Counterfeit in FMCG space
30% of products in FMCG space are counterfeit
According to FICCI CASCADE, about 20 percent of accidents on Indian roads are caused by falsified automotive parts, while 30 percent of FMCGitems sold are falsified, but 80 percent of customers still believe they are using legitimate goods. According to FICCI CASCADE, illegal products adversely affect Indian consumers, the industry body that works to address the issue of unlawful commercial activity.
FICCI CASCADE (Committee Against Smuggling and Counterfeiting Activities Destroying the Economy) further said that counterfeiting and illicit trade has also resulted in a huge loss of income for the exchange officer. "About 20 per cent of accidents on Indian roads are caused by falsified auto-products, and 30 per cent of goods sold in the FMCG sector are falsified and 80 per cent of consumers believe they are using genuine products," they said. The presence and operation of illegal markets such as trafficking and counterfeiting has been a persistent problem that has grown in size and severity, affecting businesses, governments, economies, and public health and safety, they added.
FICCI CASCADE reports estimate that the total government loss in India is Rs 392.39 billion due to illicit markets in just seven manufacturing sectors.
Causes of Counterfeiting
Quick sourcing and advances in technology have made it possible for counterfeiters to create small fake goods factories in the backyard. Although 30 percent of FMCG items sold are falsified, about 80 percent of customers are unable to differentiate between genuine and falsified products. Other reasons include higher prices, lack of awareness, lack of rigorous law and enforcement, cheaper alternatives, and a huge gap between supply and demand. Generally speaking, these products are sold at a few hot spots such as railway stations, flea or weekly markets, where consumers pay little attention and sellers are not easily traceable.
An industry expert says duplicate goods are having an impact on both producers and consumers in the FMCG market. While the producers are suffering from a brand image weakening and low sales, the customer is at risk of losing money and having a bad impact on their health. He also says dishonest producers are harmful to the national economy as well. The main reason behind this is that in a host of other criminal activities, they avoid taxes and lead to an increase. Falsified products often add an unnecessary strain on the health care system.
The statistics are just proof that what we are having, drinking and using is all counterfeit product. We need a real solution to this issue, SCoT labels are a proprietary technology that enables the protection of these FMCG goods against counterfeit product ensuring genuinely of the product, protection for a brand as well as security for the consumer. SCoT labels are as a easy to implement as a bar code or QR code but with far better technology and security .
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