How To Build A Business Case For An Anti-Counterfeiting Solution

Last year we highlighted why brands need to develop sophisticated anti-counterfeiting strategies. However, knowing you need to do something and understanding the best way to do it aren’t always the same thing.

Building a robust business case for a solution that will effectively tackle criminal fakes involves several key steps.

1. Define and understand the problem

You can’t propose any kind of fix before you’ve quantified the impact of fake goods on your business. While fact-finding, consider both the clear sales losses and the hidden costs of counterfeiting, to evaluate its contribution to:

  • Financial losses – The easiest to quantify – how much your revenue has suffered
  • Brand damage – How your reputation and customer trust have dipped
  • Legal risks – Potential legal implications from fake goods entering your supply chain

Once you’ve collated the appropriate data, it’s easier to illustrate the extent of the problem. This allows the relevant parties to better understand the seriousness of counterfeiting and they’re more likely to commit to combating it.

2. Identify stakeholders and their concerns

You’ll need to engage with and understand the concerns of various parties in your supply chain, including:

  • Suppliers
  • Sellers
  • Logistics partners

Any of these providers can face serious operational challenges due to counterfeiting. Everything from reputational damage to dealing with customer complaints and returns can impact their integrity and resources. By consulting with them to learn their specific issues, you can select an anti-counterfeiting solution that addresses these needs.

3. Explore and evaluate anti-counterfeiting options

Once you understand the problem and stakeholder concerns, you’re well placed to research anti-counterfeiting technologies. Certain methods currently in widespread use, such as QR codes and holograms, are less effective than you might think. Criminal techniques and technology use have evolved at an exponential pace to render such solutions useless in many cases.

Aim to include a list of ‘must-haves’ on any options you present in your business case, such as:

  • Implementation with minimal upheaval or disruption to existing processes
  • Difficult to reverse engineer and not vulnerable to sophisticated printing counterfeit techniques
  • Easy verification via smartphone or digital device

If you can evaluate based on factors such as cost, implementation time and effectiveness, you’ll be able to justify your ultimate recommendation.

4. Calculate ROI

Alongside a detailed SWOT analysis, your business case will also need to incorporate a clear assessment of return-on-investment. Consider potential benefits like:

  • Cost savings – Calculate potential reductions in losses related to counterfeiting
  • Sales growth – Highlight how enhanced brand integrity can lead to higher consumer trust and sales
  • Market share increase – Emphasise the importance of increased trust leading to new customer acquisition from competitors

Presenting a persuasive financial argument will help decision makers understand the long-term value of investing in anti-counterfeiting.

Time to make your case

From luxury goods and electronics to pharmaceuticals and beauty products, counterfeiting poses a significant threat to brands across various sectors. By building a clear and compelling business case, you can secure the buy-in needed to protect your brand.

To start a conversation about how to safeguard your business against the threats of counterfeiting, please get in touch.