Brands in the Asia-Pacific (APAC) region are making efforts to enhance the transparency of their operations by offering new disruptive tools through smart packaging to combat counterfeiting, says GlobalData, a leading data and analytics company.

GlobalData’s 2018 Q4 consumer survey reveals that 68% of consumers in APAC are always or often influenced by how trust-worthy or risk-free a product is.

Shagun Sachdeva, Consumer Insights Analyst at GlobalData says: “Consumer safety and quality concerns are driving tremendous innovation in the consumer packaging space. Consumers in APAC are increasingly paying attention to the product authenticity and product safety and take cues from the packaging, including the packaging quality as well as security features such as QR code, holograms and RFID tags.”

Counterfeiting is a global problem across multiple categories, with most leading brands being at risk. As a result, manufacturers and suppliers need to carefully assess the types of counterfeit and its impact on their category to identify the smart packaging solution.

Sachdeva explains: “Brands are therefore embedding advanced smart packaging techniques such as blockchain, Internet of Things to provide consumers with information regarding the contents of the package, its environmental condition, and location, among other data points.”

Consumers have been the ultimate victims of counterfeiting in fast moving consumer goods (FMCG), especially in food, drink, cosmetics and toiletries, and pharmaceutical products.

Food scandals in the past few years have only resulted in consumers being more attentive to the source of ingredients, country of manufacturing, naturalness/purity, quality control, and brand trust, all basic factors to be considered before purchasing.

Shagun adds: “Smart packaging has the most influence on the purchases of Generation Y (Millennial) as they are considered to be a driving force for digitalization, encouraging manufacturers to act accordingly.”

For instance, Switzerland-based smart packaging company ScanTrust collaborated with Shanghai-based coffee firm Cambio Coffee to build blockchain–enabled traceability functions to fight counterfeiting and bring in greater transparency across its supply chain. Danone added ‘hydration coaching’ cap to Font Vella bottled water to coach consumers towards adequate hydration.

Sachdeva concludes, “Manufacturers need to make smart and sustainable packaging work together to give premium categories a new competitive edge. Also, there exists opportunity for independent brands to leverage the ‘economies of small’ in their favor and support artisanal communities.”