Smart product labels as effective brand protection

What do we think about counterfeit goods?

At the beginning of 2024, the European Union Intellectual Property Office (EUIPO) presented the results of a study on citizens’ perceptions of intellectual property:

80% of Europeans agree that counterfeit goods support criminal organizations and ruin businesses and jobs. Two out of three also believe that counterfeiting poses a threat to health, safety and the environment

However, a third consider it acceptable to buy counterfeit goods if the price of the genuine product is too high. Among young people, 50% agree with this statement

Uncertainty: 27% of German consumers stated that they were not sure whether a product was genuine or not, while 10% stated that they had knowingly bought counterfeit goods.

When counterfeit products are bought, whether clothing, cosmetics, toys or other goods, it is not only the brands of the original products that suffer. In the three sectors mentioned above alone, counterfeit products in Europe cost around 16 billion euros and around 200,000 jobs a year.

So how can brands protect themselves against counterfeit products?

An extensive range of different product labelling options can help brands protect their intellectual property. Depending on requirements, analog and digital solutions can be used to protect products against counterfeiting.

QR codes and NFC chips: Security in a double pack

One possibility is the combination of QR codes and NFC technology, which offers an innovative approach to effectively protect products. By integrating a simple QR code in conjunction with an NFC chip, the manufacturer creates a powerful security measure that is extremely beneficial for both the producer and the end consumer. By scanning the QR code and NFC chip of a product (e.g. a QR code on the certificate of authenticity of a designer bag and an NFC chip integrated in the bag), an immediate check is made in the backend that the two elements match, reliably confirming the authenticity of the product. Consumers can determine in just a few seconds whether they are holding an original product in their hands or have possibly come across a counterfeit. This clear and simple process not only provides a sense of security when purchasing, but also significantly increases customer confidence in your brand.

Hologram labels offer brand protection with style

Holograms are not only a fascinating visual element, but also an important tool for brand protection. They not only give products an appealing aesthetic, but also signal authenticity and value. Different security features such as the flip and zoom effect can be used to ensure that products are unmistakable. The flip effect, in which different image levels become visible depending on the viewing angle, attracts the consumer’s attention and makes the product unique. The guilloches with their curved patterns and fine lines are not only visually appealing, but also make it difficult for counterfeiters to imitate them. In addition, holograms act as a seal of authenticity, copy protection and guarantee seal, giving them a central role in the entire product life cycle.

UV yarns – invisible safety for consumers

UV yarns represent an impressive innovation that not only revolutionizes the identification of original products, but also creates a unique experience for consumers. These special yarns allow clues to be hidden in the label that are only fully revealed by black light or UV light. This creates a discreet way for consumers to verify the authenticity of a product. Although not every consumer has constant access to a UV light source, the message remains clear: this technology protects against counterfeiting and promotes a deep awareness of authenticity and originality. UV yarns are therefore not only a practical tool for ensuring quality, but also an impressive experience that arouses curiosity and increases the appreciation of genuine products.

Sustainability and counterfeit protection: A forward-looking approach

Smart product labels can act as digital transponders and provide valuable information on origin, production and materials used. This innovative approach enables companies to optimize their production processes and at the same time meet the growing expectations of environmentally conscious consumers. In addition, more and more legal regulations, such as the digital product passport, will keep companies busy and be of great importance. The symbiosis of smart technology and sustainable practices not only strengthens protection against counterfeiting, but also improves the market position of manufacturers and promotes a responsible approach.

Working together against counterfeiting in the clothing industry

Making products more secure against counterfeiting is an important aspect in the fight against product piracy. Another approach is to raise consumer awareness of the need to recognize and reject counterfeits. The EUIPO study shows that the majority of consumers who consciously buy counterfeits are not concerned with the actual luxury, but only with the signaling of luxury. This is probably also the reason why items without a logo, such as the classic wool-cashmere coat 101801 by Max Mara, are hardly ever copied. There is hope here that, according to a survey by the Harvard Business Review, millennials are more likely to focus their consumption on experience, sustainability and the exchange of products, consumption and exclusivity.

We would be happy to advise you on all aspects of product labeling for counterfeit protection. Just get in touch with us!