Pick your category, adjust the counterfeit share, margin and warranty cost, and see what fakes cost you every year. Then price a serialised anti counterfeit code and product authentication program against it to find break-even recovery and payback in months.
The method has four parts. First, revenue lost: if fakes are s percent of the units that sell under your brand name, your reported revenue is the other 100 minus s percent, so the fake volume at your prices is revenue × s ÷ (100 minus s). Second, margin lost: only the gross margin on that volume is cash you would actually have earned, because the cost of goods would have been spent to make it. Third, warranty and complaint cost: claims, replacements and service visits on products you never manufactured, which most brands pay quietly rather than argue with a customer. Fourth, the program: a serialised code on every unit plus a platform to verify scans and photos, compared with the share of the loss you expect to recover. The category defaults are editable estimates to get you started; across programs Unotag runs the observed counterfeit share ranges from low single digits in pharma OTC to a fifth of the market in some auto parts and lubricant lines, and it varies more by geography than by category.
| Category | Starting counterfeit share (editable estimate) | Where fakes typically enter |
|---|---|---|
| Wires and cables | 12% | Wholesale markets, smaller electricians' counters, online marketplaces |
| Lubricants | 15% | Roadside garages, refilled genuine bottles, spurious drums |
| Auto parts | 20% | Two-wheeler spares counters, service garages, e-commerce listings |
| Pipes and fittings | 10% | Plumbing hardware shops, project sites buying on price |
| Paints | 8% | Refilled tins at small counters, low-cost putty and primer |
| FMCG | 7% | Rural general trade, unauthorised repacking |
| Pharma OTC | 5% | Chemists outside the stockist network, online |
| Cosmetics | 12% | Beauty parlours, unauthorised online sellers, imports |
| Electricals and switches | 12% | Electrical hardware shops, project procurement on price |
| Agri inputs | 15% | Village dealers selling spurious seed, pesticide and fertiliser |
A serialised anti-counterfeit code answers one question: has this exact code been issued, and has it been scanned before, where and how often. It catches copied codes, reused codes and codes appearing in the wrong territory. It does not catch a fake that carries no code, or a photocopied label on a product that never gets scanned. That is where image-based authentication comes in, and where most first attempts fail. Genuine packs are not identical: print batches drift, converters change, ink density varies, labels scuff in transit. A model trained on a single reference image flags genuine stock as fake the first time a new batch ships. The model has to learn genuine as a distribution of acceptable variation, and be retrained as that distribution moves. Unotag's approach combines the code with no-label, image-based checks so a field officer or customer can photograph a pack and get a verdict without a special label; the technical detail is in anti-counterfeit solutions and the buying guide in anti-counterfeit software.
The recovery percentage in the calculator is deliberately conservative. Scans also feed a loyalty program for electricians, mechanics and retailers, which is why most brands run both on the same code; the wider cost picture is in what counterfeits cost your brand.
An anti counterfeit code is a unique serial number, usually printed as a QR code, on every unit. Scanning it checks the code against the brand's issued list, records where and when it was scanned, and flags codes that are unknown, already used or appearing in the wrong territory.
Anti counterfeit software generates and tracks serialised codes, verifies scans by customers, dealers and field teams, detects duplicates and diversion, scores image checks on pack photos, maps hotspots to dealers and localities, and feeds evidence to legal and field action.
Image-based authentication compares a photo of the pack or product with a learned distribution of genuine print, colour and construction, so no new label is needed. It is best used alongside serialised codes, and it must be retrained as genuine packaging batches drift.
Estimate the counterfeit share of units sold under your name, convert it to revenue at your prices, take gross margin on that volume, and add warranty and complaint cost on fakes. Use market surveys or seizure data for the share; category defaults are starting estimates only.
Two parts: a serialised code per unit, typically well under a rupee depending on print method, and a platform fee for verification, alerts and analytics. Unotag pricing runs ₹30k to ₹3L a month by active members. The calculator compares this with margin and warranty cost recovered.
Yes, a static code can be photocopied. Serialised codes defeat this because each is verified against the issued list and its scan history: a copied code shows duplicate scans in different places. Pairing codes with image-based checks catches fakes that carry no code at all.