GS1 India: A Standards Organisation

As per the Global Brand Counterfeiting Report 2018, total value of counterfeiting globally has reached to 1.2 Trillion USD in 2017 and is heading towards 1.82 Trillion USD by 2020 including counterfeiting of all equipment/products. For Indian market, where online retailing is expected to account for 3% of the retail market size by 2020, according to a report by PwC, counterfeiting provides a major challenge. The annual loss to counterfeiting in India amounts to 1 trillion per annum. Counterfeit products pose 3 major threats: Consumer safety :  Typically, authentic products goes through various high quality control processes during the manufacturing and processing and are governed by safety laws which companies have to abide by. Loss of revenue for brands and government:  Counterfeit products impact the market share for authentic business and also reduces the revenues for both businesses, in terms of sales revenues, and the Government, in terms of taxes and duties. Investment...

Back in May 2015, Indian food safety authorities outlawed the production and sale of an instant noodle product, manufactured by a leading global brand, for high level of MSG. As the ban surfaced, the company struggled to recall affected instant noodle packs from its supply chain spread across the country. The company was unable to access as much as 35–40% of the total stock as thousands of outlets selling the product are outside the company’s direct reach or network. Recalling a faulty product proved difficult, especially from the rural areas. As a result, the only retort available to the company was to destroy the whole stock, wherever found in the supply chain. Trucks of material were destroyed, leading to huge losses in cost and reputation. Brand owners need to be always prepared for the uncalled situations like the above. The sheer preparedness will not only save huge costs by exactly targeting the stock that needs to be recalled but also save the brand image, portraying ...