Hologram Manufacturers Association of India

The Indian Hologram Industry is largely governed by the Hologram Manufacturers’ Association of India (HoMAI). Almost all the leading Hologram Companies in India are Members of this association.

HoMAI also has a program called the HOLOGRAM ROSTER where Member Companies compulsorily get their customers’ Hologram Designs/Samples registered.

The Registration is a `paid service’ and once the Member Company fills up and sends the Hologram Registration From to HoMAI along with the Hologram Design & Samples, a computer scans all the data/images and stores it in the database.

Now if a counterfeiter approaches a Member Company to make a counterfeit Hologram, the Member Company can immediately check with the HoMAI central database as to if the same or similar Hologram was made earlier by any other Member Company.

If the Hologram has been made before, the Member Company immediately sends an `alert’ to HoMAI on the attempt to make a counterfeit Hologram. The HoMAI then forwards this lead to the concerned authorities which follow the lead to try and nab the counterfeiter.

This has proven to be a great tool for legitimate brand owners as well as Hologram manufacturers to check illicit attempts at counterfeiting.

The International Hologram Manufacturers’ Association (IHMA) also has a similar service called the ‘IMAGE REGISTER’.

• COUNTERFEITS are fakes clandestinely produced by someone other than the legal owner of the real or original product, name, logo or trademark. They are produced to look exactly or similar and sold like real products. They deceptively resemble the original product name, packaging, graphics/ colour scheme, name/address of the genuine manufacturer in total or near total.
• PASS-OFF products are look-alikes which use similar sounding names or similar spelling, similar looking packaging or color schemes or designs to deliberately mislead and cheat the innocent consumers into believing that they are buying genuine products. There may be slight changes to avoid being categorised as legally counterfeits or not to violate trademark and copyright laws.
• MISBRANDED products are an imitation or a substitute or resemble in name of the genuine product
• DOWNLOAD: Suspected counterfieting attempt [report.pdf]

With the advancement in printing technology counterfeiters have never found difficulties in counterfeiting any product. Counterfeiting is the biggest problem facing the industries- eroding not only sales and revenues, but also compromising brand equity - ultimately leading to eroded consumer confidence. There is a need for a robust and sophisticated form of security containing various multi-layers. Fortunately for manufacturers, there are options available like holograms or Optical Variable Devices. Since 1989, Holograms have proven a highly effective overt solution and the latest generation of holograms, is exceptionally versatile and secure, since they can overt, covert & forensic feature at one point. Today, when many technologies are able to authenticate documents or products, like OVI and security printing techniques such as guilloche patterns and fine line designs, all offering first line defense and provide instant verification, then question arise why HOLOGRAMS?

1. Uniqueness of Hologram Technology (Impossible to copy): “Uniqueness is inherent in the very process of holographic recording. If the same holographer but at two different points of time or if two different holographer but at same point of time, were to carry out holographic recording from “the positive” of each layer, minute examination will reveal subtle differences between the  two version of the same hologram created by them. Thus, it is impossible to make an exact replica of the hologram and therefore it is regarded as virtually impossible to copy.   

2.Hologram’s provide three layers security: With the advancement in technology, Hologram is the only technology which can provide overt, covert and forensic feature at a single point of time and also the biggest strength of hologram lies in it’s flexibilities of mixing with other technologies.   

3. Hologram enhances the security of the security printing - In last 20 year’s hologram have proved itself as the best overt technology against counterfeiting. World wide currency and visa printing is considered to be the most high level security printing, at present may countries are using hologram in currencies and visas in spite of high level security printing and this manifest that hologram enhances the security of the security printing.    

4. Unseen is Unsold – Hologram enhances brand image & visibility - Unseen is unsold, quips one expert in shelf psychology. Today, In India, where supermarkets chains are increasing day by day, some 30,000 items fight for a shopper’s attention on an average trip to the supermarket. Research shows that nearly two-thirds of those items are not noticed at all. Thus there is a great need for creative ideas and unique packaging to make the brand noticeable. Holography adorns the packages around the world by providing an added dimension of distinctiveness and BRAND IDENTITY.  [The success of the best selling issue in the history of National Geographic magazine was attributed to its holographic cover].   

5. Higher Value Addition - Customer perceives higher value addition, since holography provides differentiation and shelf appeal. Holographic images can “move” and “speak” to consumers through optical motion, and packages. [In 1999, Colgate Palmolive recommended using a holographic package to break through shelf clutter, grab consumer attention and establish the presence of new product in the market].   

COUNTERFEITING IN INDIA

Sources:
http://www.financialexpress.com/news/counterfeit-auto-parts-to-touch-6kcr-mark/426164/http://www.business-standard.com/india/news/counterfeit-products-dog-fmcg-companies-too/346428/

COUNTERFEITING affects us all:

• Permeates almost all of legitimate businesses & industry
• Among the fastest growing global economic crimes — second only to drug trafficking or dealing in illicit firearms. The commercial crime is growing faster than international trade.
• Virtually a parallel market — growing 8-10% yearly - faster than int’l trade.
• Frequently plays a part in laundering of drug money.
• Has developed into a sophisticated network of organized crime & terrorism.
• Often leads to human tragedies

COUNTERFEITING RESULTS INTO A HUGE LOSS:

• Of jobs in the genuine segments
  - Auto industry could employ thousands of new workers, if the counterfeit products could be eliminated.
• Of huge Tax Revenue to Govt.
  - Rs 900 Crores in FMCG sector alone
  - Counterfeiters may charge customers excise/ sales tax, but generally retain it.
  - Counterfeiters pay only a fraction of true income tax liability, if they pay any at all.

COUNTERFEITING:

• Associates genuine producers with substandard or dangerous products
  - Manufacturer’s good name is damaged
• Demolishes the brand image - Customers shun brands being counterfeited - if there is any adverse publicity - 85% of those who stopped using a famous brand of bearings did so due to the prevalence of their counterfeits, which adversely impacts their decision to purchase even other brands now — according to the recent market survey.
• Destroys the industry on which it preys, and rips it off by a massive loss of sales to the genuine producer. - Is like cancer - slow & unnoticeable at first.

COUNTERFEITS :

• Endanger public health & safety
• May not comply with Safety Standards.
• Hurts Consumers
  - Consumers risk inferior performance, dangerous/fatal consequences - including equipment failure, shock/ fire risks

• Air crashes & Motor accidents with disastrous consequences attributed to duplicate/ spurious parts.
• Counterfeit or spurious medicine, baby foods, liquor, cosmetics, detergents, spices, tea, edible oils & other items of human consumption fatally affect people.
  – They have caused stomach ulcers, blindness, paralysis, deaths.
• Counterfeit toys have caused serious problems for children.
• Counterfeit shampoo has caused hair loss
• Counterfeit clothing is generally quite shoddy and could even be dangerous
  -”Replica” kids clothing is usually not flame retardant & can present a fire hazard.
• Counterfeit sunglasses are generally not shatterproof & often have no ultraviolet protection.
• Counterfeit household electrical appliances & parts pose greatest potential risk of fire and shock hazards. Light strings, electrical decorations & accessories, other electronic goods, fans, extension cords, lamps, light fixtures, night-lights, and computer power supplies etc.
• Issuing authorities of genuine documents often unable to honour their own valuable documents due to their counterfeiting. For example: Bills of Lading, Documentary Credits, Cheques/ Drafts or other written contracts, Certificates of Origin, Academic Degree/ Diploma/ Marks Sheets, Tax Certificates, etc.

The fast moving brand products, important trade documents, and the academic certificates are amongst the worst affected by the counterfeiting menace, which affects the society in general.

STAY AHEAD IN THE BURGEONING GLOBAL COMPETITION

Enhance your Brand Image!

YOUR BRAND VALUE IS:

• AN INTANGIBLE ASSET
  The Goodwill (A Golden Goose),
  The lifeblood of the company
  Of genuine economic value - can be many times of the balance sheet value
  Creates influence on a market - speeds up the time to peak sales
  A part of market capitalization - financial representation of ‘how a business is valued by its shareholders’
• A RELATIONSHIP - between You & the Buyer

YOUR BRAND VALUE BENEFITS:

YOUR END CONSUMERS
Guarantee of quality, way to choose, added pleasures.
YOUR RETAILERS
Store traffic & premium prices - the benchmark for private label.
YOU, THE MANUFACTURER
The means to compete, your strategic muscle, and security of earnings.
YOUR SHAREHOLDERS
Relates to share price performance, and the quality of earnings.

YOUR BRAND IS VALUABLE ONLY WHEN PROTECTED.

If you don’t take sufficient steps to protect your brand and the counterfeiters are allowed a free rein, the value of the brand will rapidly erode.
Huge sums of money may be at risk in terms of lost sales by not defending your key products.
Counterfeits of your product could damage your brand permanently
Name once damaged, is very expensive to repair, both in terms of time & money.
You may be able to put the cracks together but will never be quite sure of it.
Rebuilding cost could be 3 times or more of what it cost you earlier to establish your image.

Brand Protection, is therefore a must

Being even a legitimate producer, you could be liable for a counterfeit of your own product that may have caused harm or loss to the customer –if he establishes that you could have anticipated the counterfeiting but failed to take steps to prevent or reduce it.
Legal responsibility and obligation, therefore, rests with you, the genuine manufacturer. You must take preventive action to protect your products from being counterfeited.
If your products have been counterfeited, the Courts may ask you:-
o What are you doing to protect your product?
o Was your products’ counterfeiting and consequent injury foreseeable?
You have to establish a record of protecting your product and to reduce the risks of costly damage claims in product liability cases

Brand protection is a marketing function- not an added ‘product cost’

To be competitive, don’t reduce costs by simply cutting in many areas to save a small percentage. Don’t ignore the developing & nurturing your brand value.
It takes a very nominal investment and simple effort to protecting it.
Don’t see it as money wasted, or an advertising expenditure — a small ’saving’ may put your whole project in jeopardy, risking its very survival.

SOME have been heard saying, “I can’t keep up with demand. Duplicates only make my name more famous specially in the markets where I do not sell”. But the continuing damage to their brand image will kill their name and consequently the total sale.

Paradigm shift in thinking is required,� Therefore

From cost minimization to benefit maximization
Improved management will result in better growth.

A fraud preventive security & authentication process is vital for brand owners, buyers, sellers, banks/ financial/academic institutions and Govt. Tax Collection Agencies