Testimonials

Suntory Holdings Limited

Business division:Group Governance Department
Person in charge:Director, Ms.Yuko Hatori
      Manager, Mr. Keiichi Yamamoto
      Risk Mangement Promotion, Mr. Masato Handa

Achieving Improved Operational Efficiency Through the Patterning and Regulation of Counterfeit Products

Suntory Holdings Limited, which develops and sells supplements including the "Sesamin" series, faced the challenge of counterfeit goods becoming more accessible to customers, thereby compromising safety and security, particularly in the Asian market. To address this issue, the company implemented IP FORWARD's online monitoring service to reduce the points of contact between counterfeit products and customers.

Prioritizing Customer Safety and Security

Hatori: We first became aware of the existence of counterfeit products when our Taiwan office received inquiries from customers asking, "Is this genuine?" after they had purchased what they thought were our supplements. Our products are only sold through official online stores, so it's impossible for items purchased from those sources to be fake. Therefore, we were surprised to learn that counterfeits existed.

Yamamoto: Upon further investigation, we found that the customers had purchased from a different website and that many of these products were being shipped from ports in China. It appears that the counterfeits are made in China, listed by Chinese vendors on C-to-C or B-to-C sites, and then purchased by customers in Taiwan.

Hatori: While the counterfeit products we have identified so far may not be toxic, there is no denying they are made in unsanitary conditions. As a manufacturer dealing with products that are ingested, customer safety and security are our top priorities. Thus, beyond protecting our brand, we believe it is our responsibility to safeguard the physical and mental health of our customers.

The Paradigm Shift Brought by Digitalization

Handa: The issue of counterfeit products has evolved over time. Previously, the main method of trading counterfeit goods was through real-world interactions between individuals. However, the situation has completely changed now. With the impact of the COVID-19 pandemic, the use of e-commerce has expanded, resulting in increased opportunities for counterfeit products to infiltrate.

Hatori: The shift from offline to online has led to a fragmentation in the trade of counterfeit goods. They are now produced, shipped, and purchased in small increments, allowing these products to easily reach individual consumers. Against this backdrop, we considered implementing IP FORWARD's online monitoring to reduce the points of contact between counterfeit products and customers.

Yamamoto: I believe the strong network presence of IP FORWARD in China and Asia played a significant role. Since the initial discovery of counterfeit supplements occurred in Taiwan, where counterfeit products are prevalent and could potentially impact our business, it was imperative to implement measures there.

Efficient Counterfeit Prevention Strategies

Handa: We implemented online monitoring starting from December 2021. Initially, we were groping in the dark about how to deal with many counterfeit products, but through the patterning and regulation of counterfeit goods, our work efficiency has improved. For example, supplement packages include not only those currently being sold but also ones from one or two years ago. By sharing this information with IP FORWARD, we accumulated knowledge such as "This pattern is from an old package, so it's not counterfeit," and established rules.

Yamamoto: Patterning counterfeit products has made it easier to devise specific countermeasures. This is a significant advancement. Initially, we didn't know what information was necessary, but receiving specific advice like "Can you provide all past package designs?" clarified what was needed and was very helpful.

Hatori: Trying to address counterfeit prevention from all angles can be inefficient. However, as we consider it one of our social responsibilities, we are grateful for IP FORWARD's support in making these efforts as efficient as possible.

To counter counterfeiters, we aim to combat them nationwide in Japan.

Yamamoto: Essentially, counterfeiters create exact replica products, making it difficult to distinguish them as counterfeits. However, there are subtle differences. With IP FORWARD's help, we identify these variances, record them internally as recognized points, and proceed with their removal.

Handa: Given our priority of requesting the removal of sites to prevent sales, we haven't yet identified the manufacturers. However, we're beginning to work with IP FORWARD on initiatives that could potentially lead to the exposure and crackdown of these manufacturers, possibly eradicating counterfeit products.

Hatori: It's incredibly challenging for our company alone to eradicate counterfeit products, so we're also exploring collaboration with other companies in the same industry. We're discussing the need to strengthen horizontal collaboration and counteract counterfeits nationwide. Particularly in the era of centenarians, we believe supplements play a significant role. Our goal is to continue providing customers with safe and trustworthy products through proactive measures against new counterfeiting tactics.

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