Packaging

Kodak and Liz Claiborne Cosmetics Help Brand Owners Fight Counterfeiting at the Brand-Protection Packaging Forum

Monday 07. April 2008 - The best defense is a strong offense when it comes to combating counterfeiters and protecting brand value. Liz Claiborne Cosmetics and Kodak are providing brand owners an inside look at how a covert technology from Kodak is helping fight counterfeiting and diversion in the cosmetics industry.

William Zhou, Manager of International Operations for Liz Claiborne Cosmetics will present “Protecting Brand in the Age of Counterfeiting and Grey Market Diversion” at the Brand-Protection Packaging Forum on April 8 at the Chicago Marriott in Schaumburg, Ill.

Liz Claiborne uses the KODAK TRACELESS System for Anticounterfeiting to easily authenticate its products and to track sales through authorized distribution channels. Grey market diversion, an issue that is common among popular international brands, involves distributors selling product into unauthorized markets and unauthorized retailers. The use of ultra covert KODAK TRACELESS System markers helps legitimate distributors, retailers and manufacturers protect profits and overall brand value.

“The value of the Liz Claiborne brand both internationally and domestically makes it a prime target for counterfeiters,” said Zhou. “We saw how the KODAK TRACELESS System could help us defend against our biggest threat to profit and brand erosion—grey market diversion—and Kodak is now an integral part of our security strategy. By sharing our successes with other brand owners, it will help them develop their own strategies to ensure that their brands are protected and that their customers are safe.”

Cosmetics are among the estimated $700 billion of total counterfeit goods produced annually, and are exploited for their high value status and global brand recognition. According to a European Union report, approximately 1.6 million counterfeit cosmetics and personal care products were seized by its officials in 2006. Additionally, renowned fragrance critic Chandler Burr of The New York Times estimates that leading cosmetics sold in grey markets account for nearly 50 percent of total sales.

“In today’s world market, brand owners have a tough job to protect their brands and ensure that consumers are receiving an authentic product from a legitimate retailer,” said Steve Powell, General Manager and Director, Security Solutions, Kodak’s Graphic Communications Group. “Getting out in front of the problem by implementing a brand protection strategy is crucial in maintaining product security, protecting profits and strengthening relationships with customers and consumers. Incorporating the TRACELESS System into that strategy can give brand owners much needed assurance that those who attempt to replicate or divert product will not be successful.”

In addition to its cosmetic and fragrances clients, Kodak has also successfully implemented solutions for customers in the pharmaceutical, consumer electronics, wine, apparel and other markets.