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Protect Fast-Moving Consumer Goods With INNOV RFID
May 17, 2018

Protect Fast-Moving Consumer Goods with INNOV RFID


Today’s fast-moving consumer goods (FMCG) markets face a number of challenges, such as pirated goods, parallel trading, and gray market practices. RFID technology provides new and improved methods for combatting these problems.


The problem that today’s FMCG markets facing

Outsourced manufacturing sites may produce more than agreed-upon quantities or counterfeit products, diluting corporate profits and adding risk for brand damage. Users may return products damaged by counterfeit consumables to brand owners to ask for repair and returns, adding unnecessary cost to brand owners. And unscrupulous distributors may tamper with product labeling and packaging to profit from parallel import, as well as from dilution, substitution and refilling.


Brand owners face a loss in revenue and a reduced brand reputation from inferior user experience of counterfeit products, governments face reduced tax revenues, and products not conforming to health, safety, or environmental standards can harm society at large.


RFID—The Next Step in Anti-Counterfeiting

RFID technology offers a step-up in protection against copying and tampering. For example, each RFID chip has a unique serial number (TID), which permits mass-serialization. And each unique serial number is factory programmed and locked (cannot be altered), providing tamper resistance. In addition, RFID offers further protection options such as restricted access (via a password), User Memory, Tamper Alarm and Data Encryption.


These authentication benefits come in addition to all other general benefits that RFID provides, including:

  ● Elimination of line-of-sight requirement

  ● Proper operation even in harsh and dirty environments

  ● Ability to read of hundreds of tags/labels simultaneously, thereby enabling highly automated processes


Application benefits

  ● Fast detection of counterfeit products

  ● Deterrence of parallel trading and gray markets

  ● Ensuring that health and safety standards are met

  ● Providing ability to void warranty when consumers use fake consumables in machines

  ● Increasing Government taxation revenue


RFID Features Beneficial to Application

  ● Unique serialized identification

  ● No line-of-sight requirement

  ● Ability to read of hundreds of tags/labels at a time

  ● Enabling of highly automated processes

  ● Secured on-chip data storage


RFID for Authentication Already In Use

Brand owners and governments around the world have already started embarking on RFID for counterfeit protection. During 2010, factories in China tagged tens of millions of items, without government mandate. Return on investment (ROI) has driven this action. ROI comes from increased tax collection for governments and for brand owners, and it is realized through brand and revenue protection. In cases that involve machines, brand owners also have the option to ensure the warranty applies only when approved consumables have been used throughout the product’s lifetime. Consumers receive protection through confirmation of origin, quality, and health and safety standards.





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