A Case Study: A Brand Uses Laser Technology to Fight Counterfeits
The company was able to solve the problem by introducing laser holography as an anti-counterfeiting measure.The event provided an opportunity for brands to learn about the process of introducing the technology, the methods of consumer verification, and the effectiveness of the anti-counterfeiting system.
How can brand owners deal with the flood of counterfeits?
Last summer, the marketing team of a local cosmetics brand discovered a headache-inducing problem: Suddenly, a number of low-priced knock-off products appeared on e-commerce platforms, with packaging that was nearly indistinguishable from the real thing.Consumers are increasingly complaining about counterfeit goods, and the company's reputation is sliding.Manager Chang, the company's director of operations, recalls: "The team met for several nights to discuss the problem, and everyone agreed that we had to find a solution that would make it easy for consumers to identify our products while making it difficult for counterfeiters to copy.The only thing that can be done is to try to prevent them from getting in the first place.
Why did you choose to use laser technology to prevent counterfeiting?
After much research, they finally settled on a laser-based anti-counterfeiting technology.This technology has three major advantages: 1.
The three-dimensional effect can be seen with the naked eye.
At different angles, the holographic labels produce dynamic color changes. For example, the brand logo may change from gold to purple. Ordinary printing equipment cannot reproduce this three-dimensional effect.
Low cost, high barriers.
The cost of a single label is less than NT $ 0.3, but counterfeiters would have to invest over NT $ 1 million to produce a machine of equivalent precision.
The convenience of instant verification.
Consumers can just shine their mobile phone’s flash on the label and see the microtext, without needing to download an app or scan a code. The barrier to verification is lowered.
The four steps to implementation.
Step 1: Design a custom anti-counterfeiting label.
In cooperation with a technology supplier, the company designed a two-layer label. The top layer features a dynamic laser image, and the bottom layer contains a hidden snowflake pattern unique to the brand.The factory also has a separate, closed-off line for labeling, to prevent the labels from getting into the wrong hands.
Step Two: Build a verification system.
On its official website, the company has set up a “ counterfeit prevention ” area where consumers can enter the 16-digit code on the label and the system will match the code with its database, displaying the production batch number and logistics information.
Step 3: Educate consumers.
On short-video platforms, they posted tutorials to teach people how to distinguish between real and fake labels.Statistics show that the number of visitors to the website during the event was three times greater than usual.
Step four: The united front.
The platform then used the data to screen out 23,000 counterfeit products, and some of the stores selling fakes have been permanently shut down.
The real effect after six months.
The latest figures show a 76 % drop in the number of complaints about counterfeit goods, and an 18 % increase in repeat purchases of genuine items.What ’ s even more interesting is that many consumers have taken to social media to show off the authentication process, unexpectedly igniting a discussion of the topic of “ taking a picture to verify authenticity. ”Manager Chang sighs, "Even distributors are telling us that the rate at which we get our new products on the shelves is twice as fast as in previous years.The Chinese are a very hard-working people.
What advice would you give to other brands?
If you are also suffering from the headache of counterfeits, then pay attention to the following three points.
1. Anti-counterfeiting labels should be "easy to see, easy to test" --don't make them too complicated.
2. Reserve space for future upgrades. For example, the encryption layer used in this project is compatible with future upgrades.
3. It takes a village to fight fakes: Platforms, consumers, and regulators are all needed.