Written by Stephanie Chan, June 1, 2020
With increased online shopping, the threat of counterfeit products is inevitable. Consumers paying brand name prices hate counterfeit goods and so do retailers. A counterfeit product basically equals a low-quality product which hurts retailer brand sales, including damaging their reputations. Besides damaged reputation and losing trust from their customers, brands also suffer directly in loss of revenue when customers buy fake product instead of the real ones. It may even put lives at steak or threaten danger if a counterfeit product is that of the medical, automotive, or electronic categories. Counterfeiting is not only a problem for big brands and retailers, but even private label products are suffering from it. Even Amazon private brands are being hijacked by other companies to get good reviews and ratings while selling low quality products.
Retailers have a few ways to battle against counterfeit goods, including educating their customers, actively seeking out counterfeit- good producers, and leveraging blockchains to improve transparency and authenticity in the supply chain.
Educate Your Customers
Education is one of the most effective ways in fighting against counterfeit goods because raising public awareness automatically prevents many from falling into the traps of purchasing fake goods. Teaching customers to identify fake goods from the real ones will also improve the reporting system by expediting the process for retailers to crack down on fake goods. For those who willingly purchase counterfeit-goods, it is important to let them know the danger and consequences of buying a fake product and the effects it could have on society, and the environment. Not only will education aid in the battle against counterfeit goods, it will make your customers better in general, which is always good for the brand.
Actively Seek Out Counterfeit-Good Producers
Retailers should implement AI-Solutions (artificial intelligence-solutions) to help them detect other versions of their products that reside online. They should pay attention to false advertising, black hat SEO, and spam that may divert customers to fake websites rather than real ones. In order to crack down on counterfeit products, retailers need to take matters into their own hands and actively seek out those who forge their products. Amazon is at the forefront of this battle as they ramp up counterfeit reporting to the law enforcement once they have gathered enough data on the counterfeit goods. Others should follow their footsteps as well.
Leveraging Blockchain
Blockchain is known for its security and transparency for its processing. Apparently, it is also very helpful in spotting fake products by increasing the transparency of the supply chain. This technology combines the power of IoT, AI (artificial intelligence), and machine learning to actively prevent fraudulent transactions through tracing product tags to its origin, comparing products with its signature, as well as retrieving proof of purchase and transaction details. This process happens in real-time to make sure brands can detect any suspicious activities and act on it in the shortest amount of time. In order for blockchain security to work, however, everyone in the supply chain needs to participate, and they have more than enough reasons to do so.
For retailers, making sure they source from trustworthy and high quality of suppliers is the first line of defense against counterfeit goods. At TradeBeyond we only allow verified suppliers who pass the pre-screening verification to work with the largest retail clients and give them the best and most productive sourcing experience. Find out more on information at www.tradebeyond.com.
Written by Stephanie Chan, June 1, 2020
