While the luxury goods market has grown steadily over the past 20 years, representing a significant percentage of worldwide trade, research has raised concerns about the existence of counterfeit goods. And according to research, losses from counterfeit products amount to US$ 12 billion per year. Lai and Zaichkowsky define counterfeit goods as illegally manufactured products that resemble genuine products but are typically of lower quality in terms of performance, reliability or durability. Such products reduce the profits of the companies, because the product that these manufacturers sell is that the brands will not sell, which means the direct theft of the revenues of the brands.
This industry suffers from products resulting in the seizure of large numbers of counterfeit goods. Thus, the increasing demand for luxury goods is the driving force of the demand for counterfeit goods. The need for individuality and uniqueness is one of the important characteristics of fake consumers. Research has indicated that people need individuality and uniqueness, and this imperative can be expressed through personal brand preference and purchasing decisions. Since the idea that money gains status that can be seen with the goods it has, people have begun to buy products not only because they can, but also because they mean it. There are also meanings ascribed to goods, especially luxury goods, because with ownership comes a sense of exclusivity.
So, buying fake goods becomes reality as a loss of exclusivity for customers of real luxury brands. This is why businesses, new or established, need to plan, develop, and implement a strategy to launch an anti-fraud technology product. However, reaching customers with anti-counterfeit technology products is not easy and requires industry-wide focus. Such work helps to control the growth of the fake market, loss of sales and image to fashion companies.
The Way to Fight Counterfeit Products
MobilityNow is a startup company focused solely on mobile solutions. With more than 1.2 billion users currently accessing the internet via mobile devices and almost half of them using mobile phones in the electronic shopping process, MobilityNow plays a big role by adapting technologies. As more than 15% of all Internet traffic comes from mobile devices, the importance of mobile devices is increasing day by day. This means companies need to adapt their technologies, and MobilityNow plays a big role here.
MobilityNow was founded in 2012 to develop solutions for the mobile world to help people and businesses create and manage a strong digital presence with security. The company believes that the online world will be permanently connected to the offline world through mobile platforms. It advocates creating an ecosystem where people, machines, sites and cities are securely connected and defined. While the Internet helps fraud spread faster and easier, there are several software that can prevent fraud. BULLA is a simple and innovative solution to combat fraud. It consists of integrating a secure near field communication (NFC) chip in the target product and associating this chip with the company authentication server BULLA-id.
It is also defined as short-range wireless communication between electronic devices. The system can instantly verify the identity of the brand through the android mobile application and product management platform. NFC can be embedded in products and contain electronically stored information that can be read by mobile devices. One of the advantages of NFC is that it is faster to read, so it takes less time and is less tedious. It can be read by a smartphone via mobile apps. NFC is a powerful tool that uses the latest authentication technologies. It results in giving manufacturers and consumers access to a new world of possibilities that brings them closer and strengthens bonds of trust. Thus, BULLA can be integrated into various product categories.
In the fashion industry, BULLA can be integrated to reduce the risk of counterfeiting and protect the brand processes, products and innovations from fraud, as well as reduce losses for companies. For example, brands help detect counterfeiting by placing the BULLA seal on the bottle. BULLA users are used in three ways; first, BULLA provides authenticity verification to the end user. It provides an open line of communication with the brand as it works as a direct way for the customer to interact with the brand. Finally, it is easy and simple to use for the consumer, also has a user-friendly interface. For example, a user can scan the BULLA label placed on the brand via the downloaded mobile application.
The Strategic Stage of Reaching Consumers
Considering the presence of competitors for its anti-counterfeiting technology solutions products, MobilityNow has identified BULLA’s strengths and weaknesses to provide value that consumers can relate to their counterfeit issues. BULLA has two main strong points worth mentioning, such as ease of use, very easy for the end user to understand and use. And MobilityNow’s connections within the wine industry can be a force for developing partnerships, and the company also defines the role of content marketing.
Content marketing is a special type of marketing that has emerged recently due to the evolution of technology and its impact on social media. It is a technique that involves creating, sharing and publishing content to acquire and retain customers. Content marketing can be thought of as a way of providing relevant information to customers or prospects, and the information set has the purpose and power to maintain or even change behavior.
As a result, the luxury goods market, only a fraction of the market buys these legitimate products, those who can afford them. Others, those who cannot afford it, go for the option of buying fakes because while some need such items, some possibilities for obtaining them are simply not available. Most of them don’t even seem harmful to brands as they’re established and money doesn’t seem to be an issue. According to the sources obtained, the counterfeit product market continues to grow steadily over the years. In fact, the profits are worth the risk, as Chinese manufacturers keep popping up and the sanction they pay if caught isn’t so severe that they stop producing counterfeit products. It increases the relevance and importance of alternative technology for tags and labels, especially through NFC technology to prevent counterfeiting.
MobilityNow is currently an accredited organization under Portugal 2020. His expertise and competence have been recognized in the provision of mobility advisory services. Additionally, the company is currently marketing near field communication and its multiple uses for the premium brand. In addition, over the years, strategies to reach consumers with counterfeit products have been successful.
Writer: Ozlem Guvenc Agaoglu