Counterfeits are big business. A global analysis estimated lost sales of $1.82 trillion in 2020. And it’s not just the sales lost to counterfeits. Jobs are lost. Even lives are lost. And brand trust – intangible and invaluable – is damaged, perhaps forever.
Fake products aren’t confined to luxury goods like handbags and watches. They include:
- Pharmaceuticals – Whether they are ineffective sugar pills, or contain dangerous toxins, counterfeit medications have been estimated to kill as many as 1 million people annually.
- Art and Antiquities – Reputable museums and private collectors paid a grand total of $80 million for counterfeit works from one New York forger, as documented in the film “Made You Look.”
- Consumer goods – From consumer electronics to vintage wines, fake labels and fake contents cost the U.S. $600 billion per year.
- Manufacturing components – Falsely labeled components and materials were reported to cost the automotive industry alone $3 billion per year.
Adding insult to injury, counterfeits destroy brand trust. A Harris Poll of 2018 found that if Americans learned that they had purchased a fake product, 73% would stop buying from the company that sold it.
Technology comes to the rescue in the form of RFID. RFID assigns a unique identifier to every element of a product. It starts at the very beginning of the manufacturing process and continues through product completion, shipping, warehousing, and retail sale. The authenticity of each finished product can be certified. Its RFID-managed and controlled “history” is unimpeachable. Your brand’s reputation is enhanced though the use of anti-counterfeit technology, and customers trust your brand more than ever.
RFID has many benefits, from inventory management to operational security and more. But perhaps none is more valuable, in the long run, than protecting your brand.
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