New Delhi, Jan 13: Fast-moving consumer goods (FMCG) companies have a serious problem on hand: Countering one of their own. While these companies with their deep pockets and well-oiled marketing muscle and machinery can elbow out rival brands from shelf-space, they are not quite confident of confronting brands pretending to be what they aren't.For the likes of Hindustan Lever, Procter & Gamble, Dabur, the stakes are large: an effective strategy to counter this menace of counterfeits prowling in the market would paint their bottom lines in a darker shade of pink.
Consider this: the total value of fast-moving consumer goods market in India is estimated at Rs 60,000 crore. Of this, counterfeit companies rake in a healthy Rs 1,700 crore annually through their products which pass off as Ariel, Pantene Pro, Head & Shoulders, etc.
Revenue loss is not the only problem. The counterfeits, with their shoddy manufacture, can cause permanent injury to the reputation of the originals, quality-wise that is.
Not surprisingly, it was but natural that these FMCG biggies joined hands to confront the baddies. To start with, Hindustan Lever, Dabur and Procter & Gamble have joined the Federation of Indian Chambers of Commerce and Industry's (Ficci) Brand Protection Committee (BPC), headed by P&G chairman Bharat Patel. Others like Marico, Britannia, Coke and Pepsi are also part of the committe. Recently, the crime branch (IPR section) of the Delhi Police seized large quantities of counterfeit products/passoffs of P&G, Dabur and HLL, worth over Rs 3 crore. This has been the result of sustained campaigning by Ficci's BPC over the past few months for controlling the menace of increasing incidence of counterfeit and passoffs which is hurting the Indian industry.
The counterfeit goods find a huge market in states like Madhya Pradesh, Gujarat, Delhi and Mumbai. Ficci's BPC proposes to approach the state governments to help stop this menace, Dr Amit Mitra, secreatry general of Ficci, said while addressing a press conference here on Saturday.
The infringing products were violating the trademarks and copyrights of well-known brands such as Ariel, Head & Shoulders and Pantene of P&G, Dabur Amla Hair Oil of Dabur and Sunsilk, Clinic All Clear and Clinic Plus of HLL.
Ficci's BPC has also set up a first of its kind dedicated website, fake-busters.com to facilitate open communication between stakeholders and other interested parties. The site also offers Food and Drugs Association addresses.
Apart from FMCG prodcuts, the website will expand its reach to 20 products segregated in 8 categories including rubs & balms, glucose biscuits, beverages, coconut oils, batteries, shampoos & soaps, detergents and fairness creams. Ficci's BPC is also working in tandem with Indian Pharmaceutical Alliancemembers including Ranbaxy, Dr Reddys, Alembic and others to check the menace of spuriuous drugs as well.
This aggressive collaborative action is the first in the series of actions by the Brand Promotion Committee and part of its four-fold strategy which includes initiating action against infringers, advocating more effective enforcement of existing laws and regulations, measuring and publicising negative economic impact of counterfeit and pass-offs and opening communication channels between the various stakeholders, to generate awareness and stimulate action.
Dabur director, Sunil Duggal said, "A large number of counterfeit and pass-off products of popular brands are a sad reflection of the state of brand protection in the country". FMCG market in India is worth Rs 60,000 crore and the annual loss to the industry has been to the tune of Rs 1,700 crore. The government too has been a loser as the counterfeit products escape exise duty. P&G senior manager Deepak Acharya said, "We have a responsibility to our consumers. These look-alikes harm consumers' interest since they do not provide any of the benefits of our original, superior quality products and do not neet the consumer's needs in any way".
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