Industry Strategy

The illicit trade in counterfeit goods is a multi-billion dollar business affecting a wide range of products and services across various industries that continues to threaten profits and brand image. Whatever your industry faces, we have your solution.

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Whatever your industry faces

As of 2020, annual sales losses from counterfeiting of cosmetics and personal care products reached USD$5.6 billion. Despite the evolution in technology and packaging of cosmetic brands, counterfeiters are still succeeding in mimicking the distribution or sales of genuine products. The consequences faced by consumers are dangerous and as well for brand owners who are immediately held responsible.

A wide range of chemicals used in the production of crops or livestock increases crop yields and food supply across the world. Data from Europol indicates that in certain EU member states the percentage of counterfeit agrochemical products may be as high as 25%. Ensuring security against return on warranty fraud and protecting product integrity is essential in preserving such technical innovation.

The E&E industry carries a value estimated to be worth USD$1.5 trillion by 2024. A leading company in this field may face potential legal battle due to fake products that may cause serious harm to its consumers. Challenges such as the distribution or sales of fake products, presence of liability claim, return on warranty fraud and decrease in product integrity remain continuous threats.

Counterfeiters are hopping on the trend, turning high quality luxury and watchmaking products into low quality and even dangerous buys. In the watchmaking market alone, the Swiss watch industry received a staggering USD$618 million in revenue loss in 2017, making distribution or sales of fake parts and return on warranty fraud issues to watch out for.

EUIPO estimates that USD$1.5 billion worth of revenue is lost annually by the EU sector while WHO estimates 25.5% of all alcohol globally consumed is in the form of unrecorded alcohol. Failing to meet tax, quality and health regulations, counterfeit wines and spirits are being powered by the distribution or sales of fake products and decrease in product integrity.

EUIPO estimates that USD$2.6 billion is lost every year in the EU by the legitimate auto parts industry due to counterfeit tyre sales and USD$213 million due to counterfeit battery sales. On a global level, the challenges are being driven by the distribution or sales of fake parts, presence of liability claims and decrease in product integrity.

According to the OECD and EUIPO, international trade in counterfeit pharmaceuticals reached USD$4.4 billion in 2016, threatening public health and safety that continues at present. Counterfeiting is a growing threat for companies where true challenges lie in the distribution or sales of fake medicines, medical devices and packaging, presence of liability claims and decrease in product integrity.

FMCG products account for more than half of all consumer spending, making this industry lucrative for counterfeiters and as a result, threatening for consumers and brand owners. Playing a large role in the economy, FMCG loses 30% of its business due to counterfeited products brought about by the distribution or sales of fake goods and the presence of liability claims.

Whatever your industry faces

Cosmetics

As of 2020, annual sales losses from counterfeiting of cosmetics and personal care products reached USD$5.6 billion. Despite the evolution in technology and packaging of cosmetic brands, counterfeiters are still succeeding in mimicking the distribution or sales of genuine products. The consequences faced by consumers are dangerous and as well for brand owners who are immediately held responsible.

Agrochemicals

A wide range of chemicals used in the production of crops or livestock increases crop yields and food supply across the world. Data from Europol indicates that in certain EU member states the percentage of counterfeit agrochemical products may be as high as 25%. Ensuring security against return on warranty fraud and protecting product integrity is essential in preserving such technical innovation.

Electrical and Electronics

The E&E industry carries a value estimated to be worth USD$1.5 trillion by 2024. A leading company in this field may face potential legal battle due to fake products that may cause serious harm to its consumers. Challenges such as the distribution or sales of fake products, presence of liability claim, return on warranty fraud and decrease in product integrity remain continuous threats.

Luxury and Watchmaking

Counterfeiters are hopping on the trend, turning high quality luxury and watchmaking products into low quality and even dangerous buys. In the watchmaking market alone, the Swiss watch industry received a staggering USD$618 million in revenue loss in 2017, making distribution or sales of fake parts and return on warranty fraud issues to watch out for.

Wines and Spirits

EUIPO estimates that USD$1.5 billion worth of revenue is lost annually by the EU sector while WHO estimates 25.5% of all alcohol globally consumed is in the form of unrecorded alcohol. Failing to meet tax, quality and health regulations, counterfeit wines and spirits are being powered by the distribution or sales of fake products and decrease in product integrity.

Automotive

EUIPO estimates that USD$2.6 billion is lost every year in the EU by the legitimate auto parts industry due to counterfeit tyre sales and USD$213 million due to counterfeit battery sales. On a global level, the challenges are being driven by the distribution or sales of fake parts, presence of liability claims and decrease in product integrity.

Pharmaceuticals

According to the OECD and EUIPO, international trade in counterfeit pharmaceuticals reached USD$4.4 billion in 2016, threatening public health and safety that continues at present. Counterfeiting is a growing threat for companies where true challenges lie in the distribution or sales of fake medicines, medical devices and packaging, presence of liability claims and decrease in product integrity.

Fast-moving Consumer Goods

FMCG products account for more than half of all consumer spending, making this industry lucrative for counterfeiters and as a result, threatening for consumers and brand owners. Playing a large role in the economy, FMCG loses 30% of its business due to counterfeited products brought about by the distribution or sales of fake goods and the presence of liability claims.

We bring solutions to your challenges

Distribution and sales of counterfeit products

As the quantity in fakes increase, so does the quality – making it more difficult not only for consumers, but brand owners and inspectors to determine which is genuine and which is not. Secure technologies that include unique, tailored and sophisticated visible, invisible and connectivity features helps stop the distribution and sales of such illicit activity.

Product liability claims

Counterfeiters are diligent in finding new ways to defeat the route and origin of a counterfeit product. That is why the authentication of products requires tools that are robust, fast and remote to ensure the brand owner has hard evidence for counterfeit dispute cases, defending themselves from potential liability claims while overall protecting brand integrity.

Sale of substandard goods

The extra expense of adding security features reduces the sale of substandard goods flooding the market, which if not attended to in the beginning, can become more costly in the end for a brand. Implementing a visually engaging solution that makes authentication not only efficient, but also immediate, will positively contribute to the entire global economy.

Return on warranty fraud

Adding a protective layer of defence against counterfeiting plays a vital role in product recall situations. By allowing product authentication at re-entry points in the supply chain, brand owners are able to prevent rogue warranty claims and ultimately protect brand value. In addition, the capability for owners to forge direct links with consumers enables high levels of trust.

Your problem has a solution

We can’t guarantee a world without counterfeits as threats continuously come from left and right. But our solutions and services can guarantee you a secure line of defence against risks throughout the supply chain, making the world a safer place.

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Why work with SICPA?

For almost a century, we have worked with governments, central banks, high security printers and industry – providing secured identification, traceability and authentication solutions and services.