The Rise of Anti-Counterfeiting Technology in Modern Markets
Vikas R. Jain is the Founder & CEO of Acviss Technologies with over 17 years of experience in technology and innovation. He specializes in anti-counterfeiting solutions, protecting over 60 million products across 80+ global brands. His flagship product, Uniqolabel, utilizes mobile technology, cryptography, and computer vision to combat counterfeiting. Vikas has also founded ventures in knowledge networks and retail analytics, and is an angel investor. Committed to creating social impact, he leads Camp CPR, a nonprofit company focused on improving emergency response in India. His expertise spans blockchain, track-and-trace systems, and sustainability in business practices.
In the recent interaction with M R Yuvatha, Senior Correspondent, siliconindia, Vikas R. Jain shared his insights on The Rise of Anti-Counterfeiting, Counterfeiting Technology in Modern Markets.
Counterfeiting is the illegal production and selling of branded goods without permission. Such goods can be anything from fake luxury accessories to medicines. They catch the verifier’s eye by their resemblance to real products but sometimes turn out to be financially costly, creating a lot of safety and wellness issues in the long run.
Understanding Counterfeiting and Its Consequences
The landscape of anti-counterfeiting solutions are revolutionizing global brand protection against a problem, estimated to have grown in an amount of $3 trillion in terms of counterfeit products sold worldwide. Counterfeits can be found in just about every industry, such as apparel and electronics, or even agricultural products, but a disturbing fact in this is the figure that states 30% of pesticides and seeds sold in some economies are fake.
Conventional measures like holograms and labels are no longer enough, prompting the adoption of smart labels, non-clonable technology, and digital watermarks. These innovations, including NFC, RFID, and unique codes, enhance product monitoring and authentication. E-commerce platforms like Amazon and Flipkart face counterfeit return challenges, but AI, machine learning, and computer vision now help verify products and combat fake listings, addressing consumer concerns, especially after the pandemic surge in online shopping, where nearly half of shoppers worry about receiving counterfeit products.
Transforming Anti-Counterfeiting Strategies
Modern technology has found itself as one of the necessary weapons in combating counterfeit goods, most so in countries where it might not have such robust deterrent in its legal systems. Especially in India, where mostly fake manufacturers operate by leveraging the escapes in laws, technology remains a forward-thinking shield to fight the creation and distribution of fake commodities. The more traditional approach to identifying counterfeit operations has been by way of field investigations and raids. However, with such approaches, offenders end up returning to the counterfeiting business after legal intervention . Brands can, therefore, prevent counterfeit products from landing in the hands of the consumers by integrating advanced technological solutions.
The three main challenges associated with the implementation of anti-counterfeiting technologies on companies' businesses are as follows:
Larger organizations usually face a tough struggle with the onboarding of different groups and stakeholders, especially in implementation of changes related to packaging advancements and necessary additional equipment. So, first overcoming this challenge and then obtaining agreement from everyone may require to avoid resistance.
The second challenge is education. Consumers need to be taught about the new measures. Businesses must clearly communicate how anti-counterfeiting systems work and how consumers can verify product authenticity. Brands address this through creative campaigns, offering incentives like cashback or rewards for product verification, and using advertisements on various media platforms to spread awareness.
The third challenge is aligning the supply chain stakeholders, including warehouses, super distributors, wholesalers, and retailers. This is critical to maintain product traceability and ensure that consumers get authentic products. Businesses overcome this by demonstrating the ROI benefits of anti-counterfeiting solutions, leveraging creative consumer messaging, and using existing supply chain systems effectively, even if not all stakeholders are onboarded.
The Fight Against Counterfeit Goods
Anti-counterfeiting technology further strengthens supply chain integrity, from production all the way to consumption. Products have to pass through so many nodes in the supply chain-the manufacturers or farmers going through to the processing units, to the warehouses and then retailers before they get consumed, the risk of counterfeiting increases. By integrating anti-counterfeit tech with supply chain tracking systems, every stage of the product's journey can be monitored, ensuring that the product received matches what was originally sent. This guarantees the authenticity of the product by the time it reaches the consumer.
Additionally, anti-counterfeit technology can help prevent the sale of fake products on online platforms and ensure the quality and sustainability of products, such as verifying that they were made following sustainable practices. Governments are also introducing regulations, such as mandating 2D codes on agrochemical and pharma products to ensure authenticity. Some countries are even considering holding online marketplaces accountable for the sale of counterfeit goods, further emphasizing the importance of these technologies. Also there is discussion happening around fake reviews fake websites and marketplaces selling fake products in India but there are countries like the US as well which is making regulations so that these marketplaces can be held responsible for fake products being sold on the platform. But today marketplaces often claim they cannot control what is sold on their platforms. However, regulations are being developed to hold these platforms accountable for the sale of fake products.
Looking Ahead
Global counterfeiting remains on the rise due to the growth in a market for fake goods amounting to $3 trillion now to $4 trillion, involving sectors such as nutritional supplements and pharmaceuticals. Protein substitutes for protein supplements and counterfeit anticancer drugs represent critical health risks, demonstrating growth in the demand for anti-counterfeiting solutions. The industry values at more than $150 billion and grows by around 20% every year due to this demand. Brands are embracing smart packaging where static packaging is transformed into an interactive experience using NFC, RFID, and non-clonable technologies. Innovations such as smart labels with flexible electronics, Bluetooth, and tamper-evident features enhance the packaging, improving safety and freshness monitoring.
Non-visible anti-counterfeiting technologies are also growing in popularity. These technologies embed features that are not visible to the naked eye, making it difficult for counterfeiters to replicate products. Advanced systems use natural deformities unique to genuine products, such as those formed during molding processes. Brands can authenticate products with a high degree of accuracy by mapping and verifying these deformities using computer vision systems.
In the recent interaction with M R Yuvatha, Senior Correspondent, siliconindia, Vikas R. Jain shared his insights on The Rise of Anti-Counterfeiting, Counterfeiting Technology in Modern Markets.
Counterfeiting is the illegal production and selling of branded goods without permission. Such goods can be anything from fake luxury accessories to medicines. They catch the verifier’s eye by their resemblance to real products but sometimes turn out to be financially costly, creating a lot of safety and wellness issues in the long run.
Anti-counterfeit technology can help prevent the sale of fake products on online platforms and ensure the quality and sustainability of products, such as verifying that they were made following sustainable practices.
Understanding Counterfeiting and Its Consequences
The landscape of anti-counterfeiting solutions are revolutionizing global brand protection against a problem, estimated to have grown in an amount of $3 trillion in terms of counterfeit products sold worldwide. Counterfeits can be found in just about every industry, such as apparel and electronics, or even agricultural products, but a disturbing fact in this is the figure that states 30% of pesticides and seeds sold in some economies are fake.
Conventional measures like holograms and labels are no longer enough, prompting the adoption of smart labels, non-clonable technology, and digital watermarks. These innovations, including NFC, RFID, and unique codes, enhance product monitoring and authentication. E-commerce platforms like Amazon and Flipkart face counterfeit return challenges, but AI, machine learning, and computer vision now help verify products and combat fake listings, addressing consumer concerns, especially after the pandemic surge in online shopping, where nearly half of shoppers worry about receiving counterfeit products.
Transforming Anti-Counterfeiting Strategies
Modern technology has found itself as one of the necessary weapons in combating counterfeit goods, most so in countries where it might not have such robust deterrent in its legal systems. Especially in India, where mostly fake manufacturers operate by leveraging the escapes in laws, technology remains a forward-thinking shield to fight the creation and distribution of fake commodities. The more traditional approach to identifying counterfeit operations has been by way of field investigations and raids. However, with such approaches, offenders end up returning to the counterfeiting business after legal intervention . Brands can, therefore, prevent counterfeit products from landing in the hands of the consumers by integrating advanced technological solutions.
The three main challenges associated with the implementation of anti-counterfeiting technologies on companies' businesses are as follows:
Larger organizations usually face a tough struggle with the onboarding of different groups and stakeholders, especially in implementation of changes related to packaging advancements and necessary additional equipment. So, first overcoming this challenge and then obtaining agreement from everyone may require to avoid resistance.
The second challenge is education. Consumers need to be taught about the new measures. Businesses must clearly communicate how anti-counterfeiting systems work and how consumers can verify product authenticity. Brands address this through creative campaigns, offering incentives like cashback or rewards for product verification, and using advertisements on various media platforms to spread awareness.
The third challenge is aligning the supply chain stakeholders, including warehouses, super distributors, wholesalers, and retailers. This is critical to maintain product traceability and ensure that consumers get authentic products. Businesses overcome this by demonstrating the ROI benefits of anti-counterfeiting solutions, leveraging creative consumer messaging, and using existing supply chain systems effectively, even if not all stakeholders are onboarded.
The Fight Against Counterfeit Goods
Anti-counterfeiting technology further strengthens supply chain integrity, from production all the way to consumption. Products have to pass through so many nodes in the supply chain-the manufacturers or farmers going through to the processing units, to the warehouses and then retailers before they get consumed, the risk of counterfeiting increases. By integrating anti-counterfeit tech with supply chain tracking systems, every stage of the product's journey can be monitored, ensuring that the product received matches what was originally sent. This guarantees the authenticity of the product by the time it reaches the consumer.
Additionally, anti-counterfeit technology can help prevent the sale of fake products on online platforms and ensure the quality and sustainability of products, such as verifying that they were made following sustainable practices. Governments are also introducing regulations, such as mandating 2D codes on agrochemical and pharma products to ensure authenticity. Some countries are even considering holding online marketplaces accountable for the sale of counterfeit goods, further emphasizing the importance of these technologies. Also there is discussion happening around fake reviews fake websites and marketplaces selling fake products in India but there are countries like the US as well which is making regulations so that these marketplaces can be held responsible for fake products being sold on the platform. But today marketplaces often claim they cannot control what is sold on their platforms. However, regulations are being developed to hold these platforms accountable for the sale of fake products.
Looking Ahead
Global counterfeiting remains on the rise due to the growth in a market for fake goods amounting to $3 trillion now to $4 trillion, involving sectors such as nutritional supplements and pharmaceuticals. Protein substitutes for protein supplements and counterfeit anticancer drugs represent critical health risks, demonstrating growth in the demand for anti-counterfeiting solutions. The industry values at more than $150 billion and grows by around 20% every year due to this demand. Brands are embracing smart packaging where static packaging is transformed into an interactive experience using NFC, RFID, and non-clonable technologies. Innovations such as smart labels with flexible electronics, Bluetooth, and tamper-evident features enhance the packaging, improving safety and freshness monitoring.
Non-visible anti-counterfeiting technologies are also growing in popularity. These technologies embed features that are not visible to the naked eye, making it difficult for counterfeiters to replicate products. Advanced systems use natural deformities unique to genuine products, such as those formed during molding processes. Brands can authenticate products with a high degree of accuracy by mapping and verifying these deformities using computer vision systems.
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