5 Ways Counterfeiting is Killing Your Profit

Counterfeit is the murderer of revenue of the business houses and firms. Counterfeiting causes destructive effects throughout the lifecycle of the original product.

Counterfeiting is a well-established practice that is extremely difficult to erode. With the extreme competition taking over the market, there is a simultaneous growth of piracy. Additionally, with the continuous advancement in technology, counterfeiting is becoming difficult to break.

Unless you design some anti-counterfeiting solutions, your brand is bound to suffer from huge losses. Losses in terms of brand image and its integrity, and thus the sales revenue. 

Here are the five ways in which counterfeiting is eating up your current as well as future sources of revenue:

• Brand Erosion:

Pirate products are endemic in every industry today. Brand erosion is the fall in your product’s brand perception which customers usually hold. Once the customer buys a counterfeit product and suffers from a bad experience, the next steps are painful. The trust is easily ripped off, leaving customers unsatisfied and furious with the counterfeit product’s performance. Due to negative customer experience and unsatisfied demands, the positive crafted perception gets eroded. 

As an effective brand, you have to develop an intellectual method to easily track and trace counterfeits along your supply chain. QR-code technology is the best solution to grab any counterfeit product along your supply chain. 

• Brand Authenticity:

If there are huge counterfeiters of your brand’s product line in the market, your brand is bound to lose its authenticity. Profits depend upon sales, and sales will uplift only when consumers are happy with your service. Customers find your brand less desirable when they feel your brand is not faithful in terms of quality products and services.

This is the result of the poor quality performance of your brand’s fakes and pirate units in the market. Losing their faith means they will probably shift to your competitor or a more authentic brand. And thus, you lose your customers and also your revenue. 

Cunning schemes of counterfeiters also affect the distributors and your partners.

Leverage your anti-counterfeit designs by adopting QR-Code solutions to put an end to your brand’s pirates from the market.

• Loss of Sales Revenue:

Continuous damage to customers’ loyalty and confidence by fake products, affects your brand’s cash inflow. When customers unknowingly buy your brand’s counterfeits and experience poor quality, they assume your brand to be bad in service.  The positive perception that customers earlier held breaks in a few moments. This further leads to the downward stream of sales revenue. If you fail to combat the pirate products, you lose your profits from intended sales. Customers ultimately shift to an alternative brand and start using its products. 

Start using the QR Codes for your products to prevent your products’ clones in the market.

• Increased Overhead Costs

Companies tend to spend huge amounts to investigate their brands’ counterfeits. On one side it is directly killing your profits and on the other hand, brands have to incur additional overhead costs. Beginning from research, investigation, litigation, and destruction of counterfeit, huge expenses have to be incurred. 

All these expenses that arise later in the lifecycle of the product can be rather be finished at the earliest stages. The solution is Anti-Counterfeit technology and the most effective one being, the QR-codes. QR-Codes ensure complete protection against duplicity.

• High-Soaring Warranty Costs:

Brands don’t realize that 30% of the products returned to them might be their brand’s fakes and not their originals. Fakes are often well designed and shaped that many of the technologies also fail to detect. This in turn causes high costs in terms of time and money.

And unknowingly, brands have to bear these costs which is a big cut on their overall profits.

You should ensure that each of your company’s products is secured with a unique QR code so that any duplicity can be prevented.

How to procure your profits?

To prevent all sorts of barriers to your overall profits, Anti-Counterfeit solutions need to be adopted. The best performing and the positive result-oriented anti-counterfeiting tool is the QR Code technology and its current server is Genefied.

GenuineMark is Genefied’s QR-Code based technology solution which ensures complete control over your supply chain. It designs your anti-counterfeit solution to provide your brand the full-proof safety against duplicates and fakes.

Regain your market share with the QR-code-based services expert, Genefied!

Call us now!