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ASPA and CRISIL release their first-of-a-kind report titled ‘State of Counterfeiting in India 2022’
Counterfeiting activities are impacting the sustainable growth of the major industries in India, including Pharmaceuticals, Fast Moving Consumer Goods (FMCG), Automotives, Apparel, Consumer Durables/Electronics, and Agri products, according to a new report released by ASPA & CRISIL. The report is based on an independent survey conducted with consumers and retailers covering twelve Indian cities (Delhi, Agra, Jalandhar, Mumbai, Ahmedabad, Jaipur, Indore, Kolkata, Patna, Chennai, Bangalore, and Hyderabad) to gauge their perception of counterfeiting in several key sectors.
An important finding of the survey was that consumer perception pegged the extent of counterfeiting at 25-30% of the market, higher than the general industry expectations. Counterfeiting is most prevalent in FMCG, Apparel, and Agrochemical sectors (~30%), followed by the pharmaceutical, automotive, and consumer durables sectors (20-25%). The survey also reveals that almost 89% of consumers acknowledge the presence of fake products in the market and are often compelled to buy counterfeits for reasons such as sensitivity to price, demand-supply gap, desire to buy luxury brands, peer pressure, and social motivations.
However, nearly 27% of the consumers were unaware that the product was counterfeit at the time of purchase, making it more important to spread awareness about the issue and identification methods in fighting fakes. Apparel (31%), FMCG (28%), and Automotives (25%) are the top segments where consumers came across a counterfeit product.
Sharing the insight on the report, Nakul Pasricha, President of the Authentication Solution Providers’ Association (ASPA), said, “Illicit goods trade stood at Rs 2.6 trillion in FY 2019-20 in India and affecting almost all sectors. It is on the rise and heavily bleeding the country, industry, and consumers by large.”
Suresh Krishnamurthy, Senior Director, CRISIL Market Intelligence and Analytics, said, “Counterfeiting is not limited to high-end luxury items. Even common items, from cumin seeds to cooking oil and from baby care items to medicines, are increasingly reported as counterfeit.”
While the FMCG industry is adopting authentication solutions, there needs to be more communication with consumers. 35% of the consumers who came across counterfeit FMCG products were unaware that the products were counterfeiting, which is the highest among all segments.
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