Electronics manufacturing marred by counterfeiting

by Jon Jagelsky, on February 26, 2016

Screen_Shot_2016-02-24_at_12.00.23_PMIn a globalized market, an increasing number of consumer products come from the developing world. This includes electronics. Many of the components that make up our computers and smart devices are made in factories overseas.

Unfortunately, while manufacturing is helping these economies grow, many of these countries are still plagued by significant electronics counterfeiting problems. This has real implications for businesses that participate in the global consumer electronics supply chain.

For instance, major sectors of the Indian economy were estimated to have lost as much as 1 trillion rupees (about $14.7 billion) to counterfeiting, according to the Federation of Indian Chambers of Commerce and Industry. This is 44 percent higher than two years prior.

Not all of this counterfeiting occurs completely underground. Because countries like India and China often serve as sourcing markets for global companies, some factories actually use spare capacity to make counterfeit goods and sell them on the side.

Counterfeiting not only leads to a loss of business for legitimate manufacturers, but also presents safety issues for consumers. In particular, complicated electronics that have been improperly copied may have contain electrical and fire safety hazards, causing malfunctions and even injuries.

The key to preventing counterfeiting is traceability. Supply chains are complex, and contain numerous opportunities for the introduction of counterfeit materials. Only the ability to trace each product or component back to its source can stop this. Enterprise Labeling Solutions make it possible for industries to improve product traceability. Accurate labels that are difficult for the layman to replicate can go a long way to ensuring that only genuine goods are sold.

For more information on electronics labeling and counterfeiting in this industry, download our white paper on the "Counterfeiting - The Rising Threat to Electronics Manufacturers."

 Electronics Counterfeiting Paper