THE LATEST report issued by Fortune Business Insights highlights the “huge” threat of e-commerce counterfeiting during the Coronavirus crisis, in turn driving demand for more investment in security devices. That’s the view of global trade body the International Hologram Manufacturers Association (IHMA).
The IHMA believes the report confirms concerns about e-commerce-based business as being ripe for exploitation during the pandemic by unscrupulous counterfeiters looking to trade in fake goods.
Research has continually indicated that counterfeit goods sold online can threaten lives as well as damage corporate reputations and investment in companies and their products.
The IHMA, whose members supply authentication and security holographic technologies to markets around the world, suggests that the report’s findings must act as a wake-up call to consumer goods manufacturers to step up the implementation of anti-counterfeiting measures in order to protect brands as part of their investment in packaging strategies being operated alongside e-commerce platforms.
The news comes as a study by a community media platform reveals that 20% of products sold on e-commerce sites are counterfeit.
Warnings issued
Europol and the European Union Intellectual Property Office have also issued recent warnings about counterfeit goods while the World Health Organisation has raised concerns about the sale of fake medicines linked to Coronavirus in developing countries in Africa and, indeed, other parts of the world where criminals are exploiting gaps in the market.
In the USA, almost 70% of consumers have expressed worries about COVID-19 driving online sales in counterfeit or sub-standard quality products.
The IHMA is advising brand owners and product manufacturers alike to be more proactive in tackling the threats, stepping up their plans for investment in advanced authentication and verification technologies to protect brands, profits and reputation.
Global supply channels
IHMA chair Dr Paul Dunn (pictured, right) explained: “Criminals are infiltrating global supply channels, deploying sophisticated online scams and counterfeiting measures to trick consumers and damage manufacturers during these difficult times for everyone. Furthermore, fake medicines and drugs can pose a real risk to people’s Health and Safety and even endanger lives.”
Dunn added: “Holograms can be effective in the front line fight against counterfeiters and fraudsters, protecting brands and profits. Those involved in the supply chain are reassured by their presence on products and duly recognise the security and financial benefits provided.”
The use of well-designed and properly deployed authentication solutions, as advocated by ISO 12931, enables examiners to verify the authenticity of a legitimate product, differentiating it from fake products coming from counterfeiting ‘hot spots’ in Asia and eastern Europe.
Even those that carry a ‘fake’ authentication feature can be distinguished from the genuine item if that item carries a carefully thought-out authentication solution.
*Copies of the Fortune Business Insights report can be found online at https://www.fortunebusinessinsights.com/anti-counterfeiting-packaging-market-102692
