Say No to Knock Offs
Counterfeiting is a devastating problem, and one that will never be fully eradicated. But, just how much of an impact is it actually having on the marketplace? Check out these startling statistics estimating the value of counterfeit goods worldwide, which was presented to HP Indigo press owners during the February 2007 Dscoop Digital Solutions Cooperative (www.dscoop.org) at Saddlebrook Resort in Tampa, Fla.:
• Automotive and aircraft parts—$12B
• IT and software—$10.9B
• Music and film—$5B
• Cosmetics and toiletries—7 percent to 10 percent
of the worldwide market
Overall, counterfeiting has put a $250 billion dent in the United States’ economy, and has resulted in the loss of hundreds of thousands of jobs. For those fortunate few thus far unscathed by the growing problem, be warned that if competitors are having problems with counterfeiting, chances are excellent you will be targeted next. And, the damage to a company is not limited to lost revenue, but diminished consumer confidence and even liability issues.
Most brand owners are left scrambling for cost-effective solutions to secure and validate their products. Industry experts recommend leveraging many different deterrents, such as variable security data printing on packaging and labeling and tamper-evident substrates and adhesives.
At Labels West, Woodinville, Wash., director of sales and marketing Lance Wilson said the company continues to experience a growing demand for security label products. “We have seen more interest in combining variable data with special security, destructible materials and the use of black light-invisible inks,” he reported. “We have also seen activity with the need for micro-text on labels, which would be run on our HP Indigo digital label press.” Markets driving the majority of the demand for security labeling at Labels West are the pharmaceutical, software, personal care and wine industries. “With some projects, continued Wilson, “it’s a situation of proving authenticity [as opposed to] showing that something was tampered with.”
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