Owners of brands and products worldwide suffer billion-dollar losses due to the low-risk, high-return industry of counterfeiting. It’s a loss that’s not just about making money. Your brand’s reputation will be irreparably harmed if a phoney item is sold as real and can even be fatal, as has happened with fake alcohol and drugs.

While firm statistics for South Africa are not readily available, news reports indicate counterfeiting is a huge problem in Africa, exacerbated by the COVID-19 lockdown. A pan-African police operation, jointly coordinated by INTERPOL and AFRIPOL at the end of 2021, identified hundreds of suspects, which resulted in seizures of more than 12 million illicit health products¹. In addition, West African operations revealed the use of counterfeit COVID-19 vaccination certificates in several countries.

The Consumer Goods Council of South Africa (CGCSA) states that up to 10% of the South African economy may be lost through counterfeiting. Consumers are at serious risk due to this counterfeiting, making it more challenging for local, legitimate producers to remain competitive. It also denies governments tax income that could help fund the delivery of critical services.²

It is also anticipated that more counterfeit product sellers will shift their sourcing activities in-house and start their manufacturing businesses due to the increasing oil and commodity prices brought on by the invasion of Ukraine.³

According to the World Health Organization, counterfeit drugs are the world’s most lucrative counterfeit goods, with a global market worth approximately $200bn, and Africa accounts for around 42% of the world’s cases.⁴

China and other foreign nations account for a large share of the fake goods circulated in South Africa. At the numerous ports of entry, South African Customs and Border Police are fairly proficient at finding and seizing containers and small consignments of counterfeit products, although some do slip through unnoticed.

The logistical gaps in the movement of commodities might be exploited by individuals dealing in counterfeit goods because there are so many shared border posts and access to neighbouring nations. For instance, many containers and airfreight consignments are imported via transhipment, purportedly for the neighbouring states, but they wind up in the South African market. Additionally, containers are smuggled back from neighbouring nations after being round-tripped by rail from seaports.⁵

As an example of the worldwide scale of counterfeiting, German Customs reported a new high for the seizure of counterfeit goods in 2019: The goods’ combined market worth was 238.87 million Euros. Products like clothing and electronics were significantly impacted.6 But other parts were also not spared. Many more fake products were found, including food, cosmetics, tools and pharmaceuticals. Experts concur that, despite a record number of discoveries, this is simply the tip of the iceberg, and counterfeiters continue to be able to operate covertly on a massive scale globally.

In short, it is essential brands protect themselves from counterfeiting. It’s not just a case of income lost due to imitation goods being sold; it is a danger to their reputation, can cost a fortune in fake warranty claims, and lays brands open to legal claims. Synchron has solutions to protect your brands and is dedicated to keeping illegal goods out of the legitimate supply chain. Businesses establish their brands by offering superior goods and services that set them apart from the competition. A key investment is building a great brand. Unprotected, it leaves the business and its customers open to fraud, illegal behaviour, and safety risks.

A combination of counterfeit goods, commercial diversion of goods, product theft, fabrication of trade documents or packaging, and other violations of legal trade all need to be addressed when ensuring brand protection.

Synchron’s solutions for brand protection

Synchron represents KURZ in South and East Africa. Promising functionality and aesthetic protection for brands, KURZ is a pioneer in fusing decoration, security, function, and interactivity.

KURZ Banknote Security

TRUSTSEAL® Protect is a well-known brand name for visual security components. The security seals combine design and protection for labels, packaging, and more. No matter how the technology is used—to mark documents, seal packages, label fabrics, or apply tickets—TRUSTSEAL® Protect is extraordinarily counterfeit- and tamper-proof; any attempts to conceal manipulation are visible to the unaided eye.

Advantages include custom brand design, proprietary technology, visible and invisible security features, application by means of hot stamping or cold foil transfer, and TRUSTCODE authentication is fast and easy via smartphone.

MultiColor® security feature or partial metallisation enables eye-catching designs that offer security simultaneously.

Linking visual effects to information technology opens new branding and market analysis opportunities – genuine added value for you and your customers.

Brand protection is becoming ever more critical. As a leading provider of brand security, we offer you a quick and easy way to identify via smartphone.

Contact SYNCHRON for more information on protecting your brand from fakes, authenticating your products, providing attractive packaging with built-in security features, issuing secure identification cards, printing event tickets with piracy protection, and a variety of security labels.

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