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Anti-Counterfeiting, e-Commerce and the
Export Market Consumer Building the Framework
Presenter: Hollis Ashman University of Melbourne
On behalf of Melindee Hastie
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Research Streams
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• Dealing with RISK Assessing Category Risk against a Database for Anti Counterfeiting
• Consumer PERCEPTION
Validating the Impact of Anti Counterfeiting through e-Commerce
• Building an adaptive STRATEGY OF OPTIONS
A Strategy Map for Anti Counterfeiting
Agenda
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• Counterfeited products increasing risks to Chinese health and safety.
• Escalating demand for Anti-Counterfeit Packaging & Tracking Technology (ACP).
• Market expected to reach US $62.5 billion globally by 2020.
• Asia Pacific region projected as fastest growing area (estimated. CAGR of 18.1%, 2015 to 2020).
Source. www.alliedmarketresearch.com
Background
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• Channel News Asia (Feb. 2014)
– 1,200 tons of counterfeit and substandard foods
– 430,000 litres of counterfeit beverages seized across 33 countries.
– Oil, vinegar, biscuits, and chocolate bars to fake spices, condiments and substandard dairy products.
• Wine industry experts estimate 20% of wine bottles sold worldwide are counterfeit.
• In 2013, the Chinese Ministry of Public Security reported that the counterfeit products seized and destroyed included:
– Food and beverages 5,000 tonnes.
– Drugs and tablets 2 billion tonnes.
– Pesticides, fertilisers & agricultural seeds 3,100 tonnes.
– Personal care products, machinery and electrical products 53 million tonnes.
Source: “China police crack down on counterfeit goods,” Channel News Asia, August 10, 2013.
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The Project
ID Key
Factors that
Define
Effectiveness
Review IP
Database -
Anti C Tech
ID Potential
Market Value
for C-feiting
ID Present
Technologies
Review via
Effectiveness
Index for bundle
options
Build Virtual
Anti
Counterfeiting
Prototypes
Test with
Consumers
BUILDING THE FRAMEWORK
Test Framework with
key SME’s and
Suppliers
TESTING THE FRAMEWORK
ID Ease of Use ID Key Gaps
ID Key Design Parameters for Authenticity
Pre
sen
t Te
chn
olo
gy
Futu
re
Tech
no
logy
Mar
ket
Imp
act
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Effectiveness Factors:
• Can’t be Duplicated
• Dynamic
• Dependable
• Single use
• Covert
• Overt
• Remote
Review of 10.000 Anti-Counterfeiting Patents
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Cost Level/ Complexity
Impact
What's the problem you are solving
Who Needs Information
Chain Substrate Result
Cost: Low
Medium
High
Complexity: Low
Medium
High
Producer
Consumer
Shopper
Exporter
Retailer
…..
Flex, plastic
films
Ridged plastic
Carton board
Paper
Corrugated
board
Foils
Metal/ Tins
Glass
Effectiveness: Low
Medium
High
Features: Can’t be Duplicated
Dynamic
Dependable
Single use
Covert
Overt
Remote
……
Brand Value/ Category
Geography
RFID
Bar Coding
Holograms
Inks
Electronic
Physical
…
Shelf Stable,
Chilled,
Frozen,
Ecommerce,
Direct export
Food Category ( Cherries, Coffee, Bacon, etc.)
Freedom to operate? Market issues?
e.g. shelf life for counties with
limited refrigeration
Anti-Counterfeiting Packaging Search
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The database search shows us what present technology fits against the factors of choice.
Factors of choice
Technology that fits
Search Database for Present Technology that Fits
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• Overall Questions – How prevalent is A/C for your category?
– What A/C efforts have you used in the past?
– What was the outcome?
– What do you do now? What are you considering?
– How do you see the value and the impact for your business?
• Impact on Sales?
• Impact on Brand reputation?
• Impact on Insurance?
• Who should pay for it? (Producer, Retailer, Consumer)
– If A/C is not used, why? (i.e. what barriers are there to use?)
• Additional Questions – Level of interest in export?
– Looking at creating New Brand or Using Present Brands?
– Do they want to own the solution or have a 3rd party provider?
Test
Framework
with key SME’s
and Suppliers
ID Ease of Use ID Key Gaps
Developing a Tailored Brief for what an SMS wants to achieve
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Anti-Counterfeiting, e-Commerce and the
Export Market Consumer Testing the Framework
Caroline Francis University of Melbourne
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• Counterfeiting - Global industry est. 1.7 trillion US dollars.
• Counterfeit goods flourish through online platforms such as Alibaba, Taobao & Tmall Global.
• According to China Daily, regulators inspected over 29,000 e-commerce websites and deleted over 7.14 million illegally-listed items in 2012 alone.
• Emerging businesses find their brands pre-claimed or modified in the first-in-first-served legal system.
http://www.businessinsider.com.au/
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• Hard to distinguish between real and fake.
• Traditional Shopping Cues Lost making judgment difficult.
• Chinese e-Trust is damaged consumers on high alert.
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Millennial Chinese e-consumers are tech savvy and willing to research and engage companies on a more intimate level to assess risk prior to purchase
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THE ELEMENTS OF TRUST
• Rousseau et al. (1998) Intention to accept Vulnerability
• Taddeo (2009) Risky Investment
• Luhmann (1979) Familiarity, Expectation, Risk-taking
• Deutsch (1960) Relationship of Mutual Trust
• Doney, Cannon (1997) Exchange partners Credibility
• McKnight et al. (1998) Initial Trust - trustor having little to no knowledge of the trustee eg. Emerging businesses.
• Siau and Shen (2003) e-Trust - hard to obtain,
extremely fragile (1) Information Gathering and (2) Reward Attraction.
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• Anti-Counterfeiting technology (A-CT) can strengthen security protection within a supply chain however Counterfeiting will still be operating in parallel.
• Applying the right User-Centred A-CT can empower consumers with the ability to distinguish genuine products and to select with confidence, prior to purchase.
• 3 Pillars of User-Centred A-CT:
Complete Transparency - key to trust.
Playful Engagement –from anxiety to fun.
User-Centred - security validation.
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http://banknotes.rba.gov.au/banknote-features/#-new-five
Complete Transparency - key to trust. Playful Engagement – from anxiety to fun. User-Centred - security validated.
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“What will help me to decide which user-centred Anti-counterfeit technology is going to reduce risk and increase perceived trust with my e-consumers?”
Q
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Working with a Wine Industry Partner
Online Virtual Prototypes
Aim:
To identify Anti-counterfeiting Technology that has the greatest impact on consumers e-trust?
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Digital Connection with consumers allowing them to get feedback and extra value online
QR codes
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Intricate Patterns, Textures and Hidden Score-marks
Deters Label reuse and Re-engineering
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Thermochromic Inks Heat changes the colour
Colour returns back
Delights The consumer with innovative engagement and authenticates the product
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Holographic Seals
Identifies Tamper evidence and establishes a seal of recognition
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Destructive Layered Packaging
Protective Identity layering makes counterfeiting difficult with new designs changing often
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Working with a Wine Industry Partner
Chinese consumer panels
Qualitative Multivariate Analysis (QMA’s)
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TRUST
DOUBT
EVERYDAY ADDED- VALUE
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Next Steps:
• Virtual Prototypes of Industry Partner’s Products:
• Applied key Anti-counterfeiting tech
• Playful engagement attributes
• Online open transparency
• Cross cultural study of Australian and Chinese online consumers perceived trust and risk assessed against AC-T.
• Develop e-Commerce strategies for market impact.
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Contact Us
Partner with the University of Melbourne where we can work together to reveal key market insights that reduce risk and increase e-consumers perceived trust prior to export.
Hollis Ashman Director of Engagement [email protected]
Caroline Francis PhD Researcher [email protected]
www.foodvaluechain.unimelb.edu.au