With around 6% of global branded revenue stolen by
counterfeiters, companies who take protective measures are not just acting for
the consumers benefit.
Brands have a unique market position: they can penetrate
third party sales channels through wholesale and licensing but still maintain a
direct consumer relationship. This relationship is crucial in the fight against
fakes.
To a consumer, the most important element of a brand is
trust. Fakes erode that trust.
Your brand fan trusts you to help them portray their desired
image and they trust that what you stand for is special. Think about your brand
as a very personal possession and take some protective steps in your processes.
If you need to justify this to yourself, see these steps as building an
internal insurance policy against future losses.
Know your supply chain.
Don't assume that everyone you deal with is only loyal to you. Check and double check activities around production and sampling.
Don't assume that everyone you deal with is only loyal to you. Check and double check activities around production and sampling.
Guard your labelling and packaging.
Who manufactures, stores or distributes your labels and packaging? Do you know how many were sent and used?
Who manufactures, stores or distributes your labels and packaging? Do you know how many were sent and used?
Establish product development agreements.
Ensure that suppliers who regularly work on new developments have automatic penalty clauses (enforceable commercially as events unfold rather than only after legal action) if styles that have not been released yet are found outside the process.
Ensure that suppliers who regularly work on new developments have automatic penalty clauses (enforceable commercially as events unfold rather than only after legal action) if styles that have not been released yet are found outside the process.
Use a PLM system or other method of tracking access to
your product details.
Create a logged audit trail, showing who accessed what and
when.
Evaluate interactive anti-counterfeit methods.
Can your consumer check before they buy? With mobile
internet access consumers can engage directly with a brand to interactively
verify authenticity, whilst leaving a useful location trail. You can see which
product was verified where. This opens up the opportunity to move in on
counterfeiters whilst building a relationship with your brand fans.
The market around us is continuously focusing on direct
relationships with consumers throughout the whole customer lifecycle. We are
told to not only obtain customers, but to create engaged brand fans. Consuming
is starting to mean something different in that respect.
In summary, do not leave brand security to chance. Jobs are
precious and protection should be in place. Just imagine handing 6% of your
revenue to criminals. Don't make it easy for counterfeiters to steal your brand
and your jobs.
By Ben Muis, Fashion Industry Consultant and creator of
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