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Cosmetics Counterfeiting – How Industry Leaders Fight Back

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Product safety is a constant battle.

Product counterfeiting and diversion are at an all-time high—stealing global revenues in excess of $1.7 trillion annually—with an estimated $3 billion attributed to counterfeit cosmetics alone. What’s worse, counterfeit or poorly handled cosmetics pose significant safety risks to your consumers with a long list of dangerous ingredients including E. coli, lead, mercury, cyanide and arsenic. You’ve worked hard to build your brand. Don’t let counterfeiters erode customer loyalty and trust.

OZNaturals takes the offensive.

OZNaturals creates high-quality, effective and affordable skincare products that combine the best science with the power of nature. It has spent the past six years building a global distribution network and now sells in over 80 countries. As international sales increased, the company decided to take a proactive approach and confront counterfeiting and diversion threats head on.

The first clear line of attack is product packaging. While there are numerous overt and covert technologies available that can be deployed on a package, traditional measures are no longer enough to stay ahead of increasingly sophisticated counterfeiters and gray market criminals. Tools of the past like holograms and customized inks are easily copied or need specialized equipment to read. Additive electronics like RFID and NFC are far too expensive and complicated for most products.

OZNaturals realized that the ability to utilize their existing product packaging was an essential component of an effective anti-counterfeiting program. The company selected the Systech Brand Protection Suite™ to secure its global supply chain from counterfeit and diverted products.

“OZNaturals is founded on the belief that consumers deserve highly effective and safer skin care products,” said Mike Small, OZNaturals’ CFO. “We selected the Systech Brand Protection Suite because it provides an effective way to allow the customer to ensure authenticity based on our current packaging. The solution leverages printed barcodes, whereas no new tags or other materials need to be added to our product packaging. It puts authentication capabilities into the hands of our distributors and loyal customers.”

Winning is easier than you think.

Systech’s non-additive product authentication technology is a brand protection game-changer. It turns an existing package QR or UPC barcode into a unique digital e-Fingerprint® that’s impossible to duplicate. Results from an independent study by Salt Hill Statistical Consulting confirmed that the probability of a counterfeit product authenticating as a genuine e-Fingerprinted item was less than 1 in 55 quadrillion. Using a smartphone app, consumers, distribution partners and field inspectors can instantly authenticate products anywhere in the supply chain. They know immediately if a product is authentic as well as where, when and to whom it was originally manufactured and shipped.

Watch this demo video to see Systech’s non-additive brand protection solution in action.

Want to learn how other industry leaders are fighting supply chain threats? Systech recently surveyed brand protection professionals to understand the impact of counterfeiting and diversion on their businesses and the strategies they favor to fight back. Fill out the form on the right to download the counterfeiting benchmark report.


The above paid-for content was produced by and posted on behalf of the Sponsor. Content provided is generated solely by the Sponsor or its affiliates, and it is the Sponsor’s responsibility for the accuracy, completeness and validity of all information included. Global Cosmetic Industry takes steps to ensure that you will not confuse sponsored content with content produced by Global Cosmetic Industry. and governed by its editorial policy.