RFID Brand Protection Securing your most valuable assets

RFID Brand Protection Securing your most valuable assets

RFID SUPPLY CHAIN
SECURITY &
BRAND
PROTECTION
Securing your most valuable
assets and making consumers
your partners in the fight
against counterfeits
Take brand protection to the next level
Brand owners are facing more challenges than ever in today‘s complex supply
chain systems, such as counterfeit and pirated products, gray market practices,
unauthorized distribution ...
RFID technology is a very powerful solution to combat these issues by
protecting your brand from the factory floor all the way to the hands of your
valued consumers
NXP, #1 RFID Identification chip technology leader, offers unique and patented
protection solutions - trusted by governments, the banking industry and many
business verticals around the world
On a unit base, brand protection is like a tiny insurance policy that
helps hold up your promise to your consumers and constituents
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April 20, 2015
The Rising Cost
of Counterfeiting
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April 20, 2015
The rising cost of counterfeiting
• By 2013 global financial losses from
counterfeiting and piracy soared to $1
trillion – losses are forecast to jump to
$2.3 trillion by 20181
• Growth of global counterfeiting is
accelerating to 15.6% annually between
2013-2018 (up from 6.8% annually
between 2008-13)
• However, the global solutions market is
running at only 0.52% of financial losses
from product crime in 20131 – a huge
growth potential !
Percentage of counterfeits
in total market
• Fragrances /
20% /
Color cosmetics
15%
(mass)
10%
• Luxury beauty
12%
• Spirits2
1 Vandagraf
Researrch 2015, 2WCO
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Counterfeiting is growing in value and reach
Counterfeit and pirated products were valued at $650 billion every year in the
G20 - accounting for 5-7% of all global merchandise trade 1
By 2015, this value will exceed $1.2-1.7 trillion - that‘s 2% of the world‘s
current economic output1
The broader economy wide effects in the G20 - e.g. lost tax revenues and
higher welfare spending - are valued at over $125 billion every year. Also 2.5
million legitimate jobs are put at risk annually1
"The Crime of the Century"


Incidences of counterfeit seizures
in the US increased 750% from
2000 to 2013 2
Customs cases in EU increased
over 1400% from 2000 to 2012 3
Source:
1 ICC/BASCAP – Frontier Economics report, 2011
2 US DHS / CBP Office of International Trade, 2014
3 EU Report on Customs Enforcment of P Rights, 2013
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April 20, 2015
Counterfeits are big brand value detractors
Brand image and reputation are at
risk:
 Consumers see less value in
authentic products vs cheaper
look-alikes
 Brand reputation is harmed once
consumers are let down by
counterfeits that don‘t work ...
and disappointed consumers
tend to be vocal
 At worst, consumers‘ health &
safety may be at risk
 Relationships with distribution
partners will suffer
1Source:
Direct financial costs of
counterfeiting are high:
 lower revenues
 eroded market share
 stolen know-how
 wrongful lawsuits
 reduced investment in NPD ...
Percentage of counterfeits
in total market1
• Travel & Leather
8%
(Luxury & mass)
10%
• Luxury Apparel
20%
• Sports Apparel
& Footwear
30%
• Sunglasses
Vandagraf Research 2015
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April 20, 2015
Drivers behind this growth
Underlying supply and demand
drivers behind this growth:

The increased complexity of the
modern supply chain internationalization, outsourcing, eRetailing etc. mean less control

Low risk, high reward for
counterfeiters - shipments to multiple
assembly locations, anonymity of the
internet, low penalties

Technological improvements have
made detection more difficult allowing sophisticated counterfeiting
with negligible capital investment
Illegitimate goods have pervaded
all market sectors:

from high-end to everyday products

whether counterfeit products, or
properly manufactured products
diverted to improper channels
Source: 1 EU Repoprt on Customs Enforcemen of Intellectural Property
Rights, 2013
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April 20, 2015
Brand Protection
against Counterfeiting
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April 20, 2015
Brand owners need to secure their assets from
source to sale
Counterfeit products can (and do) enter the system from
many points
Distribution
Customs
Distribution
Raw
material
Manufacture
Raw
material
Quality control
Raw
material
Point of
sale
Consumer
Internet
Unofficial overruns
Add
authentication
feature and
audit
Authentication through customs
and inspection teams
Authentication
by consumer
Brand protection solutions can help prevent counterfeits and channel
diversions entering the supply chain at vulnerable points
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April 20, 2015
Alternative technologies offer different levels of
applications and protection
Brand protection solutions
Overt
 OVDs /
Holograms
 Colour change
inks
 Watermarks
 2D Barcodes /
Matrix Digital
Codes
Covert
 RFID tags
Track & Trace


Tamper
evidence

2D Barcodes /
Matrix Digital
Codes
RFID tags

Tamper and Copy Resistance
Authentication
Different tamper
resisent labels
and closures
RFID tags
RFID is difficult to tamper and copy
• Holograms
• Barcodes
Various security levels are possible
 Easy to copy!
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April 20, 2015
RFID is unique in that it provides a
combination of brand protection functions
RFID 'stand-alone' brand protection application - deploy with the single
purpose of providing a brand authentication feature
RFID 'multi-functional' brand protection application - deploy to deliver
authentication, tamper evidence, tracking and tracing, product history etc
This multi-functionality offers brand owners an integrated end-to-end system
solution ... making RFID a highly cost effective and easy to implement
solution for total asset protection
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April 20, 2015
Why RFID?
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April 20, 2015
RFID functions take brand protection to the
next level
 RFID can uniquely identify a product - the embedded unique serial identifier
(UID / TID) verifies that the product associated with a tag is genuine and that it
has been supplied through authorized channels
 Secure cryptography integrated into an RFID tag offers very high counterfeit
and cloning protection
 RFID tags can be very small and can be covertly embedded into products no line of sight requirement for reader devices
 RFID tamper protection can be useful to identify if tampering has occurred or
the packaging has been opened previously - resulting in the destruction of a tag‘s
transmission properties
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April 20, 2015
RFID functions take brand protection to the
next level
Traceability systems facilitate supply chain management and inspection helping assess identity, location, ownership trail and condition of an individual
product
 Anti-collision permits near simultaneous identification of hundreds of items hence the ability to count multiple items automatically through packaging and
speed up processing
 Consumers can now verify a product‘s authenticity through their own
smartphone devices to gain assurance on product quality and provenance
This multi-functionality - identification & authentication, track & trace and
tamper resistance - makes RFID a highly cost effective and simple to implement
solution for total brand asset protection
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April 20, 2015
Barcodes vs RFID for authentication and tracing
2D barcodes / Matrix
digital codes
Encrypted RFID or
NFC tags
Yes
Yes
Identifies fakes at
consumer level
Not secure
Yes in conjunction with an
NFC cell phone
Impact on design
Needs valuable space due to line
of sight reading
Can be covertly embedded
in product / packaging
Serialization
Major effort, usually not possible
Yes by default
Application cost
Low
Medium
Operational cost
Low
Low if RFID phone is used
Anti-collision - near
simultaneous identification
of many items
No
Yes
Acquisition and
authentication (in range)
No
Yes
99.999% Secure
No
Yes
Can identify tampering
No
Yes
Can prevent stock loss
No
Yes
Supports track & trace
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RFID protection works in your favor
• RFID makes it easy for customs officals, supply-chain
Authentication
(UID, serialization, crypto)
Track & Trace
(UID, serialization,
anti-collision)
managers and you to identify your legitimate goods quickly
and definitely - their genuineness, country of origin, intended
country of sale ...
• Protect your brand reputation and sales revenues to keep
counterfeiters and channel diverters at bay
• RFID gives you transparency to make smart decisions about
the status and handling of your products throughout the
supply chain - via secure and scalable tracking technology
Tamper evidence
• Tamper-evident closures, seals and labels appended with
RFID chips can be used to protect against various forms of
tampering (grazing, product removal, fraudulent cash
refunds)
Consumer enabled
authentication
• Engage directly with consumers through their mobile phone
to help them authenticate your legimitate, high-quality
products [see next section]
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Empowering End User
Authentication
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RFID allows purchases to be authenticated in
real time at the point of sale
Consumers can now instantly verify
the authenticity of a product prior to
purchase - anywhere in the world
A proprietary brand authentication
app functions in conjunction with an
RFID tag carried on the packaging or
product
Consumers benefit by receiving
assurance on product provenance
and quality, as well as compliance to
health and safety standards; you
benefit by making consumers
partners in the fight against
counterfeits
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April 20, 2015
... whilst offering a new channel for building
relationships with consumers
RFID tagged solutions also allow:




Easy consumer access to additional product information
Consumer rewards and warranties for buying authentic products
Complementary merchandise recommendations
Location-based messaging and offers etc
Brand owners get a direct link to consumers and can integrate with existing
marketing programs (e.g. loyalty) and social media platforms
This allows the capture of valuable consumer data to generate new behavioral
insights
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How it works
The mobile phone reads the NFC
tag‘s unique serial reference and
sends this to a centralized database
on a secure server for authentication
Alternatively on-phone decoding and
authentication can take place with
decryption built into an app carried
with the phone - offering an even
higher level of protection
An authentication response is
generated to the consumer:
genuine / not genuine product
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April 20, 2015
Brand protection
in practice
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April 20, 2015
RFID authenticated
wines
Users can tap their mobile phone
against Duclot‘s RFID tagged
Bordeaux collection cases to verify
their authenticity via a unique serial
identifier on each tag
RFID also offers integrated
traceability from vines all the way into
points of sale
Consumers can gain access to
additional product information, e.g.
on the growth variety, the cellars,
serving tips etc
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April 20, 2015
NFC authenticated,
personalized bags
Aki Choklat’s bags are equipped with
NFC tags encoded with unique
identifiers
Combined with a cloud solution, the tags
prove the bags’ authenticity - displaying
when and where those were created
Upon purchase, consumers register
ownership of their bags and receive a
free app - with this app, users can
create content around the bags (e.g. a
travel diary, a bag archive), transfer
ownership to another person, or even
report it stolen
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April 20, 2015
NFC tagged
snowboards
APEX custom-made snowboards
utilize a unique NFC electronic
identifier scheme combined with a
cloud solution to perform an
authentication check against
plagiarism
NFC tagging also offers added value
services to consumers:
displaying weather forecasts,
avalanche reports, emergency
rescue numbers, and Facebook links
giving an option to register one‘s
snowboard
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April 20, 2015
Big Game USA
• The Big Game USA footballs are
equipped with NFC tags that work with a
smartphone app and a secure cloud
database
• Balls have a story of their own and
include product authenticity and a
historical timeline
• By way of tapping, users can access
each football's history - manufacture
date and location, whether the football
was used in practice or a collegiate
game, big plays etc.
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NFC authentified
works of art
Italian gallery Linea Murano Art is
protecting the authenticity of the
works of its artists using NFC tags
An art object carries an NFC tag, with
each tag‘s unique ID number being
linked to details about the work on a
secure server
Buyers can access a PDF of its
certificate of authenticity, as well as
photos / videos of the artist and each
work’s creation
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April 20, 2015
RFID authenticated
spirits
Korean National Tax Service is combating
counterfeits to protect tax revenues and
public health safety
$680M savings expected due to increased
transparency and efficiency achieved
through monitoring, tracking and
identifying unit quantities of liquors to
ferret out counterfeits and diversions
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April 20, 2015
Why NXP?
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Our different RFID read ranges integrate
seamlessly with different client processes
RFID works both long and short range to enable supply chain track & trace at
multi-pack level and consumer authentication at item level
Read range considerations:
HF RFID
technology
UHF RFID
technology
Item tagging
Multi-pack reading
(e.g. In box, tunnel)



Product
authentication via
NFC mobile phone


only possible with
UHF plug-in reader
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NXP gives you protection that goes the distance
Team up with the #1 RFID Identification leader and co-inventor of
NFC
 Benefit from our global presence and support - every time, everywhere!
 We‘re trusted by governments and banking industry for decades, equally working for
multinational clients across many industry verticals
For a future-proof partnership
 NXP offers a full suite of RFID technology across the full frequency spectrum to
enhance your processes and applications
 We offer dedicated application and system center access to speed up your time to
market
 We are ready for long-term commitments
We’re the trusted high-volume RFID chip supplier
 More than 6.5 Bn RFID chips delivered to our customers
 NXP features a strong in-house manufacturing footprint
 Our supply is easily scalable to guarantee a secure source of supply at competitive
pricing
NXP maintains leadership on innovation
 NXP continues to invest significantly in R&D to sustainably win in RFID
 NXP participates strongly in standardization (GS1 and ISO) and regulation
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Matteo Vezzosi
NXP Semiconductors Singapore Pte Ltd
Email: [email protected],
www.nxp.com www.mifare.net
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