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

Customizing Anti-Counterfeit Solutions for High-Risk Markets

You’ve secured your product.
You’ve set up authentication.
But somehow, fakes are still slipping through—especially in markets like India, Africa, and Latin America.

Why?

Because one-size-fits-all protection doesn’t work in a world where every region plays by different rules.

In high-risk markets, the threats aren’t just common—they’re constantly evolving. For global brands, the key isn’t just stronger protection. It’s smarter, localized protection that meets people where they are.

Your brand may be global, but the challenges you face aren’t:

India – Counterfeit medicines often enter through informal supply chains in semi-urban and rural regions.
Africa – Fake electronics and unauthorized imports disrupt trusted retail networks, often due to weak enforcement.
LATAM – Counterfeit FMCG products share shelf space with genuine ones, confusing customers and weakening trust.

Each region needs more than just a label or code—it needs context-aware solutions that align with how local consumers buy, verify, and trust.

You care about your product. Your customers should feel that—whether they’re in a remote village or a bustling market.

A generic solution may look good on paper, but in practice, it often fails:
1. Assumes strict enforcement exists everywhere (it doesn’t)
2. Relies on stable internet (not always available)
3. Expects every consumer to understand how to verify (many don’t)

If your strategy doesn’t meet local realities, it can’t truly protect your product—or your promise.

Real Protection, Tailored for India, Africa and Latin America

In India’s semi-urban and rural areas, simplicity is key.

A breakable seal, paired with a GS1-compliant scannable QR or SMS code, allows patients to verify authenticity in seconds—even without an app.
Pharmacies use a lightweight Track & Trace dashboard to log stock movement and report suspicious entries instantly.
Multilingual alerts ensure the system works for non-English speakers.

Africa’s mobile-first environment presents unique opportunities:

Brands use scratch-off serial codes verified through WhatsApp—no separate app or internet login required.
Distributors are equipped with basic handheld scanners or mobile verification tools to validate products at every checkpoint.
Real-time alerts flag suspicious batches, enabling fast containment.

In Latin America’s open markets, brand trust is everything:

Products carry tamper-evident labels embedded with dynamic QR codes that offer rewards or authenticity tips upon scanning.
Customers can instantly check if a product is genuine while engaging with the brand.
Campaigns create awareness, making verification part of the everyday purchase habit.

What Should You Be Asking?

What’s really happening in each of your key markets?
Are you protecting your riskiest product lines first?
Can your end customer easily verify your product?
Do your tools adapt to local behaviors and tech access?

If you’re unsure—it’s time to rethink the approach.

The Difference It Makes

Fakes drop where protection fits the environment
Consumers feel seen and empowered
Local teams feel equipped, not overwhelmed
Your brand stays respected and trusted, even in tough markets

This isn’t about spending more—it’s about spending smarter.

When your anti-counterfeit strategy aligns with real market conditions, you do more than block counterfeiters—you build long-term trust.

Because in the end, effective protection isn’t just a technical system.
It’s a message: We understand your market. We respect your safety.

At Lasersec Technologies, we design region-specific anti-counterfeit solutions that blend holographic security, track & trace, and phygital engagement tools. From SMS-based verification to WhatsApp-integrated checks, we help global brands stay a step ahead—with no guesswork.

How Tamper Evident Packaging and Track & Trace Strengthen Anti-Counterfeiting Measures

You trust the seal. So does your customer.
But what if both can be faked?

In today’s hyper-competitive and counterfeit-prone market, trust is no longer a given—it must be earned, secured, and verifiable. One compromised product doesn’t just mean financial loss. It means broken trust, customer complaints, and reputational damage.

For quality assurance teams, brand managers, and packaging heads, the challenge is clear: protecting your product is protecting your brand.

The Dual-Layer Security Model

Forward-thinking brands are now adopting a two-pronged security approach: Tamper-Evident Packaging + Track & Trace Technology
One is a physical deterrent. The other is a digital watchdog. Together, they form a resilient shield against fraud.

1. What These Tools Actually Do

Tamper-Evident Packaging

These packaging elements display clear signs of interference.
Think broken seals, VOID labels, or peeled films—immediate red flags for both consumers and supply chain teams.

2. Track & Trace Systems

Every unit is assigned a unique serialized identity, often through GS1 barcodes or QR codes.
Each scan updates the unit’s journey from production to retail, enabling full traceability and real-time monitoring through secure platforms.

Bonus: Advanced T&T systems now integrate with cloud-based dashboards, AI-based alerts, and mobile authentication tools.

Relying on only one method is like locking your front door but leaving the windows wide open.

Tamper seals can be replicated.
Digital codes can be copied.

But when combined:
Physical evidence + Digital validation = A failsafe authentication system that’s far harder to breach.

Real Time Impacts

Pharmaceuticals: A sealed pack and a scannable QR code validate medication at the pharmacy. Brands using serialization aligned with DSCSA/EU FMD have reduced counterfeit reports and met compliance faster.
Electronics: With encrypted QR codes and tamper seals, brands can detect unauthorized resellers and trace diversion to the source. Less warranty fraud and tighter market control.
FMCG & Personal Care: A beauty brand added tamper-evident seals and scannable codes after fake products emerged online. 38% drop in complaints, increased repurchase rates, and renewed customer trust.

Why This Approach Works

Visible Proof:
Customers know if the product has been tampered with.
Digital Traceability:
Brands know exactly where and when a breach occurred.
Rapid Response:
Identify and contain supply chain risks in real time.
Compliance-Ready:
Stay ahead of evolving global regulations.
Brand Loyalty:
Build trust through transparency, safety, and action.

You don’t need a massive overhaul.

Start small like:

Apply tamper-evident holographic labels to premium or high-risk SKUs.
Add QR codes connected to a secure backend system.
Educate your distributors and customers on scanning and verification.

Then, scale as your confidence and ROI grow.

Your Packaging Is More Than a Box

It’s your handshake, your promise, your presence in places you can’t be.

With tamper-evident packaging and track & trace working in tandem, your packaging becomes a:

Silent Guardian
Smart Communicator
Powerful Brand Asset

Let’s Build Smarter, Safer Packaging – Together

At Lasersec Technologies, we specialize in merging physical security with digital intelligence. Our solutions are tailored for pharma, electronics, FMCG, automotive, and consumer brands looking to stay ahead of counterfeiting risks.

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.

Partner with Us to Build a Phygital Future

Phygital Authentication: The Future of Brand Security in Every Industry

By Manish Garg

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.

Terrifying Fake Antibiotics: The Proven Packaging Blueprint That Stops Them

By Sonia Specialist

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