​FMCG loses 30 percent of business revenue due to counterfeit

Franchise India Bureau February 04 2017 - 5 min read
​FMCG loses 30 percent of business revenue due to counterfeit
Products belonging to brands such as L'Oreal, Lakme, Revlon, Olay, Elle 18, Nivea, Fair & Lovely and several others were found in the premises. The growing incidents of counterfeiting have led to a demand for anti-counterfeit packaging (ACP).

Fast-moving consumer goods (FMCG) packaging remains the worst affected industry due to counterfeiting which accounts for over 30 percent of business revenues, according to industry reports.

The estimated value of counterfeit and smuggled goods of these grew from Rs 729 billion in 2012 to Rs 1,054 billion in 2014, according to a study by consultancy firm KPMG. A study by advisory firm KPMG and the Federation of Indian Chambers of Commerce and Industry (FICCI) indicates that sales of fake consumer goods are growing faster than the overall consumer products market.

Recently, The Food and Drug Administration (FDA) busted a racket and seized fake cosmetics products worth Rs 2.39 crore from a shop in Crawford market, Mumbai. Products belonging to brands such as L'Oreal, Lakme, Revlon, Olay, Elle 18, Nivea, Fair & Lovely and several others were found in the premises. The growing incidents of counterfeiting have led to a demand for anti-counterfeit packaging (ACP).

Authentication Solution Providers’ Association (ASPA) and Messe Frankfurt India (MFI) have joined hands to bring authentication solutions to the forefront. ASPA has already developed authentic solutions that are empowering consumers, brand owners and government authorities to easily identify genuine goods and products. According to a statement, they have developed a mobile and web application and an SMS facility that will enable brand owners and consumers to authenticate the originality of the products. More than five states in India are already using security holograms and other initiatives in the pipeline will be discussed at this forum.

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