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challenge
Due to the special nature of the industry, there is no exact record of the scale of the output value of counterfeit alcohol products at the global or national and regional levels. It is very difficult to quantify the actual impact of the trade of counterfeit products on the economy. Illegal fraud is usually large-scale and irregular. Organizational actions and economic globalization have also provided a breeding ground for the growth of trade in counterfeit products. However, according to the statistics of the International Anti-Counterfeiting Coalition (IACC), the global trade volume of counterfeit products in 2011 was approximately US$600 billion, an increase of more than one hundred times compared with the US$5.5 billion in 1982.
In addition to reducing government revenue, the trade of counterfeit alcohol products has also caused huge economic and social cost losses. As early as 2000, counterfeit alcoholic products have caused a large number of deaths or serious illnesses, affecting countries and regions including Poland, Ecuador, Taiwan and Côte d’Ivoire. South Korea’s alcohol consumption is among the best in Asia, with an average per capita of 11.8 liters. Counterfeit alcohol products pose a real threat to the health and safety of consumers in this country.
Counterfeit alcohol products are mostly blended with substandard ingredients, and there is little or no quality control. In order to grab huge profits, counterfeiters even omitted basic health and safety inspections.
In addition to endangering the health and safety of consumers, counterfeit alcoholic products can also undermine the government’s various regulatory and regulatory actions in the field of safeguarding public interests. In South Korea, authentic and brand-name alcohol products have certain quality assurance, while counterfeit alcohol products break through the legal bottom line of being responsible to consumers. In addition, counterfeit alcoholic products will also have a negative impact on the government’s taxation policies and tax management.
solution
In order to combat counterfeit product trade, which is a highly organized 21st century crime, the South Korean government has begun to take up technical weapons to track and trace authentic alcoholic products legally produced in the country.
Zebra Technologies and its partner ANGELNET have jointly developed an application software called “Liquor Distribution Management System” for the National Tax Service (NTS) of Korea, which uses radio frequency identification (RFID) tags Technology, through the detection of the supply chain to identify counterfeit alcohol products, so as to gradually eliminate illegal transactions and tax evasion in the domestic whiskey industry.
This application software was officially launched in November 2010, which can help regulators and consumers conveniently manage or verify the distribution information of local authentic whiskey through mobile sensors and smartphones. Users only need to scan the RFID tags on the authentic whiskey bottles to obtain relevant information.
Up to now, the “Alcoholic Product Distribution Management System” is the first application software on the Korean market that applies RFID technology to the distribution and supervision of authentic alcoholic products. Barcode label technology is currently the only alternative solution on the market, but the level of security assurance of this technology is not as good as RFID. In addition, the use of barcodes is limited by the environment and requires good lighting to read correctly. The lights in bars and other retail outlets of alcohol products are usually dim, so it is not suitable for the promotion of barcode technology. On the contrary, RFID tags can be accurately read under any light conditions and can contain more information than traditional bar code tags.
Results
On the one hand, the RFID technology adopted by the “Alcoholic Product Distribution Management System” helps prevent the sale of counterfeit alcoholic products and tax evasion. On the other hand, due to the high performance level of RFID label printers, the RFID label process can achieve 100% coding accuracy. This advantage can reduce the loss of RFID tags caused by coding errors and increase the accuracy of marking and reading RFID tags to 100%. At the same time, higher encoding speed (less than 1 second per label) also helps companies maintain and improve operational efficiency.
Using RFID technology, the “alcoholic product distribution management system” can also check the health and safety of consumers, and can effectively shut out counterfeit alcoholic products. Liquor retailers can also benefit from it, because this application not only provides them with brand and legal protection, but also provides quality assurance for purchases.
Market potential
According to the Economist magazine, the three countries where counterfeiting and piracy are most rampant in the world are all located in Asia, namely China, Vietnam and Indonesia. Last year, Asia was the only region in the world where the fraud rate increased, with an average fraud rate of 51%.
In South Korea, the scope of application of this application has begun to expand from Seoul to other major cities, and will eventually be extended to the whole country. In addition, RFID technology can also be used to combat the increasing number of counterfeit products in the market such as health care products, luxury goods, automobiles and machinery parts and accessories, and household appliances.
One of the key factors for the success of this application is the maturity and stability of the mobile communication infrastructure, because the software requires the use of mobile sensors via smartphones. In addition, even if the accuracy of RFID tags is as high as 100%, this application will not be successful without the Korean government’s consistent policy to combat counterfeit products and the cooperation of alcohol product distributors.
This case study has given us the enlightenment that fraudulent acts endanger the integrity and rights of brands and products, and brand protection solutions such as RFID tag technology can play an important role in the process of combating counterfeit products. The counterfeiting level of counterfeiters continues to improve, and protection solutions need to be improved accordingly.
Combined with Zebra’s brand protection solutions, this application software can also help consumers use existing label printing systems to provide multiple levels of protection for their products. With the advancement of technology, Zebra users can use existing shipping labels, price tags or other product identification methods to monitor counterfeit and illegally transferred products without the need to modify existing printers or establish new labeling procedures.
At the same time, Zebra Technology also provides invisible labeling agents, magnetic lines of force and other label media and pattern adhesives. Users can combine and use security media and RFID smart tags to provide multi-layer protection for products to prevent counterfeiting and illegal transfer of products. . Traditional printers can use these materials without any modification or upgrade. All forms of Zebra security media can be easily verified, and users only need to use a low-cost, reliable barcode reader to easily verify at any link in the supply chain.
About Zebra Technology
As a globally recognized leader in innovation and reliability, Zebra Technology (NASDAQ: ZBRA) provides innovative technologies that can help companies monitor important assets, personnel and affairs. Its comprehensive printing and positioning technologies, including RFID printers and real-time positioning solutions, illustrate the importance of mission-critical information for companies to take smarter business actions.To learn more about Zebra Solutions, please visit http://www.zebra.com.cn.
(Exclusive manuscript of rfid world network, please indicate the source author for reprinting!)
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