Beauty brands should invest in smart packaging solutions to counter rise in counterfeit products on e-commerce and s-commerce

With the online channel forecast to account for 15.3% of UK health & beauty spend by 2024, there needs to be renewed interest in protecting consumers who are shopping for these products online. This is the perfect opportunity for beauty brands to invest in smart packaging solutions that implement technologies such as blockchain or data tracking technology, says GlobalData, a leading data and analytics company.

Yamina Tsalamlal, Associate Analyst at GlobalData, comments: “Counterfeit products hold high risk for personal care brands, and it is imperative from both consumer safety and a branding perspective to fight against these fake products on all fronts. It is in a brand’s best interest to invest in smart packaging solutions, especially at a time when more customers than ever are shopping via e-commerce platforms – where the shopper can’t see the salesperson or test the products in person. Smart packaging can give consumers that peace of mind.”

Consumers – especially those in the younger age brackets – are price, image and trend conscious, and getting the latest products at the best price can be paramount. Furthermore, this age range is comfortable with interacting with the industry online – with beauty influencers often taking to social media to promote products – and online consumption is significant.

Tsalamlal continues: “Unsurprisingly, Gen Z and Millennials led in the number of consumers who said they are buying more personal care products online due to COVID-19 in a recent survey by GlobalData. They are tuned into social media and trends, and are – as a result – likely to be vulnerable to counterfeit products.”

The counterfeit industry has been estimated to be in the trillions. Brands in all categories are looking to technology with reasons ranging from showing consumers their supply chain is sustainable and ethical; to tracking luxury items to ensure their authenticity.

Tsalamlal continues: “This is where innovation is key. With so many e-commerce touchpoints, it can be difficult for a consumer to resist a great deal on their favourite brand. However, if they have access to blockchain technology – whether that be via an app or directly on product packaging – everybody wins: consumers get access to a safe and tested product they can trust, and brands can ensure their trademark and reputation is protected.”

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