Why counterfeiting is harmful for manufacturers?

Anti-Counterfeiting

Over the years organizations have tried to curb counterfeiting but their efforts have turned futile. In addition, the added costs in fighting fakes come as an extra burden. Besides these issues, there are a whole lot of challenges faced by a company or organization due to duplication. Let’s discuss them in detail.

Loss of sales revenue and profit margin: Sales and profit margins are the veins and nerves of any organization. A company’s success is determined by the number of sales it has earned in a specific time frame. A good number of sales is a visible indicator of a company’s well being and vice-versa. The sale of duplicate items leads to a drop-down in the sale of a company’s products. If it goes unchecked, then it can lead to a complete downfall of the company. Due to multiple sale locations of the product, it is quite hard for a company to trace the manufacturing location of counterfeits.

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