Brands, retailers, and third-party sellers using e-commerce platforms are advised to ensure their products meet the regulatory and safety requirements of the marketplace.
“Around $1.8 trillion every year is being lost due to counterfeiting. Fake products destroy 10 percent of top line revenue and erode the credibility of brands. Worldwide counterfeiting grows at 15.6 percent each year,” said Ryan Gonzales, consumer and retail technical sales specialist at SGS Philippines Inc.
Gonzales said brands thus need stricter self-regulation due to a lack of global intellectual property laws.
He said the SGS offers brand protection solutions that are used to help brands combat piracy, secure brand reputation and integrity, combat revenue loss, and ensure consumer confidence.
Industries served include high-end/luxury products, electrical/electronic, e-commerce, pharmaceuticals, hardlines, and cosmetics, personal care and household, he added.
Meanwhile, Gonzales underscored the importance of product safety testing to prevent product recalls abroad and the costs that go with them.
“What happens when there is product recall? Brand image is destroyed, the reputation of the company is destroyed because you cause harm to your consumers and the general public,” he said in Filipino.
Gonzales said product recalls also entail costs that companies may no longer recoup.
He said it is thus imperative for firms to comply with certain regulations imposed by countries where products are exported.
Gonzales cited as an example global restricted substances regulations on textile and footwear products.
“To ensure the health and well-being of consumers and the environment, governments are introducing more and wider restrictions on substances that can be found in textile and footwear products. Consequently, testing of ingredients is an important process in any textile and footwear manufacturer’s quality control procedures to ensure they are delivering a compliant final product,” he added.