Lasersec Technologies

Counterfeiters are all over the field, and they are not leaving any business untouched. It hurts business most in this regard, is the automobile industry for more than one reason. Since its inception, the counterfeit practice has grown to become nearly equal to that of the original in many aspects.

So much so, any authorized dealer will tell you how much loss they incur because somewhere in the supply chain, the counterfeiters enter the scene and complicate the situation. More importantly, little administrative intervention or attention has been given in this regard.

Society of Indian Automobile Manufacturers or SIAM has a staggering statistics for everyone- as much as 47 percent of the total aftersales market is full of counterfeits. It amounts to somewhere roughly between 4,400 crores to 6,300 crores. Given that the total export amounts to 55,300 crores, which is a hefty amount given away to the fake dealers. Surely, it needs to stop, and it must start with counterfeit parts problem.

Fake parts are the biggest possible compromise made in this regard, but not anymore. Not only fake parts cause trouble for the market with the breakdown of customer trust, but it costs a good sum of revenue which makes it no less than a criminal offense.

Locating The Areas Of Concern

Since automobile industry is an extensive network spread across the country, it becomes difficult to track down the fake parts dealers. The dangerous liaisons between the dealers and counterfeit manufacturers are most prominent in small towns and metros. In a country as big as India, it is nearly impossible to trace the unregistered and unorganized channels, street-side vendors who sell from fly-by-night shops and self-proclaimed mechanics.

The problem is so big in the unorganized sector that local auto markets thrive on this practice to expand themselves and often gains legitimacy among certain people because they are cheap alternatives. Hence, the resistance against this has to be twofold.

First, one needs to hunt down these parasitic practices by locating their sources one by one. Secondly, the need to educate dealers and customers is more than ever nowadays. Only by simultaneously addressing these two problems is it possible to curb this growing menace. Another complaint that is often heard is that there is a little availability of original parts in distant places so cheaper and counterfeit alternatives become the order.

Fighting A Growing Concern By Law

Often, the natural assumption in this regard is that fake products are only for smaller brands since big names are not so pervasive. However, you will be surprised that names like BMW and Mercedes-Benz have a vast number of fake parts circulating all around India. In fact, while an original Mercedes-Benz product bears a code, a hologram, and the perfect ring, customers often don’t know how to differentiate the original from the fake.

More importantly, Mercedes has only 26 authorized showrooms across India, but most customers don’t know that, and they end up falling for fake products. It is only the tip of the iceberg to be honest since there are more such practices like this for many other brands.

The most problematic aspect of this practice is that these parts undergo no tests so they can break down any moment. Once fake parts are used, the lifespan of these parts get reduced, and it survives for lesser days. So begins the vicious cycle until one day, your car succumbs to a terrible accident. Obviously, there is a Trade Marks Act, 1999 that states a fine ranging from 50,000 to 2 lakhs for anyone who engages in such practice along with a possible jail time up to three years. But, that hardly seems to deter the practices.

Customers Are The Greatest Force

While it is evident that laws are rarely implemented, and there are plenty of loopholes in the system, the most considerable force of resistance can come from the consumers themselves. Smaller parts such as clutch plates, brake liners are often the easiest to copy and also, hardly detectable. Hence, such practices start from this level and then advances till it absorbs everything. Already, numerous players have come forth in this regard to educate the uninitiated about the intricacies of this fake network. Almost all companies would tell you that their customers are often clueless about brand design and holograms, but they never say anything about the fraudulent practices. Hence, brands have understood that they need to

Almost all companies would tell you that their customers are often clueless about brand design and holograms, but they never say anything about the fraudulent practices. Hence, brands have understood that they need to mobilize customers from all fronts by handing them guidebooks or giving them interactive lessons regarding the practice.

Often, customers think that counterfeit parts are cheap and it does not burn a hole in their pocket. But, they are playing with their and others’ lives without realizing it. This practice can only stop when the customers are given lessons on how fake parts look and what fake parts can do to your car. An awareness campaign, needless to say, is the need of the hour.

Fighting It Together

By joining hands with customers, automobile brands need to ensure that the dealers should also understand the dangers of this problem. Brands need to be stringent regarding this too. They need to blacklist dealers who are continuing this practice knowingly and warn the dealers who inadvertently engaged in it.

Moreover, each brand must note the fake brands that try to replace them and update their database accordingly. They should share their database with dealers as well as customers so that the clients don’t fall for them while buying. When a customer comes to buy a car, then it is imperative to teach him the basic lessons of counterfeit practices. Flimsy packaging, unclear colours, and fonts are hallmarks of such practice.

Nowadays, all big names have started implementing the holographic labels of their own to assure the customer of its genuineness. It is a commendable practice since holograms are the easiest way to tell a client that he or she can buy it without facing safety hazards. Only a combined effort from all quarters can defeat the octopus called counterfeit parts practice.

Share :

Related Blogs

Phygital Loyalty Programs: Building Consumer Trust through Genuine Rewards

A shopper picks up your product from a neighborhood store. They scan the pack, expecting a reward — loyalty points, cashback, or a small surprise.

But what if the same reward has already been claimed using a counterfeit version of your product?

For FMCG brands operating in high-volume, price-sensitive markets, this is no longer a rare edge case. It is a growing reality that is quietly forcing loyalty programs to evolve.

Today, phygital loyalty programs are emerging as a critical solution — ensuring that consumer rewards are unlocked only through genuine, authenticated FMCG products.

Loyalty in FMCG Is Built on Trust, Not Just Rewards

In fast-moving consumer goods, loyalty is driven by habit, availability, and confidence. Consumers repeatedly choose brands they trust — brands that feel fair, reliable, and transparent.

However, when loyalty programs can be exploited:

  • Genuine consumers feel cheated
  • Counterfeit products benefit from real promotions
  • Marketing spends increase without proportional growth
Over time, promotional excitement turns into doubt. And once trust erodes, loyalty weakens.

This is why FMCG brand loyalty programs must prioritize fairness and authenticity, not just engagement metrics.

Why Traditional Loyalty Programs Fail in FMCG Environments

Most conventional loyalty programs rely on printed QR codes, alphanumeric codes, or digital coupons. While these methods increase participation, they introduce serious vulnerabilities.

Common issues include:

  • Codes being copied, shared, or resold
  • Multiple redemptions from a single code
  • Rewards claimed without a genuine product purchase
For FMCG brands running nationwide or multi-country campaigns, this results in:
  • Misallocated rewards and promotional leakage
  • Inaccurate campaign performance data
  • Increased scrutiny from finance and audit teams

The challenge is not loyalty itself — it is verifying who truly deserves the reward.

What Is a Phygital Loyalty Program?

A phygital loyalty program connects physical product authentication with digital consumer engagement.

Unlike traditional systems, phygital loyalty ensures that:

  1. The physical product is authenticated first
  2. Authenticity is verified through a secure scan
  3. Rewards are unlocked only after verification
By linking product authentication and loyalty rewards, FMCG brands ensure that incentives flow only from genuine products.

This approach builds directly on track and trace authentication systems and transforms loyalty from a volume-driven tactic into a trust-driven strategy.

A Better Loyalty Experience for FMCG Consumers

From the consumer’s perspective, phygital loyalty feels simple yet reassuring.

A single scan provides:

  • Instant confirmation that the product is genuine
  • Access to loyalty rewards or offers
  • Brand-backed product information and guidance

That moment of reassurance matters.

In everyday FMCG categories — food, beverages, personal care, home essentials — this subtle confirmation strengthens confidence and encourages repeat purchases.

Authenticity becomes part of the consumer experience, not an afterthought.

How Phygital Loyalty Helps FMCG Brand and Marketing Teams

For internal stakeholders, phygital loyalty programs deliver measurable value.

They help FMCG brands:

  • Protect promotional budgets from misuse
  • Ensure rewards reach genuine buyers
  • Improve campaign ROI measurement
  • Capture clean, reliable engagement data
When loyalty rewards are tied to secure product authentication technologies, campaigns become auditable, defensible, and scalable.

Loyalty stops being a risk — and starts becoming a strategic asset.

Counterfeiting Is a Mass-Market FMCG Problem

Counterfeiting is no longer limited to premium or luxury categories. In FMCG supply chains, counterfeit products move quickly and blend easily with genuine stock.

When promotions are attached to unauthenticated products, counterfeit circulation accelerates.

Phygital loyalty programs help FMCG brands:

  • Discourage counterfeit participation in campaigns
  • Reduce misuse of brand-funded incentives
  • Reinforce trust at the point of purchase

This is particularly critical in emerging markets across Asia, Africa, the Middle East, and Latin America, where volume, price sensitivity, and complex distribution networks increase risk.

How Lasersec Technologies Enables Phygital Loyalty

At Lasersec Technologies, we help FMCG brands integrate product authentication with loyalty programs through scalable phygital solutions.

Our approach combines:

  • Physical security features embedded into packaging
  • Secure scan-based authentication technologies
  • Digital systems that integrate seamlessly with loyalty platforms

These solutions are built using advanced anti-counterfeit packaging technologies and digital validation layers.

The result is a loyalty ecosystem where rewards are unlocked only through genuine FMCG products — protecting consumers, campaigns, and brand equity.

How Phygital Loyalty Helps FMCG Brand and Marketing Teams

For internal stakeholders, phygital loyalty programs deliver measurable value.

They help FMCG brands:

  • Protect promotional budgets from misuse
  • Ensure rewards reach genuine buyers
  • Improve campaign ROI measurement
  • Capture clean, reliable engagement data

When loyalty rewards are tied to secure product authentication, campaigns become auditable, defensible, and scalable.

Loyalty stops being a risk — and starts becoming a strategic asset.

How Phygital Authentication Powers Secure Loyalty Programs

Phygital loyalty programs only work when the product itself is verified as genuine. Without secure authentication, rewards can still be misused through counterfeit products.

At Lasersec Technologies, phygital authentication is built by integrating physical and digital security into a single, connected ecosystem. This includes holographic foils, tamper-evident seals, dynamic QR codes, and track-and-trace systems embedded directly into FMCG packaging.

Each consumer scan first confirms product authenticity and packaging integrity. Only after successful verification are loyalty rewards unlocked. This prevents duplicate claims, code copying, and reward misuse linked to counterfeit products.

By connecting authentication with loyalty systems, FMCG brands create a transparent, secure, and controlled reward environment — one where incentives are triggered only by genuine products.

Counterfeiting Is a Mass-Market FMCG Problem

Counterfeiting is no longer limited to premium or luxury categories. In FMCG supply chains, counterfeit products move quickly and blend easily with genuine stock.

When promotions are attached to unauthenticated products, counterfeit circulation accelerates.

Phygital loyalty programs help FMCG brands:

  • Discourage counterfeit participation in campaigns
  • Reduce misuse of brand-funded incentives
  • Reinforce trust at the point of purchase

This is particularly critical in emerging markets across Asia, Africa, the Middle East, and Latin America, where high volumes and complex distribution networks increase exposure.

Why Phygital Loyalty Is the Future of FMCG Engagement

As counterfeit risks rise and consumers demand transparency, loyalty programs must evolve.

Phygital loyalty programs enable FMCG brands to:

  • Build long-term consumer trust
  • Reduce promotional fraud
  • Strengthen brand credibility across markets
  • Create fair, data-driven engagement systems

Loyalty is not built by giving more rewards.

It is built by ensuring that the right rewards reach the right consumers — through genuine products.

When authenticity comes first, trust follows naturally. And when trust is sustained, loyalty lasts — across products, campaigns, and years.

Partner with Us to Build a Phygital Future

Whether you’re in pharma, FMCG, apparel, electronics, or automotive, Lasersec Technologies helps your brand stay ahead of counterfeit threats. Connect with us for a consultation or demo to experience how our Phygital Authentication  solutions can transform your brand protection strategy.

Email: mktg@lasersec.in | Phone: +91-9810213127

Phygital authentication technology enhancing brand security

Spotting a fake is easy — until it’s your brand on the line.

In today’s fast-paced digital marketplace, counterfeiters are smarter, faster, and more organized than ever. They replicate packaging, clone QR codes, and even build fake websites that mirror authentic ones.

Relying on a single layer of protection is no longer enough. What brands need today is a smarter, connected, and traceable defense system.

That’s exactly where Phygital Authentication steps in — a seamless blend of physical security and digital verification that ensures every product remains genuine, trackable, and trusted.

What Is Phygital Authentication?

The word “Phygital” combines physical + digital.

It’s the next evolution in brand protection and anti-counterfeiting technology.

Imagine combining:

  • Physical features such as holograms, tamper-evident seals, or unique labels, with
  • Digital tools such as secure QR codes, NFC tags, or blockchain links.

Together, these create a two-factor authentication system for products:

  • Physical layer: Provides instant, visible proof of authenticity.
  • Digital layer: Enables real-time online verification, tracking, and analytics.
This powerful combination makes verification intuitive, transparent, and nearly impossible to replicate.

Why Every Industry Needs to Go Phygital

Counterfeiting is no longer limited to luxury or pharma — it’s now a multi-industry threat. From FMCG and automobile parts to electronics and apparel, fake products infiltrate every market, damaging brand reputation and consumer trust.

  • A consumer could unknowingly buy a fake skincare product that looks identical to the real one.
  • A patient could receive a counterfeit medicine, risking serious health consequences.
  • A dealer might end up stocking duplicate machine parts, affecting equipment performance.

Phygital Authentication helps track products from factory to shelf, offering end-to-end supply chain visibility. It empowers brands to identify, trace, and stop counterfeit products — before they reach consumers.

The Power of Combining Physical and Digital Security

Phygital Authentication strengthens brand protection through dual assurance:

  • Physical identifiers (holograms, foils, tamper seals) → provide instant visual confirmation.
  • Digital identifiers (unique QR codes, serialized data, blockchain records) → enable live product authentication and data analytics.

Result: A powerful, tamper-resistant system that ensures authenticity, traceability, and accountability across the entire product lifecycle.

Each scan tells a story — one of trust, transparency, and technology working hand-in-hand.

Beyond Counterfeit Protection — Building Consumer Trust

Phygital Authentication isn’t only about protecting brands; it’s about creating genuine connections.

When customers scan a product and instantly verify its authenticity — or receive personalized information, rewards, or thank-you notes — it turns a simple purchase into an emotional experience. This sense of assurance and appreciation builds lasting loyalty and brand trust.

In an era of endless choices, trust isn’t optional — it’s your strongest advantage.

Future-Proofing Brand Protection

Counterfeiters are evolving — but so is technology.

Phygital Authentication ensures brands stay one step ahead with scalable, intelligent, and data-driven protection.

By merging physical security features with digital intelligence, brands unlock:

  • Real-time product traceability
  • Anti-counterfeiting analytics
  • Consumer engagement opportunities
  • Regulatory compliance support

This makes it not just a security solution — but a strategic investment in long-term brand integrity.

The future of anti-counterfeiting isn’t about choosing between physical or digital — it’s about merging both.

Phygital Authentication represents the next leap in brand protection, enabling businesses to:

  • Secure every product
  • Strengthen customer confidence
  • Ensure full supply chain transparency

How Lasersec Technologies Powers Phygital Authentication

At Lasersec Technologies, we integrate cutting-edge physical and digital security to deliver true Phygital Authentication. Our portfolio includes holographic foils, tamper-evident seals, dynamic QR codes, and track-and-trace systems — all designed to create a connected, secure, and transparent product ecosystem. Each solution is customized to meet your industry’s compliance needs while strengthening brand integrity and consumer trust.

Partner with Us to Build a Phygital Future

Whether you’re in pharma, FMCG, apparel, electronics, or automotive, Lasersec Technologies helps your brand stay ahead of counterfeit threats. Connect with us for a consultation or demo to experience how our Phygital Authentication  solutions can transform your brand protection strategy.