines all the way into points of sale, and consumers receive additional product information, e.g. about the growth variety, the cellars, serving tips etc.
NXP is #1 in Identification and leading in RFID industry innovations. We offer a full suite of high performance contactless solutions across the full RFID frequency range – enabling a world of smart objects. Our ICODE, NTAG, MIFARE and UCODE product families meet your specific brand protection needs across different security levels and operating ranges. We’re trusted by governments and the banking industry for decades, equally working with multinational clients across many industries.