Product Piracy & Fraud Protection Technology
Securing Excellence: Egon Müller Scharzhofberger's Partnership with YoY® ESG Cloud.
The Challenge.
Egon Müller Scharzhofberger, crowned European winegrower of the year 2023, crafts wines that are savored across the globe. With such international acclaim, the challenge of protecting their high-value wines from product piracy and fraud became more pressing. The brand's exceptional reputation made it a target for counterfeiters, a global issue that transcends borders. The risk was highlighted by an incident where authentic paper labels were stolen, presumably to be used on fraudulent bottles, threatening the trust and heritage of the Egon Müller name. This widespread problem of product piracy called for a robust, innovative solution to secure the integrity of their wines wherever they traveled.
The Solution.
Global Scale of Counterfeiting
The trade in counterfeit and pirated products is estimated to amount to as much as 509 billion $, about 3.3% of world trade.
Source: Counterfeiting and piracy in 2021 – the global impact Danny Grajales Pérez-y-Soto International Chamber of Commerce 11 May 2021
Lost Revenue for Brands: Brands are the primary victims of counterfeiting, as they lose revenue when consumers purchase fake products. The estimated annual loss to brands due to counterfeiting is $300 billion to $600 billion.
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The Results.
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The Clients.
Luxury watchmakers, whose timepieces are often replicated by counterfeiters, can employ this technology to ensure each watch's provenance. High-end fashion houses, too, facing similar threats, can leverage NFC tagging to affirm the authenticity of their garments and accessories. Even in the technology sector, where knock-off electronics are prevalent, brands can utilize YoY® to protect their products and brand reputation.
Artisans and producers of fine foods, such as exclusive chocolates or aged spirits, also stand to benefit from this solution. By ensuring the authenticity of their products, they can maintain the integrity of their craft and the trust of their patrons. In essence, any brand for which exclusivity and authenticity are core to their value proposition can enhance their product security and customer confidence with YoY® ESG Cloud’s technology.
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Impact on Brand Reputation:
Counterfeiting can damage a brand's reputation and erode consumer trust. This can lead to a loss of sales and market share.
The counterfeiting market is growing at an estimated rate of 7% to 10% per year.