The threats posed by counterfeits, cheap pass-offs and smuggling are higher today than ever before. Federation of Indian Chambers of Commerce & Industry (FICCI) estimates that businesses in Fast Moving Consumer Goods (FMCG), packaged foods, personal goods, mobile phones, alcoholic beverages, bottled water, and pharmaceuticals, have lost over one lac crore rupees of sales in 2015 in India alone
A staggering figure that is growing at over 20% per annum. This threat affects everyone in our society: consumers health and safety, businesses loss of profits and market share, and the government loss of tax revenue.
Many businesses underestimate the risks posed from counterfeits and pass-offs, they argue that they don’t suffer a direct cash loss. True, counterfeits cause no cash loss. However, each fake, each cheap pass-off is one less product sold by the brand owner, meaning lower revenue and lower profit. steadily eroding trust in the brand and risks the future of the business. Counterfeiting is one of the fastest growing crimes in the world. Companies and countries lose millions and consumers suffer from illness and even death because of counterfeit products and medicines.It is estimated in a recent study by the International Chamber of Commerce (ICC) that by 2022 the negative impacts of counterfeiting and piracy are projected to drain US$4.2 trillion from the global economy.
Every successful brand is copied to some extent and a brand’s success can at times be measured by the number of counterfeits available in the market place. This is flattery with poison – counterfeits cause no cash loss to the company, but counterfeits are like a virus and if left unchecked will destroy the brand.