According to The Guardian, the trade in counterfeit goods is worth $600bn per year, and that is why having a system for verifying authenticity is so important. After all, that money ends up in the hands of crooks instead of corporate coffers, and this is not good for brands.
However, product authentication is more than just a form of brand protection; it is also intrinsic to increasing customer engagement.
Authenticity and brand protection
Authenticity and brand protection are two issues that are inextricably linked.
In a world where counterfeit products are rampant, it is essential for companies to have a system in place to verify the authenticity of their products. Not only does this protect the company's bottom line, but it also protects the customer from being duped into buying a fake product. This is particularly true for luxury and second-hand products, where authenticity can be difficult to determine. By having a system in place to verify authenticity, companies can ensure that their customers are getting what they paid for.
Not to toot our own horn, but a good example of how verifying a product's authenticity helps brand protection is the authenticity verification service powered by Certilogo.
Our system allows customers to check that the products they are about to buy are authentic. All they have to do is simply scan the tag on the product label with their smartphone (QR code, NFC, CLG etc) to start the application and receive a response in a couple of seconds.
But authentication systems work also for B2B.
One well-publicised example is the case of LVMH and Alibaba. In 2016, LVMH accused Alibaba of doing too little to stop the sale of counterfeit products on its platforms. In response, Alibaba set up a system to verify the authenticity of products sold on its platform. The system, called "Alibaba IP Protection Platform", uses big data and machine learning to identify and remove fake products. It also provides a channel for brands to report counterfeit products. Since the launch of the platform, the number of complaints about counterfeit products on Alibaba's platforms has decreased by 70%.