German firm Atlantic Zeiser, who specialise in anti-counterfeiting products, recently displayed its Track & Trace module at Emballage, and the company reported big interest in the fight against counterfeiting at the show.
A 2009 study by the Organisation for Economic Co-operation and Development (OECD) estimated that pirate products worldwide cost companies €184bn – a 53 per cent rise on 2007’s figure.
Premium brands are sought after
Globally renowned premium brands in consumer markets, particularly cosmetics and medicines, are the most lucrative items for counterfeiters, according to managing director of Atlantic Zeiser France, Eric Penne.
“The cosmetic industry must be able to prove the authenticity of their product in case of health problems caused by the product to an end user who thinks they have bought a real branded product,” he told CosmeticsDesign-Europe.com.
Ralf Hipp, vice president Digital Printing and Coding Solutions at Atlantic Zeiser, commented: “Track & Trace hands the power back to manufacturers and brand owners. Its seamless product tracking enables them to strike a meaningful blow against counterfeiters.”
How does Track & Trace work?
Users can include all standard product tracking codes on the packaging. The codes include GS1, all types of numeric codes, and 1-D and 2-D barcodes, which are used to check the legitimacy of the packaging and product online, and allow customers to track the product throughout the whole supply chain, according to Penne.
The Track & Trace module has cameras that automatically read and verify the selected layout and check the digits.
If the check code does not match the reference data, the module rejects the packaging following the check.
Penne said the idea was to avoid diversion of the product through its supply and sales channels, so that products are not sold through unauthorised retailers or personnel, thus maintaining profits and brand image.
Packaging is the focal medium
According to Atlantic Zeiser, this has made packaging a focal medium in the battle against counterfeiting and copycat products.
Packages of any type offer the option of containing test characteristics that guarantee seamless product tracking and supervision.
This involves using the right procedures and applying test codes which, for their part, cannot be counterfeited or cannot be identified quickly as counterfeits.
The heart of counterfeiting
Atlantic Zeiser highlighted the need for such solutions as there is a growing consumer tendency to buy branded products and pay less attention to the actual product.
In cosmetic products, this is aggravated by one other dangerous component: the composition of the relevant preparation or product.
The exclusion of production quality combined with the use of cheaper and inferior raw materials facilitates inexpensive prices with a nonetheless significant profit margin.