Consumer spending is set to hit $1.29 trillion by 2024, growing at 7%, as per S&P Global Market Intelligence, 2024. But there is a significant challenge, approximately 25-30% of products in the market are counterfeit (according to Crisil and ASPA in their 2024 report). Sectors like apparel, FMCG, and automotive are the hardest hit. To address this, authentic marks are valuable. They protect brands, enhance transparency, and help build consumer trust.
Challenge of Counterfeiting in India
Counterfeiting is a serious problem in our country. The industries most impacted are apparel (31%) followed by FMCG (28%), and automotive (25%). This problem affects many kinds of businesses, including consumer goods and pharmaceuticals. The annual loss due counterfeiting stands at Rs 1,05,000 crore. But there is a solution. If India adopts stronger enforcement measures and better authentication technologies, as suggested by Crisil and ASPA in their 2024 report, it could save over Rs 50 billion each year.
With consumer spending increasing, brands need to address rising concerns about product authenticity. The digital shopping boom adds urgency. In just three years, India gained 125 million online shoppers. By 2025, another 80 million are expected to join according to the Kantar report, 2024. Businesses have a great chance to use authentication technologies that give customers peace of mind.
Importance of Preserving Genuineness in Branding
The present-day consumers are educated. They want to be assured that the item they are purchasing is original. In India, the use of smartphones is increasing. According to Statista, it is predicted to rise from 7% in 2024 to 8.3% by 2029. Customers are growing more reliant on smartphones to validate the legitimacy of products before making a purchase. Transparency is now fundamental. According to ESW’s latest Global Voices Survey, 64% of consumers trust brands that demonstrate the authenticity of their products.
These trust marks explain how consumer behavior is changing. Tools like QR codes and digital markers help consumers easily check whether a product is real. This simple process boosts trust and enhances the shopping experience.
The Inner Workings of Authentic Mark
Authenticity mark is designed to combat counterfeiting and enhance product transparency. Consumers can scan a product’s QR code with their smartphones. Instantly, they get information about its source and legitimacy. This ensures that the product is genuine before they buy it. Not only does it protect consumers, but it also safeguards brand reputation.
For businesses, authenticity marks offer valuable insights. By analyzing consumer data, businesses can understand purchasing trends and adjust their offerings. This helps them stay ahead in a competitive market.
Dealing with Financial Losses Caused by Counterfeiting
Counterfeiting is a significant economic issue. India loses over Rs 1 trillion every year due to fake products. This loss is significant. But the damage goes beyond finances. Counterfeiting harms brand reputation and erodes consumer trust. By using tools like trust marks, businesses can protect their revenue and rebuild trust.
With its potential to save over Rs 50 billion annually, trust marks offer substantial benefits. It helps businesses safeguard their earnings while ensuring their products are trusted and genuine.
Why Technology Holds the Answer
Technology plays a key role in fighting counterfeiting. Reliable verification mechanisms are becoming more and more necessary as smartphone usage expands. Smartphone adoption was 7% in 2024 and is predicted to increase to 8.3% by 2029 as reported by Statista. This trend offers brands a fantastic chance to launch user-friendly digital authentication techniques.
QR codes and digital tags enable customers to instantly verify a product’s authenticity. This makes the process quick and simple, helping to boost consumer trust. Every time a customer shops, they can be confident they are purchasing genuine products.
Creating Consumer Trust in the Contemporary Digital Age
Future consumer behaviour is being shaped by Gen Z and millennials in India. These generations are more prone to interact with brands which focus on transparency as they value trust and integrity. In the modern market, trust marks are becoming essential to companies trying to maintain their standing in the market.
Brands can cope with counterfeiting concerns and satisfy tech-savvy consumers via trust seals. Brands must act quickly to remain competitive, as Kantar projected this year that 125 million new digital shoppers had emerged in the last three years, with an additional 80 million estimated in 2025.
As the market evolves, brand authenticity will become crucial. With increasing smartphone use, tools like trust mark will help brands protect their reputation and empower consumers to make informed choices.
