Counterfeit goods are a serious threat to the consumption sector. The consumer is at immediate risk but every stakeholder in the process of sale stands to lose including the retailer, the brand and its owners. Gone are the days when counterfeiters were small-time operators. Today, they are large organised enterprises with top-of-the-line infrastructural facilities, sometimes even bigger than original brand producers. Although malicious activities like adulteration, substitution, tampering or misrepresentation have persisted since time immemorial, today it is $1.7 billion industry in itself.
FMCG is a sector most prone to adulteration. With a high scope to use substandard raw ingredients to offer a cheaper version, FMCG goods are constantly in the line of fire. Allergies and developing certain medical conditions are the most common problems associated with counterfeiting in this sector and rightfully, consumers are demanding authenticity. With packaging and labelling laws becoming stricter, there is a greater demand for more information to be available to consumers. Besides, social media has escalated the need for manufacturers to be cautious in their packaging practices to avoid negative publicity. Further, with an evolving e-commerce economy, shorter shelf-life and changing patterns of consumer shopping the risk of grey marketing in this sector is only growing with top brand builders standing to lose 30% of business.
No wonder companies are focussing on several anti-counterfeit measures and are spending more money on them than ever before. Investing in growth requires fighting fakes as top priority and we at the Montage Group rely on innovation in packaging to safeguard our esteemed customers and the public at large. As Director of one of India’s largest flexible packaging group, I invest in a three-fold agenda when it comes to tackling this problem -
1. Complex Packaging – The key to addressing the issue of counterfeiting is by creating a hard-to-copy packaging design. Creating uniqueness for the package can guarantee no duplication. However, such identification comes with an extra cost that needs to be justified by the brand and accepted by the consumer.
2. Point of Distinction- Packaging should be created in a way that even a layman with minimal training can discriminate against fake products and identify genuineness. We patronise the use of holograms as a reliable tool for protection technology. Holography is a science that allows three-dimensional effects or images to be displayed in packaging, where we use holographic effects such as special embossed materials, with unique inks and superior printing techniques.
3. Self Destructiveness - Our holograms are designed and implemented in a way that provides 100% protection element if tried to tamper with our forcefully removed. We print with special inks and technology that ensured self-destruction of the hologram and a sign of caution for the consumer.
At Montage, we have an active and proficient anti-counterfeiting team that is constantly looking for solutions to address the problem. With years of experience in R&D and technology, we have created an unmatched space for ultimate protection against this malpractice. We liberally use nanotechnology, authentication, antitheft labels, laminations, Hot and Cold Stamping Foils, bar codes, smart tags, laser technology and artificial intelligence to create diverse and effective tools that can be employed, but identifying specific threats and implement the right smart solution for the task.
It’s better to be safe than sorry. Why wait for complaint or a big loss of business when you can take proactive steps to protect your business, brand and the health of your consumers. If left unchecked, fake FMCG goods pose a major negative domino effect on your business. Protect your brand now! The secret truly lies in packaging.