ORIGIFY by Bosch

Constantly changing fashion trends and increased consumerism are leading to immense growth in the footwear industry. Regrettably, high-profit margins, a variety of sales channels, and increasing demands make this market attractive to illegal sellers. Counterfeiting causes a direct effect on sales, brand image, and brand value of manufacturers. Due to fears of fake products, consumers devalue products and lose appreciation for the products original value. Retailers also face problems as returned products are sometimes counterfeit. On the other hand, manufacturers face problems with third shift manufacturing, also referred to as factory overruns, where fake products are manufactured in the same warehouse as the original products. This has corrupted production processes and the supply chains. Different manufacturers often use similar authentication methods like barcodes, RFID tags, or serial numbers for all ranges of products which makes it easier for counterfeiters to tamper them.

Many consumers aspire to own branded leather goods. As the industry grows again and profit margins are high, counterfeiters target this industry. Counterfeiters design the products exactly like the original pieces. The very small differences in products are rarely noticed by the consumer. It is often difficult to distinguish between two seemingly identical goods without having any expertise or research on the product material or design. The production and distribution of luxurious leather goods is complex and utilizes various sales channels making it even more difficult to track every delivered or purchased product. Brands try to constantly use various updated authentication methods like serial numbers, RFID, and NFC tags. However, manufacturers often incur high costs for the initial setup of the technology and software that maintains the data.

Approximately one in every 10 IT products sold worldwide may be counterfeit. The high intellectual property intensity of the products and the rapid growth of the industry makes the electronics industry vulnerable to counterfeiters. Since IT products are frequently bought through online platforms, where they cannot be physically examined, consumers can only determine that products are counterfeited once they receive them. It is observed that counterfeiters meddle with the supply chain and fake products are being sold by authorized retailers leading to more unwitting counterfeit purchases. Electronics like memory cards, headphones, batteries, microphones, and electronic circuits are some of the most affected product categories. Manufacturers use various methods to protect their brand like certificates, tags, serial numbers, holograms, QR Codes, and NFCs, but these methods have limitations and can be manipulated or copied by the counterfeiters.

Legal companies in the EU for watches and jewelry lose around 13.5 % of their annual turnover due to counterfeiting. The rising demand for products particularly in Asia, in booming vintage markets and from a growing digital clientele is making the watches and jewelry market and especially the premium segment susceptible to counterfeiting. Counterfeiters are increasingly improving their ability to accurately reverse engineer production processes with special software and digital technologies. This makes it difficult for both consumers and professional experts to identify the original product. Such practices compel brands and manufacturers to use highly secured authentication methods. Certain solutions offer a variety of product and packaging identifiers and additional warranty cards. Nonetheless, these features such as tags, branded boxes, serial numbers, and the associated authentication certificates can be copied. New technologies such as RFID and NFC tags can be difficult to attach to smaller products. This makes it difficult for manufacturers to choose a suitable verification process.

Globalization and multiple sales channels are increasing the supply and variety of prescribed medication and medical devices worldwide. With pharmaceutical products being readily available both online and offline, it is necessary for medication to be authenticated and authorized. Although the industry is closely regulated, it still observes illicit practices. Counterfeiting of medical products through online sales is increasing and causing risks to consumers and high liability costs to the manufacturers. On the other hand, the industry also observes the overuse of certain medical devices. Since the products are often authenticated through DMC codes, the sterilization process on the devices tampers the code making it difficult to track the frequency of usage over time. Sometimes manufacturers also find it difficult to mark smaller parts on their devices.

An aircraft is made of several million parts, while a few spared, some are subjected to counterfeiting. Generally, the high-value parts of aerospace industry are counterfeited as they promise high margins. Not just electrical components such as switches, circuit boards, microchips, and power supply parts such as batteries and accumulators are counterfeited, but also lighting, controls, cables, and motors, as well as the associated paperwork. The complex and global supply chains and unregulated networks of dealers and repair shops, make it easier for defrauders to introduce counterfeits into the supply chain. The use of parts beyond their shelf life, tampering with smaller parts, and grey imports not only lead to financial losses, but also jeopardize the brand image and even put human lives at risk. This makes it crucial to protect the industry from the parts that do not meet flight standards. Electronic items are often marked with small barcode labels, serial numbers & batch codes which might be scratched or removed and replaced with fake marks by the counterfeiters. A hidden security feature could provide better protection for aerospace parts.
Know more about the Bosch Aviation Company and other solutions here.

Children nowadays are often surrounded by digital gratification which has led to more demanding and multi-functional games and toys for every age group. The large variety of games, immense demand, complex supply structure and the high profit margins have made this industry prone to counterfeiting. 11% of all trade in these products are pirated or fake. Pirated games and gaming consoles are heavily sold. Plastic toys, robots, and skateboards are few other products that are counterfeited often. Counterfeiters manufacture similar games using lower quality of materials and frequently duplicate the logo of the brands on it. Manufacturers currently use various methods to verify their products. Sometimes taking down fake digital sales channels is not effective as the counterfeiters still succeed in selling fake games online and offline. On the other hand, the physical authentication methods used like barcodes, serial numbers, and RFID codes, can be copied, or manipulated and need to be constantly updated with newer technology.

With the automotive industry evolving so rapidly particularly in technology, it has become imperative to authenticate automotive parts. The high margins for counterfeited products and increasing range of automotive parts make this industry appealing to illegal sellers. Especially in the aftermarket, counterfeiting is frequently observed. While the electric systems are secured with high-end software and cloud systems, it is crucial to authenticate the physical parts. Automotive parts like tires, brake pads, airbags, batteries, and other routine maintenance products are those heavily affected by counterfeiters. However, the methods presently used such as barcodes, serial numbers, trademarks, and holograms to authenticate parts can be tampered with or copied onto the counterfeited parts. Due to complex supply chain structures, it is currently also time-consuming to authenticate products at every level.

In response to the surging consumer demand for audio products, numerous brands are continuously expanding their market presence. However, this growth has also led to an increase in counterfeit manufacturers exploiting the brand's reputation to produce and distribute fake products through various channels. This issue is particularly prevalent in audio products like headphones, microphones, cables, effects pedals, and signal processing equipment. Counterfeit products resemble the genuine ones, making it difficult for consumers to identify the fakes, also in terms of sound quality.

The complexity further intensifies as brands often have multiple product catalogs with various agents. This multiplicity makes it challenging to track the delivery and purchase of each product, thereby exposing them to the risks of cross-regional sales and unauthorized parallel imports. To combat counterfeiting and protect their brands, companies are continually exploring newer authentication methods such as serial numbers, QR codes, and anti-counterfeiting code labels. Despite these efforts, existing authentication methods may prove inadequate, as counterfeiters can replicate them, compromising their effectiveness and security.

In today's music industry, a vast array of diverse music is constantly being created, with artists drawing inspiration from unique instruments. However, this creative process faces a significant challenge due to the rise of counterfeit manufacturers producing low-quality musical instruments. Musicians find their artistic work compromised by these inferior instruments.

To tackle this issue, manufacturers resort to adding physical marks on their instruments, such as specific lettering sizes, corner curvatures, intricate carvings, or discreet markings that are hard to detect. Nonetheless, identifying the authenticity of an instrument solely based on these physical markings is time-consuming and labor-intensive, yielding less accurate results, especially when it comes to identifying closely resembling counterfeit products.

Traditional methods like S/N codes and serial numbers are also not sufficient for building complete consumer trust, as they are easily copied by counterfeiters. Therefore, there is a pressing need for robust anti-counterfeiting technology that instills confidence in consumers. Musical instruments are inherently diverse, and each model's distinct characteristics demand stringent anti-counterfeiting measures.

Product counterfeiting is one of the fastest growing problems worldwide. Especially manufacturers of high-quality building materials and tools complain about the spread of counterfeits & inferior materials. This reduces their competitiveness. Estimates say that 5-7% of all building components worldwide are counterfeit. About 30% of construction companies have already been confronted with such counterfeits in their daily project work. The use of counterfeit materials can lead to delays, extra work & even fatal consequences. Therefore, ensuring material quality is essential. Especially large construction projects suffer from counterfeit or defective goods such as valves, pipes, electrical wires & screws. Yet not all companies take the necessary measures to mitigate these risks. The internet with its low prices & direct delivery is driving the distribution of counterfeit products. Supply shortages due to current crises reinforce these developments. As a result, products & materials are often sourced from abroad that do not meet the stricter European standards and norms.

The food and beverage industry is frequently targeted by counterfeiters due to its widespread popularity and potential for significant profits. Counterfeiters target food and beverages because they can easily replicate packaging and labels, making it difficult for consumers to distinguish between genuine and fake products. Additionally, the complex global supply chain of food products makes it challenging to monitor and regulate, providing ample opportunities for counterfeiters to infiltrate the market. From luxury foods like wine and olive oil to everyday staples like spices and baby formula, no segment of the food industry is immune to counterfeiting. This has forced brands and manufacturers to implement highly secure authentication methods. To combat counterfeit food and beverages manufacturers are now going way beyond labels and implementing various solutions such as unique product packaging or QR code. While QR codes and unique product packaging are employed as solutions to combat food and beverage counterfeiting, they are not always successful. Implementing these measures can significantly increase production costs, and any drastic changes in packaging risk eroding customer brand recognition and loyalty. Therefore, while these solutions have potential, they are not always the most effective or feasible options for manufacturers.