Best-in-Class Solutions to Fight Fake Cosmetics
NanoMatriX is a globally acknowledged solutions provider when it comes to secure and smart packaging as well as anti-counterfeiting solutions for the cosmetics industry.
The global wellness and cosmetics industry that is worth trillions of dollars is beset with many problems that rob businesses around the world of major revenue. Among the issues that plague the industry is pilferage, product tampering, return fraud, production overrun, and poor customer engagement.
Key issues in the cosmetics industry
Counterfeiters have found a lucrative supply chain in the cosmetics industry. The scary part of this is that instead of just getting a fake, consumers are also getting potentially dangerous products in the deal as these counterfeit cosmetics may contain toxic substances.
Some of the harmful substances found in fake cosmetics:
- Lead
- Arsenic
- Cyanide
- Mercury
- Cadmium
€4.7 Billion
€1.7 billion
Loss in government revenue due to counterfeiting in the cosmetics and personal care sector in EU
€1.762 Billion
Sales loss from counterfeit cosmetics in the manufacturing sector in EU (2015)
7.8%
Loss in sales of the legitimate cosmetics sector in the EU Marketplace due to counterfeiting
References:
- https://www.europol.europa.eu/newsroom/news/stepping-fight-against-counterfeit-cosmetics-perfumes-and-luxury-goods
- https://www.statista.com/statistics/560212/counterfeit-costmetic-and-care-sales-losses-by-industry/
- https://euipo.europa.eu/tunnel-web/secure/webdav/guest/document_library/observatory/resources/research-and-studies/quantification-of-infringement-cosmetics_en.pdf
Robust Anti-Counterfeiting Solutions for Cosmetics Brands & Manufacturers
High-Security Labels
The security graphic features are designed through special anti-counterfeiting software to create a non-duplicable image through mathematical algorithms. For example, guilloche, relief, latent, etc. All of these features are created or combined with other security graphic features.
- Guilloche: Form of two or even more interwoven fine lines to generate specific patterns by mathematical algorithms. The structure of the design is an intricate and repetitive pattern that can prevent any fabrication or duplication.
- Relief: Line patterns with line width modulation, wavy line patterns and which can enhance convex and three-dimensional display effect of graphics.
- Anti-copy: Combination of special line patterns and graphics to form a graphic in split lines. Split lines appear when the magnifying glass is used. The split lines can serve as anti-copy lines, thereby being blurred out when photo-copies are made from the original document.
- Latent image: Hidden patterns or texts. Integration of parallel lines, Guilloche, and patterns as a hidden anti-counterfeiting to covert information. The hidden image or text appeared when observing the image with a specific optical angle.
- Microtext: The tiny texts can only be viewed by a high-resolution microscope. Any reproduction machine is unable to identify and copy the microtext but in dotted or solid line because of downgrading resolution after scanning or photocopying.
Holographic Labels
Our hologram brand protection solutions comprise multi-level security holographic labels with overt, covert, and forensic features suited for the cosmetics industry.
Tamper-evident features and security taggants in the holographic security stickers help to ensure that electronics manufacturers identify parallel-trading, counterfeits, warranty return fraud, or production overrun.
Matrix-Mark™ Solutions
Matrix-Mark™ Taggants can help take the brand security of the wellness and cosmetics industry to the next level by making counterfeiting impossible. These taggants are robust inorganic markers that withstand high physical and chemical resistance tests and help in the long-term authentication of the most fragile packaging. Product authentication can be readily executed with the help of specialized sensors, imparting product integrity to one’s brand. Furthermore, the optional forensic feature added in the taggants can be legally enforceable evidence, thereby proving the product’s authenticity in a court of law.
Thermochromic Ink
Thermochormic inks change appearance/color when exposed to diverse temperatures. We provide an extensive range of thermochromic inks that can help the wellness and cosmetics industry implement bespoke anti-counterfeiting and consumer engagement solutions. These will help the industry tackle revenue loss on account of counterfeiting in a major way. That apart, the quality assurance that the NanoMatriX ink solutions impart to the products of this industry reflects in their much healthier bottomline.
TrackMatriX® Solutions
The TrackMatriX® SaaS platform is a digital anti-counterfeiting and consumer engagement tool that will help both protect any wellness and cosmetics brand against counterfeiting, parallel trading, and pilferage while enabling real-time consumer engagement to gain vital consumer insights. The TrackMatriX® bespoke anti-counterfeit solutions come in the shape of machine readable (including smartphones) QR codes and NFC tags.
Using TrackMatriX®, cosmetics companies will be able to monitor high-value product flows, gain deep consumer and supply chain insights / data sets, and leverage automatic reporting of counterfeiting attempts.
The platform provides brand owners deep consumer and supply chain insights regarding their cosmetics like real-time GPS location, scanning frequencies and even suspicious activity alerts. Meanwhile such data is also transferable to complement the client’s CRM/ERP/POS systems, thereby adding further value to the client’s consumer database.
TrackMatriX® Geo / Lock / Cycle
These are advanced security QR codes or data carriers. These codes contain overt and covert (Lock) information about the product that can be accessed by scanning the code. Once scanned, consumers arrive at a landing page that could include a link to the company website, a digital coupon, an event invite, or any other engagement tool that the brand desires.
TrackMatriX® NFC
It allows for a secure form of data exchange which can be used to authenticate individual products. Consumers can obtain different kinds of product information prior to opening or after opening (e.g. products specification, location tracking, storage temperature, or any other vital information). It uses thin, flexible NFC tags which are integrated into packaging, that readily identifies tampering or counterfeiting.
Clients
Use Cases
High-Security Labels + TrackMatriX®:
South Korean-based cosmetics brand company
Problem
- Readily-available fake products being sold on multiple platforms
- Fake products being sold at a “discounted” / very cheap price
- Local markets selling the products as “Class A” or “same product but cheaper”
- Counterfeits enter authorized sales channels (i.e. beauty salons, retailers)
- Customers unknowingly buying counterfeits since it’s cheaper
- Distinguishing between real and fake products
- Figuring out diversion and parallel trading
- Increasing customer engagement real-time
- Monitoring the customer behaviors across geographies in real time
Solution
- High Security Anti-Copy Features Labels
With our experience as a security printing expert, we know that overt, covert and forensic multi-level security features applied by NanoMatriX will diminish counterfeits. We offer an extensive variety of security technologies and these features are extremely difficult to be copied by counterfeiters.
Marketing relevant data including geographic and behavioural information are collected and can be analysed through the TrackMatriX® Insights. The scalable track & trace system is cloud-hosted and secured to authenticate products and can engage with consumers. Using these NanoMatriX services, the consumer can make accelerated decisions to make additional purchases.
The analytics data can be transferred to and thereby complementing the client’s ERP/CRM/POS database for further use.
Results
The brand was able to fight its counterfeiters and was able to derive invaluable data from consumer engagement. The brand now has these tools to protect its brand:
- Multi-level security for brand protection
- Dynamic real-time consumer engagement
- High security anti-copy features
Contact Us
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852 2523 9959
