WHAT IS AUTHENTICK?
A key issue in India is counterfeits – and it is spread across pharmaceutical drugs, clothing, music, automotive parts, FMCG products, soft drinks and other products. It is estimated that about 25-30% of the drugs sold in India are spurious, about 1 in 3 automotive parts are duplicates, about 10% of the FMCG market and major soft drinks are accounted for by fake products and 10% - 30% cosmetics, toiletries and packaged foods are counterfeits.
A survey estimated market share losses of between 20-40% of FMCG products to counterfeits. While customers knowingly buy certain counterfeits (cheaper price – less impact on consumers v/s increased perceived benefits), in many cases they are fooled into buying them.
It affects the consumer (who, in areas like Pharma or FMCG would be taking a fake that has no positive effect; but on other extreme, might cause serious medical complications). The companies also lose out on their brand perception as well as revenues. The government is another key stakeholder who might be seen as in-effective in an issue that affects the mass populace.
The estimated trade loss due to piracy in India in 2006 stood at US$ 1208 million.
Several mechanisms are in place to catch counterfeit products - from usage of ‘field intelligence’ to random sampling and testing from market, industry consortiums, etc. In certain areas, the Government of India has organizations like Central Drugs Standards Control Organisation (CDSCO) with the Drugs Controller General India as its head, to enforce the quality standards of drugs, cosmetics and medical devices. The industry is countering counterfeits by investing in sophisticated packaging + educating the wholesalers. This makes it more difficult to copy and distribute counterfeits and pass them off as originals. This might reduce the possibility of replicating the packaging, since counterfeiters are typically small scale manufacturers, who make spurious products in their back yard. But many of these products could come in large scale even across country borders in near authentic packaging.
However, a consumer who buys a fake product unknowingly would never know which one is fake and which one is real. A more credible solution is to empower the consumer herself to understand if a product is spurious.
Activecubes has a solution, Authentick that enables a consumer to determine at the point of buying a drug, whether it is fake or real.
THE "AUTHENTICK" SOLUTION FROM ACTIVECUBES
A technology based solution alone cannot solve this problem – there must also be a strong awareness drive around it. While the solution may not be a fool proof mechanism to eliminate this menace, it is a big step in the right direction. It both helps the consumer as well as helps Pharma/FMCG/other companies protect their investments in developing a product and a brand.
The case below describes the solution for the Pharmaceutical industry – variants of the same could be used in other sectors.
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Technology part of the solution |
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In order to improve identification of authentic drugs, one must be able to track
the drug at the level of a strip or a vial. Bar-coding drugs at the box level have
little impact since end consumers buy strips/ vials.
There are 2 ways – one is via SMS/Text and the other is scanning a QR Code. A
consumer can use any one of the channels to verify. Someone with the simplest of
mobile devices can use the first option and those with advanced hand phones can
use the QRcode app. |
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1. SMS/Text a Unique Identification Number at Strip/Vial level: We would partner with each and every manufacturer of Pharma drugs, to identify and print a unique number on every strip of medication. This unique number will not be serial but random number, which is combination of Alpha and Numeric characters.The numbers will be generated from the “Authentick” database and will be linked there to the specific Product. The numbers will not be replicated, across strip, product or Pharma Company. |
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When the consumer buys a strip of medicine, he would see a message (example below). |
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SMS a12bxy23 to 9999 |
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All he has to do is sms/text the code (in this case ‘a12bxy23’) to the number (here ‘9999’) on the strip. The code is received by the “Authentick system and cross-referenced against the database. If it finds a match it issues a positive reply about the drug. |
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2. QRCode/ 2D code: We propose that an additional QR Code/ 2D code on every Vial/Strip would be an added mechanism (since they are not easy to replicate – and it is easier to scan using a phone) for validating the authenticity of the strip.
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A mobile application to read this QR Code/2D code is being developed by Activecubes. This application would work on mobile phones across various platforms. The consumer would just have to download this free application once and can then use his phone he app once for free. Then use the phone to read the QR code anytime he buys drugs. |
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This application will communicate with the Authentick database at the back end and revert with information on authenticity of the strip or vial. |
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Awareness There must be enough education around the above solution so that ordinary consumers on the street know that they have power in their hands to verify the authenticity of a drug. While Pharma Companies have tried various safeguard mechanisms over time, a couple of factors which have made them fall short of expected impact are:
We believe that the “Authentick” solution is a winner since it also addresses the above issues. Benefits The benefits are obvious and significant for both the consumer as well as the firms.
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