The Impact of Counterfeit Apparels on the Global Economy

Apparel, Problems, Counterfeit, Fake, Garment, Duplicate, Apparel Industry, Clothes

The garment industry is one of the most heavily counterfeit industries in the world. The International Trade Centre estimates that the $461 billion sector of fake clothing and shoes makes up around 7% of all counterfeit items sold globally. The difficulties that clothing manufacturers encounter are varied, ranging from the effect on their brand to the monetary loss of sales.

The issue of counterfeit goods in the clothing sector has grown significantly. It will undoubtedly have a negative effect on how well clothes function and how well they are made. The amount of clothing that is being counterfeited is astounding; some estimates put the figure as high as 30%. These goods frequently have a worth of above $2 billion!

Garment manufacturers have to deal with counterfeit clothing challenges on a regular basis. Consumers who buy cheap knockoffs aren’t aware that they are purchasing fake products that won’t stand up to the test of time. If a pair of branded jeans loses their shape or fades within six months, people will settle for replacements instead of spending more money on new ones.

In recent years, fake garment sales in India have sharply increased as knockoffs of popular brands flood the market. These fake garments usually feature shoddy workmanship and inferior materials, which leads to issues like fading and tearing after just a few usage.

Customers most frequently spot fake goods by their prices, especially when it comes to high-end brands like Gucci or Louis Vuitton. Since original goods need more money to produce, their cost is often higher than that of imitations (such as using expensive materials). This is a huge challenge for manufacturers, as fake products has damage their reputation and bottom line.

There are a few ways to combat counterfeit products:

Educate consumers on the difference between genuine and fake products.
Manufacturers need to be more vigilant in their quality control. This includes ensuring that all products are properly labeled and that no counterfeit products slip through the cracks.
Focus on producing higher quality garments that are more difficult to replicate.
Collaborating with law enforcement to take counterfeiters to task.

Despite the tremendous difficulties faced by the clothing industry, prevention is always the best option.

Manufacturers of clothing must have robust security mechanisms in place to safeguard their goods in order to do this. A few anti-counterfeit solutions, such as those with tamper-proof packaging, product tracking, and authentication capabilities, can help address the issue.

1. Tamper-proof packaging:

Aids in keeping track of inventories, preventing product damage or tampering while in transportation, and ensuring on-time delivery to clients.

2. Product Packaging:

Utilize technology, such as blockchain technologies, to track products, such as clothing, from the point of manufacture to the point of sale. This can be used to determine when and where fake clothing is being sold.

3. Authentication:

It helps to make sure that your products are real and that your clients are receiving what they are expecting.

With these characteristics, they can be certain that customers are receiving what they expect from fashion products and that they are safe and secure.

Counterfeiting remains a persistent issue, making it crucial for preserving the integrity of your brand to be a top priority.

Reach out to us to discuss your specific needs and concerns.

Shield your business with our advanced technology solutions by us.

About Lasersec Technologies

We are one of the top and most reliable producers of anti-counterfeiting goods, as well as an innovator who continually identifies any need from many facets of the apparel business and offers workable solutions.

Based on the needs of a garment industry, we create and adapt product, sustained research and development carried out by a competent team of experts assisted by well-equipped facilities, staying up to date with cutting-edge technology, and developing ground-breaking new goods and applications.

You can reach us via email at mktg@lasersec.in or by phone at +91 -11-45637955.

Related Blogs

Combating Counterfeit Antibiotics-Packaging Innovations That Work in Tier-2 and Rural Markets

Imagine a patient in a small town buying antibiotics with hope for recovery, only to later discover the medicine was fake. This isn’t just a business challenge; it’s a human crisis that threatens lives and erodes trust in healthcare.

According to the World Health Organization (WHO), about 1 in 10 medical products in low- and middle-income countries is substandard or falsified, with antibiotics among the most commonly counterfeited. In India, this issue is especially severe in tier-2 and rural markets, where patients depend heavily on affordable medicines but have fewer tools to verify authenticity.

For domestic pharma companies with mass-market distribution, protecting these communities goes beyond compliance — it’s about safeguarding public health and protecting brand trust in the very markets where demand is highest.

Why Rural and Tier-2 Markets Face Bigger Risks

Medicines in rural areas often pass through long, complex distribution chains before reaching patients. With fewer regulatory checks, limited pharmacist training, and high demand for low-cost antibiotics, counterfeiters exploit every gap.

Why antibiotics?

They are the most prescribed medicines in rural India.
Counterfeit versions are easy to circulate undetected.
Fake or substandard antibiotics fuel antimicrobial resistance (AMR), making genuine treatments less effective.

The result: 
patients don’t recover, resistance spreads, and pharma brands lose credibility.

Practical Packaging Solutions That Work on the Ground

Domestic pharma leaders don’t need futuristic tech — simple, field-proven solutions can protect both patients and business in high-risk markets:

1. QR Codes for Instant Verification

With smartphone use now above 50% in tier-2 and rural India, secure QR codes allow patients and chemists to scan and confirm authenticity in seconds.

2. Scratch-to-Reveal Codes

A cost-effective feature where patients scratch a panel to uncover a one-time code, then send it via SMS for instant confirmation. Perfect for regions with poor internet but reliable mobile coverage.

3. Toll-Free Number Verification

For areas where smartphones are less common, patients can call a toll-free number, enter the pack code, and receive immediate confirmation.

4. Serialization & Track-and-Trace

For companies looking at scale, serialization (unique pack codes) with Track-and-Trace systems enables full supply chain visibility. While CDSCO already mandates serialization for exports, extending it domestically creates a powerful barrier against counterfeits.

Even the best packaging features work only if people know how to use them. Pharma companies can build trust by:

Printing clear calls-to-action on packs like “Scan to Verify” or “Scratch and SMS to Confirm.”
Training distributors, chemists, and field staff to explain features.
Partnering with health workers and pharmacist associations to promote safe buying practices.

What Pharma Companies Can Do Today

Adopt at least one low-cost anti-counterfeit feature suited to your market.
Train distributors and field teams to guide chemists on how to use these features.
Print simple instructions on every pack to drive patient adoption.
Monitor ground feedback and refine your packaging strategy over time.

Beyond Packaging: Partnerships Multiply Impact

Technology works best when paired with collaboration.

Pharma companies can:

Partner with local health workers to raise awareness.
Work with pharmacist associations to block counterfeit circulation.
Align with regulators like CDSCO — and globally with bodies like TGA and USFDA — to meet compliance while building consumer confidence.

Why Acting Now Matters

Counterfeiting in non-urban supply chains is no longer just a rural problem — it’s a nationwide risk. Ignoring it can result in regulatory challenges, lost market share, and, most importantly, lives lost.

By contrast, acting now with practical anti-counterfeit packaging creates an opportunity to:

Protect patients where they are most vulnerable.
Safeguard your brand in India’s fastest-growing pharma markets.
Position your company as a trusted healthcare partner at home and globally.

Because at the end of the day, packaging isn’t just about protecting a product — it’s about protecting people.

Moving Forward with Safer Packaging

At Lasersec Technologies, we help pharma companies design practical anti-counterfeit packaging solutions — from scratch panels and QR codes to serialization and Track & Trace.

Backed by compliance expertise and real-world field success, our goal is simple: to help you protect patients, build trust, and stay ahead of counterfeiters in both rural India and global markets.

Export-Ready Pharma Packaging- What Global Buyers Are Now Expecting

You’ve secured the order, production is complete, and your shipment is ready to move. But then, just before dispatch, your buyer asks:

“Does your packaging meet serialization and scan-based proof requirements?”

Imagine losing a million-dollar contract — not because of your medicine, but because your packaging failed to inspire trust. This is the reality many exporters face today. For global buyers, packaging has become the deciding factor between smooth delivery and a deal falling apart.

Why Packaging Standards Are Now Non-Negotiable

Global buyers are under pressure from regulators, distributors, and patients. They must ensure every product they source is traceable, authentic, and tamper-proof. That means export-ready packaging is no longer optional — it’s the foundation of international trade.

Key compliance must-haves include:

Track & Trace Systems – complete product visibility across the supply chain
Serialization – unique identifiers that meet global compliance norms
Tamper-Evident Features – seals or packaging that immediately reveal interference
Scan-Based Proof – QR codes or secure markings enabling instant authentication

Without these, buyers see risk — and in today’s market, risk means rejection. It’s not just about checking compliance boxes. Buyers want reassurance that:

Their shipments won’t face customs delays due to packaging gaps
They won’t be caught in regulatory disputes in importing countries
They can confidently show stakeholders a secure supply chain

For exporters, this transforms packaging into a proof of credibility. It’s no longer just a container — it’s part of your business reputation.

Regional Buyer Expectations: One Size Doesn’t Fit All

Every region enforces its own regulations. Understanding them isn’t just smart — it’s survival.

Region	Key Packaging Expectations	What It Means for Exporters
European Union (EU)	Strict serialization under the FMD (Falsified Medicines Directive) with database-driven verification.	Packs must be registered and verifiable via EU hub. Non-compliant shipments are rejected at borders.
United States	DSCSA (Drug Supply Chain Security Act) requires interoperability and traceability beyond serialization.	Exporters must ensure their systems “talk” with US buyers’ systems for seamless data exchange.
Middle East & Africa	High counterfeit risks demand visible tamper-evidence + secure scan codes.	Buyers expect seals and markings they can verify instantly at distributor level.

According to the WHO, 1 in 10 medical products in low- and middle-income countries is substandard or falsified — highlighting why MEA and APAC buyers demand extra layers of security.

Before shipping, ask yourself:

Does every pack carry a unique, scannable serialization code?
Is there a tamper-evident seal that cannot be replaced unnoticed?
Can my systems generate and share serialization data with buyers?
Do I have scan-based proof of authenticity ready for customs or audits?

If the answer is “no” to any of these, your packaging isn’t truly export-ready.

Indian pharma is globally respected for high-quality medicines. But as regulations tighten, packaging standards are becoming the new benchmark for trust.

Those who adapt quickly — with serialization, secure QR codes, and tamper-evident solutions — will stand out as reliable partners. On the other hand, exporters who delay risk losing contracts, not because of product quality, but because their packaging didn’t pass the credibility test.

Global buyers are no longer asking if your packaging is compliant — they’re asking how quickly you can prove it.

Export-ready packaging is now a business advantage, not just a compliance step. For exporters preparing to expand globally, investing in the right packaging solutions is no longer optional.

Because in today’s market, packaging isn’t just protecting your product — it’s protecting your growth.

At Lasersec Technologies, we partner with pharma exporters to ensure their packaging meets global serialization, traceability, and anti-counterfeit standards — helping you ship with confidence and win global trust.

Recent Blogs

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:

The physical product is authenticated first
Authenticity is verified through a secure scan
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

5 Proven Ways Phygital Loyalty Builds Trust

By Vikas Bhatnagar

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.

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