Posted on July, 18, 2018 at 09:09 am
James Ngomeli
Kenya is ranked among the largest markets for counterfeit goods in East Africa and the fear within the business community that the products could soon take over the national economy, is growing by the day.
The shady business of “fakes” and counterfeit goods has ballooned into a global industry worth as much as $461 billion (Sh46.4 trillion), according to the Organisation for Economic Co-operation and Development (OECD). Locally, more small and mid-sized brands are suffering from lost profits,damaged reputation and reduced loyalty even as marketers struggle with how to deliver authentic brand experience to customers.
Counterfeits are slowly killing genuine businesses and manufacturers by flooding the market with fake “cheap” goods that outdo quality manufactured products by targeting buyers trying to save money. The counterfeit goods deny the country the much needed revenue in form of tax and employment. Counterfeit medicines also pose a threat to patients, not to mention that such goods also contribute to high crime rate as they are seen as get-rich-quick schemes for unscrupulous individuals. The brands must now take an active role by applying several strategies.
The brands should take an effort to advise and educate their consumers on how to identify fake products in the market. First, companies must play an active role to encourage the distribution value chain to identify what is fake. Secondly, brands should enlist digital aspects through use of QR (“Quick Response) codes scanning machines of which you are able to see the origin of the products as they change hands. This is happening in the gas distribution value chain where the cylinders are scanned.
The companies should also ensure there are watermarks on logos and products to ensure duplication is made more difficult than ever before. The use of technology to ensure that the security marks cannot be duplicated is key. Securing your brand through registration of Intellectual Property is also very critical at this stage. The brands should be registered also in the counterfeits countries of origin. The legal process can be introduced when the violation occurs provided the brand is well registered. Counterfeiting may never be defeated completely, but it can be discouraged through law, technology, and proactive strategies. The writer is the Chairman of the Chartered Institute of Marketing – East Africa
Source: MediaMax Network