In a bid to check the growing problem of fake products, Holostik India, one of the largest manufacturers of security optically variable devices (OVDs) or holograms in the world, will develop and manufacture new products and generate awareness about regulatory compliance and anti-counterfeiting measures.
According to a recent report by FICCI’s Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (CASCADE), the trade of duplicate, illicit and cheap fast-moving consumer goods, packaged foods, tobacco products, and alcoholic beverages stood at ₹2,60,094 crore in 2019-20. The estimated tax loss to the government due to the trade of illicit goods in these five key industries was estimated at ₹58,521 crore in the same period.
“Manufacturers of consumer products and authorities concerned are prioritizing the use of secure product packaging and anti-counterfeit products such as holograms to effectively tackle the rising cases of fake fast-moving consumer goods in the country, said Ankit Gupta, director of Holostik India, a key player in security holograms in India.
“Security holograms are used to stop counterfeiting and to protect any product or a brand’s legitimacy from being replicated. The demand for security holograms increased during Covid-19 when there was a spike in online marketplaces. Online platforms saw a growth in the sales of counterfeit goods, forcing firms to provide consumers with ways to verify the authenticity of their items and prevent them from buying cheap and duplicate products,“ Gupta said.
Globally counterfeiting is a big problem and poses a threat to the economy, businesses, and consumers. However, holograms are effective weapons, providing a flexible, quick-to-deploy visual authentication device that can bolster supply chains and help manufacturers, regulatory authorities, international law enforcement, and border customs to improve their anti-counterfeiting plans, Gupta said.
The security hologram market, Gupta said, is all set to grow globally due to rising consumer awareness against counterfeit goods and the rising need for anti-counterfeit equipment. The need for security holograms is being fuelled by an upsurge in the internet sales of counterfeit goods. The brand image and sales of genuine products are affected by counterfeit goods. The availability of fake goods not only damages the brand and value of the business but also hurts the customers, Gupta said.
Packaging with security devices can ensure quality and check the distribution and smuggling of illicit products. Items not displaying security devices such as holograms can be seized and destroyed. “Today, we have seen advances in application, film coating, and manufacturing technology, which is rolling back the boundaries for the use of a new generation of advanced holograms – facilitating fresh levels of visual effect, brand enhancement, regulatory compliance, and anti-counterfeiting.” Mr. Gupta said.
To meet the global demand for anti-counterfeiting solutions, the new innovations developed and manufactured by Holostik India include nano optical image OVDs (optically variable devices) or ultra-secure holograms. These are the most secure & technologically advanced OVDs or security holograms. The master of these OVDs is shot at a resolution above 6 lakh dpi. It can include nano text (up to 5 microns), nano images, microstructure, and much more, according to Gupta.
The other products by Holostik include the Optashield, which is based on custom holographic technology. The Optashield displays two different colors at two different viewing angles. It is among the most secure and convenient authentication devices in the anti-counterfeit industry. 3D Labels (printed OVDs) are embedded with superior aesthetic elements, designs, and security features. 3D labels amplify a product’s visibility on the shelf and add premium appeal to the brand, Gupta said.
Holostik will continue to invest a minimum of 5% of the annual budget on research and development, new packaging, and custom supply chain software. “Investments will include new digital print machines and authentication technologies. The packaging division infrastructure will also be enhanced for higher production capabilities. We are determined to secure companies, supply chains, and human lives from the ill effects of counterfeiting,” he said.