Brands use security labels to verify the authenticity and integrity of their products across the supply chain, from manufacturing to consumers. They are key to ensuring that products are genuine and haven’t been tampered with before use.
Threats from the counterfeit market are widespread and difficult for brands to avoid. 50 out of 96 product categories are now affected by fakes, according to the Organisation for Economic Co-operation and Development, and fakes account for over 2% of global trade.
Your customers want to know whether they have a dupe or a tainted product in their hands, and your brand is inextricably linked to their experience — setting expectations that start with the label you choose.
A strong brand tells customers what to expect from a product. But problems arise when others attempt to co-opt your company’s hard-won reputation by applying your brand (or elements of it) to their products.
Counterfeiting and gray market diversion are growing threats across nearly every product category. Security labels give manufacturers a powerful, cost-effective tool to verify product authenticity, protect consumers, and maintain brand integrity throughout the supply chain.
Key Takeaways:
Particularly in a challenging global economy, and one where technology like 3D printing and AI can deceive consumers more than ever, there is a growing need for brand protection. Taking steps to mitigate counterfeiting ensures that product revenue goes to legitimate players, while shielding consumers from harm and the impacts of deception.
Experienced companies have always jealously guarded their brands. But many aspects of the modern marketplace also present challenges for brand protection:
Counterfeit goods may cost the global economy as much as a quarter-trillion dollars. And it’s not just handbags and fragrances that are being copied: Makers of food and beverages, electronics, and — perhaps most troublingly — pharmaceuticals are increasingly falling victim to counterfeiters. Each time a counterfeit product is sold, the original company’s reputation erodes, and its brand weakens just a little bit more.
Sales on the so-called “gray market” can also lessen a company’s trustworthiness and revenue. Gray market sales occur when products are diverted from their intended distribution channels. For example, products bound for South America may be redirected to North America, where an unauthorized reseller can undercut authorized resellers on price.
Gray market activity can hurt a company’s brand because it prevents the company from controlling where and to whom its products are sold. When a product is sold into an unintended market, warranties, usage instructions, and regulatory compliance can be jeopardized.
Your brand’s reputation touches every part of your operation, and the efficacy of your security label is no exception. A comprehensive brand protection plan can include tactics like trademarking and patenting. As label printing experts, we’ll focus on the ways you can use security label technology to protect your brand, especially from counterfeiting and the gray market.
Security labels draw on an arsenal of hidden and obvious features to help brands uphold the integrity of their products throughout the supply chain, including:
They also help customers verify the authenticity of their purchases.
The security label you choose should align with the reasons you’re working to protect your brand in the first place. For instance, you may not need tamper-evident features for products where the chain of custody is trusted, like a pill bottle that goes straight from a pharmacist to a patient.
A “kitchen sink” approach may be reassuring, but as with every business decision, you must balance cost with genuine need. Many technologies can serve multiple purposes; an expert in label printing and brand protection can help you choose security features that fit your budget while countering those who would subvert your brand.
For a deeper understanding, here’s what your brand protection expert might recommend and what they mean:
Your brand label is one of the clearest ways you can own your brand by showcasing your authenticity and throwing off copycats. Distinguish your real product from the rest in ways that align with your brand, adding complexity like holographics — or more subtle features, like a unique varnish — can achieve similar brand protection results.
If your company has been around a while, your brand may be the result of years of customer experiences, marketing experiments, and product improvements. If you’re launching a new product, your brand may be the thing that sets you apart from competitors. Either way, the strength of your brand is critical to your company’s success.
The stakes for protecting your brand have never been higher. Get a security label recommendation based on your product environment by talking to an expert today.