Anti-Counterfeiting, e-Commerce and the Export Market Consumer - - PowerPoint PPT Presentation

Anti-Counterfeiting, e-Commerce and the Export Market Consumer

Building the Framework

Presenter: Hollis Ashman

University of Melbourne

On behalf of Melindee Hastie

Research Streams

• 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

• 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

• 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.

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

• ptions

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

Present Technology Future Technology Market Impact

Effectiveness Factors:

• Can’t be Duplicated
• Dynamic
• Dependable
• Single use
• Covert
• Overt
• Remote

Review of 10.000 Anti-Counterfeiting Patents

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

The database search shows us what present technology fits against the factors of choice.

Factors

• f choice

Technology that fits

Search Database for Present Technology that Fits

• 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

Anti-Counterfeiting, e-Commerce and the Export Market Consumer

Testing the Framework

Caroline Francis

University of Melbourne

• 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/

• Hard to distinguish between real and fake.
• Traditional Shopping Cues Lost making judgment difficult.
• Chinese e-Trust is damaged consumers on high alert.

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

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.

• 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.

http://banknotes.rba.gov.au/banknote-features/#-new-five

 Complete Transparency - key to trust.  Playful Engagement – from anxiety to fun.  User-Centred - security validated.

“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

Working with a Wine Industry Partner

Online Virtual Prototypes

Aim:

To identify Anti-counterfeiting Technology that has the greatest impact on consumers e-trust?

Digital Connection with consumers allowing them to get feedback and extra value online

QR codes

Intricate Patterns, Textures and Hidden Score-marks

Deters Label reuse and Re-engineering

Thermochromic Inks

Heat changes the colour Colour returns back

Delights The consumer with innovative engagement and authenticates the product

Holographic Seals

Identifies Tamper evidence and establishes a seal of recognition

Destructive Layered Packaging

Protective Identity layering makes counterfeiting difficult with new designs changing

• ften

Working with a Wine Industry Partner

Chinese consumer panels

Qualitative Multivariate Analysis (QMA’s)

TRUST DOUBT EVERYDAY ADDED- VALUE

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.

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 ashmanhollis@gmail.com Caroline Francis PhD Researcher c.francis2@student.unimelb.edu.au

www.foodvaluechain.unimelb.edu.au