OpSec Blog

 Insights on Anti-Counterfeiting & Brand Protection Solutions

10 Warning Signs Your Brand is at Risk

Posted by Lorri Veidenheimer on Sep 25, 2013 5:10:00 AM

Drowning_CopyrightIt is difficult to determine the full scale of your brand’s loss of value due to counterfeiting and market diversions prior to undertaking a thorough security solution evaluation, but there are a number of indicators that can help you gauge your vulnerability.

Any one of these ten factors may be sufficient to indicate that you are at risk.

 

1.  Are you contracting for manufacturing with factories that are not owned by your brand? These can pose a counterfeiting risk as two legitimate units may be delivered out the front door, while one illegitimate unit slips out the back door.

2.  Are you having any manufacturing done in China? China is consistently viewed as the largest single source of counterfeit manufacturing in the world.

3.  Are your sales decreasing while your competitors’ sales remain level? The individual members of any given market tend to rise and fall together. Unaccountable disparities may reflect the presence of illegitimate goods.

4.  Are you finding your product in unauthorized or unexpected market channels? If you didn’t place your product there, someone else did, and you should know who it is.

5.  Are you 100% confident that your licensees are accurately paying royalties on all licensed units? In the absence of comprehensive accounting of units, distribution and sales, and security seals it is relatively easy for un-labeled products to escape license fee scrutiny.

6.  Are customs officials giving your products increased scrutiny? Customs officials only manage to detect a tiny portion of the existing traffic in illegitimate goods. If your brand is showing up at all, it’s likely to be the tip of the iceberg.

7.  Have your warranty claims increased? And are the product returns your authorized product or counterfeits? Often times brand owners are first tipped off to the scope of the problem because of an increase in warranty claims of counterfeits. Make your consumer a part of the solution by getting them involved. Educate them on where to go to buy your legitimate product and offer tips on how to spot fakes.

8.  Are you seeing unauthorized or unaccountable price fluctuations across markets? These discrepancies can indicate diversions of your product from authorized channels, and improper cross-border trade.

9.  Are you finding your product in geographic markets that you had not authorized or anticipated? If you didn’t authorize or know about that traffic, it is worthwhile to determine who did.

10.  Are your competitors encountering counterfeit or improper distribution of their similar products? Similar products and brands tend to encounter similar market pressures, risks, and vulnerabilities. If your competitor is experiencing these problems, you probably are, also.

If you find yourself nodding yes to some of these answers, you should consider having a brand protection assessment, or reassess your current strategy. The counterfeiters love the brands that Do Nothing. Clients tell us over and over that brand protection pays off.

 


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1.    Are you contracting for manufacturing with factories that are not owned by your brand? These can pose a counterfeiting risk as two legitimate units may be delivered out the front door, while one illegitimate unit slips out the back door.

2.    Are you having any manufacturing done in China? China is consistently viewed as the largest single source of counterfeit manufacturing in the world.

3.    Are your sales decreasing while your competitors’ sales remain level? The individual members of any given market tend to rise and fall together. Unaccountable disparities may reflect the presence of illegitimate goods.

4.    Are you finding your product in unauthorized or unexpected market channels? If you didn’t place your product there, someone else did, and you should know who it is.

5.    Are you 100% confident that your licensees are accurately paying royalties on all licensed units? In the absence of comprehensive accounting of units, distribution and sales, and security seals it is relatively easy for un-labeled products to escape license fee scrutiny.

6.    Are customs officials giving your products increased scrutiny? Customs officials only manage to detect a tiny portion of the existing traffic in illegitimate goods. If your brand is showing up at all, it’s likely to be the tip of the iceberg.

7.    Have your warranty claims increased? And are the product returns your authorized product or counterfeits? Often times brand owners are first tipped off to the scope of the problem because of an increase in warranty claims of counterfeits. Make your consumer a part of the solution by getting them involved. Educate them on where to go to buy your legitimate product and offer tips on how to spot fakes.

8.    Are you seeing unauthorized or unaccountable price fluctuations across markets? These discrepancies can indicate diversions of your product from authorized channels, and improper cross-border trade.

9.    Are you finding your product in geographic markets that you had not authorized or anticipated? If you didn’t authorize or know about that traffic, it is worthwhile to determine who did.

10.    Are your competitors encountering counterfeit or improper distribution of their similar products? Similar products and brands tend to encounter similar market pressures, risks, and vulnerabilities. If your competitor is experiencing these problems, you probably are, also.

If you find yourself nodding yes to some of these answers, you should consider having a brand protection assessment, or reassess your current strategy. The counterfeiters love the brands that Do Nothing. Clients tell us over and over that protection pays off.

It is difficult to determine the full scale of your brand’s loss of value due to counterfeiting and market diversions prior to undertaking a thorough security solution evaluation, but there are a number of indicators that can help you gauge your vulnerability. Any one of these ten factors may be sufficient to indicate that you are at risk.
If you find yourself nodding yes to some of these answers, you should consider having a brand protection assessment, or reassess your current strategy. The counterfeiters love the brands that Do Nothing. Clients tell us over and over that protection pays off.

Topics: Gray Market Diversion, Counterfeiting, Product Authentication, Online Brand Protection, Intellectual Property, Brand Protection