use anti-counterfeit tech as fatal weapon to combat fakes in electronics industry
TRANSCRIPT
Use Anti-Counterfeit Tech as Fatal Weapon to Combat Fakes in Electronics Industry
The Latest Market Analysis of the Electronics Market and the Solution of Brand Protection
Presented by Alfons FuttererTel.: +852 2523 9959 / Mobile: +852 6056 9938
Agenda
1 Consumer Electronics Industry Overview
2 Challenges and Opportunities in Consumer Electronic
3 Brand Protection Implementation
4 Successful Cases
1 Consumer Electronic Industry Overview
The electronics industry, especially meaning consumer electronics (CE), now become a global industry worth billions of dollars.
The electronics industry encompasses a wide range of different manufacturing processes and products. The most visible products of the electronics industry are consumer electronics such as television sets, computers and cameras.
These visible products represent a tip of iceberg situation as a large part of the electronics products.
Highly Competitive, Dynamic, Changing Electronics
Industry
Source from :https://www.cbp.gov/sites/default/files/assets/documents/2016-Apr/FY%202015%20IPR%20Stats%20Presentation.pdf
According to U.S. Customs and Border Protection department statistics, consumer electronics has been ranked the second most frequently seized fake products since 2014.
The Counterfeit in US Electronics Market
Counterfeit Alarm in the Consumer Electronics Industry
However, there comes an alarming issue that some lawbreakers target at these products due to the tremendous profit.
Asia is the most predominant regional source of counterfeit CE products. Additionally, Russia and India are suspected sources, followed by Tai Wan, Philippines and Malaysia.
Leading Counterfeit Electronic Countries
Counterfeit Electronic CasesU.S. Department of Commerce (2015)• More than 8% of total electronic
merchandize trade is counterfeit• Estimated revenue loss USD 600 billion
Grey Market and Counterfeit Abatement, AGMA (2014)• 8-10% of all technology goods sold worldwide are
from grey market.• Estimated revenue lost USD 100 billion.
U.S. Patent and Trademark Office• USD 250 billion damage to the US economy due
to counterfeit and piracy.• Cost to the industry in terms of product failures,
returns and litigation, cannot be assessed, but are expected to be tremendous.
Semiconductor Industry Association (SIA)• USD 7.5 billion lost revenue to semiconductor
manufacturer due to counterfeiting• About 11,000 jobs lost.
US Customs and Border Protection and China’s General Administration of Customs (2015)• 245 thousand counterfeit consumer electronic
devices seized before they got exported out of China.
China Customs Office in South China (2015)• Over 6000 counterfeit radios seized which
infringed on Sony trademarks. • Within less than 12 weeks the customs office
seized in total 11 consecutive batches of infringement and counterfeit consumer electronics products, including mobile phones, earphones, game consoles.
2 Challenges and Opportunities in Consumer
Electronics
How Electronics Products are Counterfeited
• Relabeling
• Sanded and Remarked
• Blacktopped and Remarked
• Scrap Salvaging
• Illegal Manufacturing
• Etc.
Relabeling
Sanded & Remarked
Blacktopped & Remarked
Scrap Salvaging
Factors Contribute the Entry of Counterfeit Electronics into the Supply Chain:
• Instant Pudding Mindset
Some OEMs pursue high productivity in a short time, this results in shorter leading time for components manufacturers. In this situation, counterfeit electronics components with short leading time appear in the market.
• No Inspection
In order to produce high quality components with lower cost of time and money, some OCMs omit the process of products inspection. Consequently, no inspection leaves supply chains vulnerable to counterfeit entry.
• Weak Control on Offshore Production
Production outsourcing sacrifice control over product manufacturing and flow
• Complicated Distributor Supply Chain
Few have supplier relationships or product inspection programs, leaving many opportunities for counterfeit product entry.
Counterfeiting
Problem
Profit erosion
Negative customer experience
Product warranty & safety issues
Cause
Violate the legitimate rights of sales
to the retailers
Distributor channel conflict
Supply & demand imbalance
Disruptive pricing pressure
Revenue cannibalization
Cause
Knock-offs “Retreading” products Fake certificate
Unauthorized, unofficial manufacturer trading
Absence of transparency in supply chain
3 Major Challenges in Consumer Electronic (CE) Industry
Irregularities in
E-commerce
Cause Return fraud
IP infringement
Threaten the reputation
Damage to the brand value
Lack of an effective monitoring in distribution channels
3 Major Challenges in Consumer Electronic (CE) Industry
Victims of Counterfeit Electronics
• Cause life-threatening accidents (power bank explosion, electricity leakage, fire broke )
• Personal information leakage
• Loss job opportunities
ConsumersCE Brand Owners
• Loss revenue from product sales
• Damage brand image and value
• Unwanted lawsuits and compensation from customers (accidents, brand piracy lawsuit,)
More Fast & Accurate Verification Methods
keep the counterfeits away
TrackMatriX ® GEO TrackMatriX ® Lock
Track & trace Supply chain monitoring Tracking and reporting
system
Covert & forensic tracer Extremely difficult to copy Custom-made detectors
Taggant-Detecor combo
Upgrade Verification MethodsIncrease Supply Chain
Traceability Better Brand Management
Opportunities in Consumer Electronic Industry
Counterfeiting Problems Grey Market Irregularities in E-commerce
Secret-function-equipped Code
data encryption Absolute protection
Brand Protection Strategy
Counterfeiting
Problem
o Utilize hi-tech marking material on the CE
o Improve the security level of CE labels & certificates
Strategy 1: Strategy 2: Strategy 3:
o Product track & trace systemo Superior inventory
managemento Product safetyo Data transparency
Irregularities in
E-commerce
o Strengthens CE authentication approach
o Establish customer engagement system
Increase supply chain traceability for better product controlling
Interactive with your customers for better brand management
Upgrade your verification methods
3 Brand Protection Implementation
For the Rest slides, please visit the following website to download the entire presentation:
https://www.nanomatrixsecure.com/blog/successful-webinar-for-electronic-industry
Please do not hesitate to contact us for any further queries:NanoMatriX International Limited
Tel: +852 523 9959Mobile: + 852 6056 9938
Email: [email protected]: www.nanomatrixsecure.com