Negative impacts of counterfeiters on a business

Are you a manufacturer of a famous product? If yes, have you considered smart supply chain track and trace systems? Such processes ensure that your goods are delivered to the concerned parties as it is, unlike counterfeited items. It is easier for counterfeiters to replace your commodity with a fake one and create various problems, as listed below. One simple solution is to avail of systems that promote supply chain visibility.

  • Loss of sales
  • Reputation at risk
  • Deal with complaints

Loss of sales: Once your competitor knows the secret to your success, they can create similar copies of products and sell at a cheaper rate. This means your sales will be negatively affected. This will decrease the profit margin of your company. Customers may appear smart but they are not as intelligent as you think. They can fall for traps set by counterfeiters and lose high-quality products. Fake items are almost the same as real ones. This makes it difficult for the consumer to identify your good from an artificial copy. The similarity in packaging, branding, and design of an item can fool the client and deviate their focus from your stores to theirs.

chain track and trace

Reputation at risk: This is a brainer; once the customer realizes that the delivered product is fake and doesn’t serve its purpose, they start blaming and shaming the authentic company. Unfortunately, bad news spreads faster than good news, so you are at risk of losing loyal and potential clients. When your consumers start sharing their feedback with friends and family, you will losemuch business. And if the customer decides to post reviews online, your reputation is gone for a toss. Statements like ‘this XYZ company markets high-quality goods but delivers shit’ can kill the enthusiasm of sales leads and mess up the heads of your current clients.

Deal with complaints: As mentioned earlier, an unsatisfied client will reach out to the authentic company and demand a refund without mercy. They keep showering their frustration on the customer executives who have no idea about counterfeits. The only thing an authentic entity can do is deal with the customers until a tech expert comes to their rescue by examining the returned product. This also means that the company is losing its time trying to convince customers instead of focusing on real queries related to its original products.

From the above, it is evident that companies are at risk of losing customers, profits, and good reputations due to the presence of counterfeiters in the industry. One simple solution to this problem is contacting a reliable entity that offers smart supply chain track and trace systems. Why wait? Avail of the services now!

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