Apparel remains one of the most counterfeited products globally
The Authentication Solution Providers’ Association (ASPA) is the world’s first and only self-regulated non-profit organisation representing the global physical and digital authentication solutions industry. Founded in 1998, ASPA focuses on raising awareness about the importance of authentication technologies for brand protection, consumer safety, and revenue security, working closely with global and Indian authorities to combat counterfeiting and safeguard interests across various industries. In an interview with Fibre2Fashion, ASPA President Manoj Kochar discusses anti-counterfeiting efforts and solutions, including for the apparel industry.
What ethical considerations do companies in the authentication industry face, particularly when developing and deploying technologies that might impact consumer privacy or data security?
Companies in the authentication industry face complex ethical considerations when developing and deploying their technologies. They must balance robust security measures with respect for consumer privacy, ensuring data protection while maintaining transparency about data usage. Ethical concerns include avoiding bias and discrimination in authentication systems, obtaining informed consent, and implementing proportional measures that do not overly burden users. Companies must also consider accessibility for all users, practice data minimisation, and provide user control over personal information. The ethical use of AI in authentication presents additional challenges, requiring careful implementation to avoid unfair outcomes. Ultimately, these companies must navigate the delicate balance between enhancing security and respecting individual rights and societal norms in an increasingly digital world.
What are the most significant technological advancements in authentication solutions over the past few years, and how have they improved the fight against counterfeiting?
Recent years have seen significant advancements in authentication technologies to combat counterfeiting. Advanced holograms with multi-layered security features and dynamic visual effects have become more sophisticated and harder to replicate. Blockchain technology has emerged as a powerful tool for creating immutable, transparent supply chain records, enabling stakeholders to trace products from manufacture to sale. Other innovations include DNA tagging, which embeds unique genetic markers into products, and smart packaging with NFC chips for instant verification via smartphone. AI-powered image recognition systems can now detect subtle differences between genuine and fake items at scale. Quantum dot technology, invisible to the naked eye but detectable with specialised devices, offers another layer of authentication. These technologies, often used in combination, have significantly enhanced the ability to verify product authenticity and track goods throughout the supply chain.
ASPA has been a leader in anti-counterfeiting solutions for over two decades. What do you see as the biggest challenges in the fight against counterfeiting today?
ASPA has been at the forefront of anti-counterfeiting efforts for over 25 years, facing evolving challenges in this critical fight. Today, the biggest hurdles include inefficient product tracking across complex global supply chains, high costs associated with implementing advanced authentication solutions, and persistent public health risks from dangerous counterfeit products. Research shows that over 70 per cent of consumers rely on brand labels and packaging to determine product authenticity, making it crucial to develop more sophisticated and reliable authentication methods.
One of the primary challenges is the need for cost-effective, widely adoptable authentication solutions. While promising technologies like blockchain offer potential, their large-scale implementation requires significant investment and widespread acceptance. Additionally, navigating diverse global regulatory environments adds another layer of complexity to anti-counterfeiting efforts. The complexity of global supply chains also makes them vulnerable to the introduction of counterfeit products, necessitating improved transparency and track-and-trace capabilities.
To address these challenges, ASPA promotes innovative security solutions such as holographic labels, micro text, specialised inks, and unique serialisation. These technologies enhance supply chain transparency and improve product traceability. Through industry collaborations and educational initiatives, ASPA continues to raise awareness about cutting-edge authentication solutions and the risks associated with counterfeit goods. By championing these efforts, ASPA aims to establish consistent, effective anti-counterfeiting practices that safeguard both intellectual property and public health on a global scale.
What specific impact does counterfeiting have on the apparel industry, particularly in terms of economic loss and brand reputation?
Counterfeiting has a devastating impact on the apparel industry, causing substantial economic losses and severely damaging brand reputations. Economically, it is estimated that counterfeiting leads to annual losses exceeding $35 billion in the fashion and luxury goods sector alone. This directly affects companies’ revenues, job creation, and tax contributions.
Beyond financial losses, counterfeiting erodes brand value and consumer trust. When consumers unknowingly purchase fake products of inferior quality, their disappointment often translates to negative perceptions of the authentic brand. This damages hard-earned reputations and undermines brand loyalty.
Moreover, the prevalence of counterfeits can force legitimate brands to lower prices to compete, further impacting profit margins. It also stifles innovation, as companies may be hesitant to invest in new designs that could be quickly copied.
How can consumers distinguish between genuine and counterfeit apparel products? Are there specific markers or labels they should be looking for?
To distinguish genuine from counterfeit apparel, consumers should look for key indicators of authenticity. Examine products closely for quality differences, such as uneven stitching, misaligned logos, or misspelled labels. Genuine items typically feature high-quality finishing and accurate details.
Look for authentication features like holograms, QR codes, security labels, or unique serial numbers. Many reputable manufacturers include these, allowing verification through online resources or brand apps.
Purchasing from authorised retailers or directly from official brand stores significantly reduces the risk of buying counterfeits. Brands often list authorised sellers on their websites.
ASPA emphasises the importance of consumer education on identifying these markers. By being vigilant and informed, consumers can prevent the spread of counterfeit goods and ensure they receive the expected quality.
How can consumers verify the authenticity of a product when purchasing apparel online?
Consumers can verify the authenticity of apparel purchased online by buying from authorised retailers or official brand websites, checking for unique product codes or QR codes verifiable through manufacturer apps, examining product images for quality and accurate branding details, and looking for secure authentication features like holograms or RFID tags. Verifying seller ratings, reviews, and comparing prices are also crucial steps. The ASPA & CRISIL Report underscores the importance of these measures, revealing that the domestic readymade garment market in India is projected to reach ₹3,800 billion by fiscal 2024, with an alarming 30-40 per cent counterfeiting level. Apparel remains one of the most counterfeited products globally due to ease of replication and low consumer perception of harm, highlighting the need for increased consumer vigilance and robust authentication measures in the fashion industry.
What are the potential consequences for consumers who unknowingly purchase counterfeit apparel, beyond just financial loss?
Consumers who unknowingly purchase counterfeit apparel face several potential consequences beyond financial loss. Health risks may arise from toxic dyes or chemicals used in manufacturing substandard materials. Ethical concerns include inadvertently supporting illegal labour practices and organised crime networks. Legal issues could emerge if caught possessing or using counterfeit goods. Brand loyalty and personal image may be compromised when the poor quality becomes apparent. Additionally, the proliferation of counterfeits undermines the legitimate apparel industry, potentially leading to job losses and economic impact.
The high level of counterfeiting in the apparel segment (30-40 per cent) contributes to this issue. Consumer perception of low harmfulness and high willingness to purchase counterfeits exacerbate the situation, highlighting the need for increased awareness and stricter regulations.
What steps can apparel manufacturers take to ensure their products are not easily counterfeited?
Apparel manufacturers can implement several strategies to protect their products from counterfeiting. They can incorporate advanced authentication technologies such as RFID tags, NFC chips, QR codes, or holograms that are difficult to replicate and allow consumers to verify product authenticity easily. Holograms, in particular, offer a visually striking and hard-to-duplicate security feature that can be customised for each brand. Utilising unique, complex designs and high-quality materials that are challenging to duplicate can also deter counterfeiters. Manufacturers should secure their supply chains by carefully vetting suppliers and implementing track-and-trace systems to monitor products from production to point of sale. Adhering to international standards like ISO 22383, which provides guidelines for authentication solutions, can enhance the effectiveness of anti-counterfeiting measures. Collaborating with authentication solution providers and joining industry associations like ASPA can provide access to cutting-edge anti-counterfeiting measures and best practices. Legal protection through trademarks and patents, combined with vigorous enforcement actions against counterfeiters, is crucial. Educating consumers about how to identify genuine products and the risks of purchasing counterfeits can create a more informed customer base.
How can retailers, both online and offline, ensure that they are not inadvertently selling counterfeit apparel?
Establish robust supply chain verification processes, including thorough background checks on suppliers and regular audits. Implement advanced authentication technologies like RFID tags, QR codes, holograms or blockchain-based tracking systems to verify product authenticity. Train staff to identify counterfeit items through physical inspection and documentation verification. For online retailers, use image recognition software to detect fake listings. Collaborate with brands to access their authentication databases and stay updated on latest anti-counterfeiting measures. Engage third-party authentication services for expert verification. Implement strict policies for marketplace sellers, including identity verification and product authenticity guarantees. Regularly monitor and remove suspicious listings or products. Educate consumers about the risks of counterfeits and how to identify genuine products.
Could you elaborate on the types of authentication technologies that are most effective in the apparel industry?
In the apparel industry, several authentication technologies are proving highly effective in combating counterfeiting. RFID tags enable real-time product tracking and unique identification throughout the supply chain. Holograms offer visible, tamper-evident features that are difficult to replicate. Security labels with unique serial numbers or barcodes allow quick verification through manufacturer apps or online databases.
Emerging technologies like blockchain, AI, and IoT are enhancing authentication capabilities by providing immutable records, detecting anomalies, and enabling real-time monitoring.
The ISO 22383 standard plays a crucial role in ensuring the effectiveness of these authentication solutions. It provides guidelines for the performance criteria of authentication tools, ensuring they meet international quality benchmarks and are interoperable across systems.
ASPA actively researches and promotes these technologies, aiming to develop more advanced, reliable, and cost-effective authentication systems. These combined strategies strengthen brand protection, enhance security, and boost consumer confidence in the apparel sector.
What role does digital authentication play in protecting brands, and how does it complement physical authentication methods?
Digital authentication plays a crucial role in protecting brands by providing a virtual layer of security that complements physical authentication methods. It offers real-time verification capabilities, allowing consumers and retailers to instantly confirm product authenticity through smartphones or other devices.
Digital solutions like QR codes, NFC tags, and mobile apps enable quick access to product information and verification databases. These technologies can track a product’s journey through the supply chain, offering transparency and traceability that physical methods alone cannot provide.
Moreover, digital authentication methods are harder for counterfeiters to replicate, as they often involve dynamic, cloud-based systems. They also allow brands to gather valuable data on product distribution and consumer behaviour.
By combining digital and physical authentication methods, brands create a multi-layered defence against counterfeiting. This integrated approach enhances security, improves supply chain visibility, and builds consumer trust, ultimately strengthening brand protection in an increasingly digital marketplace.
What role does international collaboration play among companies providing authentication solutions, especially when dealing with global counterfeiting networks?
International collaboration plays a crucial role in combating global counterfeiting networks, with ASPA at the forefront through partnerships with global authorities and industry bodies. These collaborations enable exchange of expertise, joint research projects, promotion of best practices across various industries, development of comprehensive strategies adaptable to different markets, and data-driven policy creation through consumer advocacy partnerships.
By working with organisations like ACMA, CSIR-NIIST, CII, GSI, and IHMA, ASPA leverages diverse expertise to tackle sophisticated counterfeiters and enhance authentication solutions worldwide. These partnerships facilitate the creation of adaptable standards and strategies, fostering a coordinated response to counterfeiting. Through collaborative efforts such as the ASPA & CRISIL Anti-Counterfeiting Report and open archives of counterfeit product raids, international collaboration ensures a more secure and reliable global marketplace.
How can companies in the authentication solutions sector address the challenges posed by the rise of e-commerce and the increased risk of counterfeit products online?
ASPA is focusing on developing cutting-edge digital authentication tools for online platforms, including AI-powered image recognition and blockchain-based tracking. We are collaborating with e-commerce leaders to implement standardised verification processes, potentially through APIs for real-time authentication checks. We are also creating consumer-friendly mobile apps for easy product verification. To enhance supply chain visibility, we are exploring IoT sensors and cloud-based tracking systems. ASPA is committed to educating online shoppers about counterfeit risks and proper use of authentication tools through digital campaigns and influencer partnerships. We are dedicated to continuously updating our technologies to stay ahead of evolving counterfeiting tactics in the digital space, ensuring robust protection for consumers and brands alike.
How do you see regulations and government policies evolving globally to tackle the growing threat of counterfeiting?
Regulations and government policies are evolving globally to address the escalating threat of counterfeiting. Governments worldwide are strengthening intellectual property laws, implementing stricter penalties, and adopting more comprehensive legislation with improved product tracking and tracing provisions. International cooperation and standardisation are gaining prominence, with agreements and initiatives being formed to promote uniform authentication procedures across borders. Governments are increasingly leveraging advanced technologies like blockchain and AI to enhance the effectiveness of their anti-counterfeiting efforts, improving visibility and security throughout the product lifecycle.
ASPA plays a crucial role in this evolving landscape by promoting responsible behaviours and high ethical standards in the authentication industry. Through its code of conduct emphasising integrity, transparency, and antitrust compliance, ASPA fosters industry credibility and fair competition. By encouraging members to report violations and advocating for consistent ethical standards, ASPA contributes to a more transparent and accountable sector. This global regulatory shift reflects a commitment to combating counterfeiting through stricter legislation, international collaboration, and technological advancements, with ASPA at the forefront of promoting integrity and trust in the authentication industry.
How do you envision ASPA’s growth and expansion in the next five years?
ASPA envisions becoming a global leader in combating counterfeiting over the next five years. We aim to unite stakeholders, raise awareness, and advocate for robust anti-counterfeiting standards across industries. Our focus will be on developing best practices, promoting information sharing, and fostering innovation in authentication technologies. ASPA will strengthen collaborations to shape effective protocols, lead research on emerging trends, and influence legislation. We will strive to be the go-to organisation for counterfeiting-related advice, encouraging continuous innovation among our members. Our ultimate goal is to create a safer marketplace that protects businesses and empowers consumers to verify product authenticity, significantly reducing the global counterfeiting menace.
