Guaranteeing Product Authenticity: What Consumers Think About Authentication

Counterfeit goods have a social, economic, public health, and environmental impact on a global scale. Recent statistics estimate that the value of counterfeit and pirated goods could be worth just under 1 trillion in 2022, and cause the loss of up to 5.4 million jobs. Additionally, diverted and adulterated goods can cause a severe health risk and compromise the brand image of companies around the world.

Guaranteeing Product Authenticity: What Consumers Think About Authentication


Luckily, consumers are increasingly more interested in pursuing product authenticity – and technological advancements in smart packaging solutions support product authentication operations. Here’s why investing in a product authentication system for your business can give you that missing competitive edge you needed.

What Does Product Authenticity Mean?

Today’s consumers are increasingly interested in finding – and investing in – authentic goods, no matter whether they are shopping for food, skincare, or clothes. However, the marketing campaigns used to advertise the authenticity of products are the same to have caused the consumer’s loss of trust in the first place.

Indeed, recent statistics showed that just over 30% of consumers trust the brands they buy in, and even fewer trust the marketing campaigns of these brands. So, it isn’t surprising that consumers are looking for ways to certify the authenticity of a product by themselves.

Consumers perceive an authentic product as a good that is:

  • Original
  • Credible
  • Persistent in style
  • Scarce
  • Carry brand heritage
  • Accurate
  • Legitimate
  • Proficient

Thanks to today’s product authentication technologies and solutions, consumers can verify the origin of a product, learn more about its supply chain and distribution, and be in better control of their purchase decision-making.

Is Product Authentication Important for Consumers?

Each company’s supply chain continues to expand and become more dispersed. While this ensures that customers can benefit from international products and convenient shipping times, it has also increased the risk of counterfeit goods and fraud.

However, consumers aren’t oblivious to this issue, and they have started to look for products that are authentic and trustworthy. According to official statistics, 75% of consumers are willing to pay an extra 1-5% on the product’s price if this carries a zero-fraud certification. Here’s why this pursuit of authenticity is happening today.

A New Generation of Consumers

The generational shift in the worldwide market is something to consider. Today’s consumers are Millennials and Generation Z – dubbed in official research by McKinsey as the “True Gen”. This is because this generation like no other before values authenticity in brands, products, marketing, messages, and voice.

As these generations’ spending power is increasing, goods manufacturers, producers, and retailers should be concerned with how to protect authenticity and gain a competitive edge in their audience’s eyes.

Knowing and Trusting a Brand

Today’s consumers have lost faith in commercial brands and their marketing campaigns, but they are actively seeking new companies and products they can trust. And it is this trust to determine their loyalty.

For today’s companies looking to establish themselves in the market, understanding how to win the loyalty and trust of their customers is crucial. Since buyers tend to distrust marketing campaigns, transparency can be a more effective strategy. And transparency should not only exist in the message delivered to the company’s audience.

Indeed, through product authentication systems, it is easy to deliver higher levels of transparency and offer consumers a warranty of the product’s authenticity.

Increased Awareness of Environmental and Social Consequences

Thanks to today’s availability of information, consumers have become more aware of the impact of brands and manufacturers on society and the environment. This new level of awareness has empowered consumers to choose brands that have a positive impact on their communities and the planet – and are able to deliver proof of this impact.

Product authentication solutions are playing a vital role in increasing the good’s lifespan, reducing waste, and protecting the welfare of workers. And, facts about the product’s integrity, sustainability, and origin are immediately available to your consumers – an essential tool to rebuild trust.

Smart Packaging: New Frontiers of Product Authentication

New smart packaging solutions and authentication strategies – such as the Authena authenticity tag – are advancing the new frontiers of product authentication. From the use of blockchain technologies to safely and accurately record transactions, to NFC tags, RFID labels, IoT sensors and  smart packaging has enabled consumers, manufacturers, and retailers alike to regain control over the product’s journey from sourcing to consumption. Here are some of the benefits of introducing a product authentication solution.

Increased Accessibility of Information and Facts

NFC tags and smart labels are simple but extremely powerful packaging enhancements. They can be read with a smartphone or other smart device, allowing consumers to obtain all important information about a certain product in just a few moments.

Thanks to this simple solution, consumers can learn about the origin, supply chain, and manufacturing process. And, they create an unmissable opportunity for brands to tell more about their story, values, and mission.

A Tailored Track and Trace System

Whether your supply chain is localized or looking to expand at an international level, there are some vulnerable links that create an exponentially greater risk of fraud. Indeed, when there are exchanges between suppliers, merchants, retailers, and manufacturers, products can be tampered with, counterfeited, or diverted into unsuitable distribution channels.

Thanks to tailored blockchain solutions, NFC labels, and RFID tags, it is easy to monitor transactions, alongside quality indicators and product properties.

Protecting the Customer Experience

Products that have been adulterated, diverted, or tampered with can significantly affect the customer experience, and, thus, the way that customer perceives the manufacturer. Additionally, fraudulent imitations of premium, certified products can come with a severe health risk, especially in the case of healthcare, pharmaceutical, food, and skincare goods.

Smart packaging and product authentication solutions can help protect the health of your customers, guarantee product quality, safeguard your brand reputation, and prevent a scandal. The right solution can:

  • Monitor changes of chemical composition and temperature inside the package
  • Deliver information regarding transactions and journey progress
  • Ensure that a product reaches its destination
  • Add a seal of quality to the product

Tailored Product Authentication Solutions for Your Business

Each product travels through its own supply chain. As this chain expands, contracts, or changes, it can be hard for the manufacturer to guarantee authenticity, quality, consistency, and transparency.

Smart packaging solutions and tailored authentication technologies can help you redefine your brand’s relationships with your customers, establishing trust, loyalty, and respect. Partnering with a product authentication expert like Authena can help you discover the most suitable solution for your needs.

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