Tuesday, June 25, 2024

Fake products engulfing Indian markets

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25-30% of the products are counterfeit: Study
PNS|New Delhi

A joint study by Authentication Solution Providers Association (ASPA) and CRISIL has revealed that approximately 25-30 percent of products in Indian market are counterfeit. The study was conducted in twelve major cities including Hyderabad.

The other eleven cities are Delhi, Agra, Jalandhar, Mumbai, Ahmedabad, Jaipur, Indore, Kolkata, Patna, Chennai and Bangalore. The survey gauged their perception of counterfeiting in several key sectors. Major industries in India including Pharmaceuticals, Electronics, Automotives among others have been plagued with counterfeiting activities.

The counterfeiting is higher than the general industry expectations. Counterfeiting is most prevalent in FMCG, Apparel, and Agrochemical sectors (~30%), followed by the pharmaceutical, automotive, and consumer durables sectors (20-25%).

The survey further revealed that almost 89% of consumers acknowledge the presence of fake products in the market and are often compelled to buy counterfeits for reasons such as sensitivity to price, demand-supply gap, desire to buy luxury brands, peer pressure, and social motivations.

Sharing insights from the report, ASPA president, Nakul Pasricha said, “Illicit goods trade stood at Rs 2.6 trillion in FY 2019-20 in India and affecting almost all sectors. It is on the rise and heavily bleeding the country, industry, and consumers by large. An aware consumer holds the power to fight this menace; however, we must enhance consumer awareness about this issue. Consumers play the most crucial role in fighting against fakes.”

“When many consumers are unaware of the actual threat from counterfeits, the country will never be able to harness the strength of active consumer participation in curbing the sale of fake products in the market,” Pasricha added.

Speaking of the steps to prevent conterfieting the ASPA president said, “The country requires a comprehensive, proactive, and holistic counter approach. We need to make a significant change in increasing awareness, implementing authentication solutions, supporting these with robust track and trace infrastructure, and securing the supply chain against criminals.”

Senior Director, CRISIL Market Intelligence and Analytics, Suresh Krishnamurthy said, “Counterfeiting is not limited to high-end luxury items. Even common items, from cumin seeds to cooking oil and from baby care items to medicines, are increasingly reported as counterfeit. An important finding of the survey was that consumer perception pegged the extent of counterfeiting at 25-30% of the market, higher than the general industry expectation.”

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