What is counterfeiting of products?
Many small manufacturers produce products of well known and influential brands in lieu to increase their sales. Since they do not have any brand awareness of their own, they easily create these replicas to imitate and take advantage of the superior value of the product even if it is for a short period of time. Oftentimes, unaware customers purchase these fakes believing that they are authentic and cheap due to some special discount or offer. There are even cases wherein the customers deliberately purchase these low quality products to meet the status quo.
The replica products are usually created exactly as per the branded product, but small aspects like logo, name or even the design may be minutely altered to avoid any legal issues. Unless the customer is well informed about the brand, they usually do not notice these alterations and purchase the product believing that it is genuine. Although, most of these counterfeits are easily detectable by proper visual inspection, it is still an issue which every brand, at some point in their life span, has had to address.
Impact of counterfeiting on your brand
How does counterfeiting affect your brand, business, and profit? And what happens if a business fails to act against it?
Counterfeit brands offer inferior products of degraded quality to customers. An obvious and immediate impact of an unhappy customer is disloyalty and a negative impression of that brand. Affected customers may display the once bitten twice shy syndrome and choose to stay away from your brand forever. This may also lead to a loss of brand reputation, and the business might further lose customers. Zopefy can be your partner to fight against brand counterfeiting and providing IT solutions.
Counterfeit products directly take a dig at your revenue. Customers will be buying what they presume to be your brand products from fake product sellers. Therefore, you will miss out on both potential income and customers. And these potential customers may find the product unsatisfactory and in the end spread uninformed reviews about ‘your’ products and brands to other potential customers.
Counterfeiters divert customer traffic away from your brand and drive it to rogue sellers. They may even indulge in brandjacking by creating a replica of your brand website, mobile app, social media platforms, and other selling platforms, further damaging your brand value. After this, trying to retain and build a customer base may be hard.
What is the solution?
In the current day and age, there are many solutions that you can find to help tackle the issue of counterfeit trade. And these solutions vary depending on the type of product that your company sells. There are anti-tampering solutions for pharmaceutical companies and food industries to curb any adulteration or mispackaging problems and anti-counterfeiting technology available for products which are replicated rampantly in the market. Up until recently, all businesses could do related to this predicament was inform their customer base through their channels. But that is not always efficient as there are millions of customers and potential customers who may not get the memo in time.
So to curb this issue, many developers have established a one stop solution for counterfeiting problems by developing applications which allow the buyer to understand if the product is genuine or fake. This way, the business does not have to be actively involved in raising awareness as the customer can also verify the product through the app by simply scanning the barcode or the QR code available on the product.
But again, not all customers may download these applications because they may feel that it is not worth it. But Zopefy provides additional incentives to the users by offering special discounts. This way, even the business does not miss out on potential loyal customers, and the customers also feel satisfied and secure with their purchases.