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June 17, 2009
HK launches measures against counterfeit products
By Carol Ko | MIS Asia
Hong Kong has launched a product authentication solution to help consumers identify whether the products they bought are genuine, including bird's nest, health supplements, Chinese medicine and consumables at the Hong Kong airport.

The product authentication programme was funded by the government chief information officer (OGCIO) of the Hong Kong government. It will enable the public to authenticate products through the Internet or via short message service (SMS).

Built on the beta version of GS1 Hong Kong's BarcodePlus's website, the product authentication solution is a one-stop product quality information portal that will officially go live in November.

In a move to help brand owners protect the integrity of their brands, four Hong Kong-based companies have in the last month piloted the implementation of the new solution. These include Nuance-Watson (HK), a leading retail operator at Hong Kong International Airport, Comvita HK, a health supplement supplier, First Edible Nest, a traditional Chinese ingredient supplier and Po Sum On Medicine Factory, a manufacturer of Chinese medicine.

"The underlying objective of the product authentication solution is to increase brand integrity and bolster consumer confidence. In the long term, these efforts will help enhance Hong Kong's reputation for providing authentic goods at a reasonable price," said Anna Lin, chief executive of GS1 Hong Kong.

GS1 Hong Kong as a non-profit organisation founded in 1989. At present, it is the only organisation that is authorised by the government to issue and administer GS1 identification numbers in Hong Kong, including barcoding services, business-to-business e-commerce services, global data synchronisation (GDS) and electronic product code / radio frequency identification (EPC/RFID).

Secure codes and kiosks

The product authentication solution provides consumers with a convenient and reliable way to distinguish counterfeits from genuine products. The solution is based on an automatically generated secure VerCode which is unique to each individual product item. To verify a product's authenticity, consumers simply input the VerCode hidden under a secure label on the item they want to check. This can be done directly by logging on to the Barcode Plus website or by sending an SMS message.

The pilot programme also includes the installation of RFID smart kiosks in 'Travelcare Express' operated by Nuance-Watson (HK) at Hong Kong International Airport and the First Edible Nest shop located in Tsuen Wan's Luk Yeung Galleria.

Consumers can track selected products through critical points in the production line simply by scanning the RFID label on the product at the Nuance-Watson duty-free shop.

While it will be useful to consumers, brand owners can also benefit enormously from this anti-counterfeit and brand integrity solution. It will provide participating companies with a trusted channel to deliver product quality information to consumers and at the same time protect their supply chains and brands from the threat of counterfeit products.

Pilot programme

"Thanks to robust support from the government and the pilot companies, the pilot programme will provide a valuable reference, showcase the potential business benefits and, hopefully, speed mass market adoption of the solution for the benefit of the community," said Lin.

Alessandra Piovesana, regional managing director-North Asia, Nuance-Watson (HK), said: "Nuance-Watson (HK) is the largest retail operator at Hong Kong International Airport with more than 40 stores across two terminals. With this innovative product authentication solution and smart RFID kiosks, travellers and local citizens will be able to shop with complete confidence at Hong Kong's airport."

Ronnie Butt, general manager, Asia, Comvita HK, said: "We believe that this [product authenticity project] will be mutually beneficial for both consumers and retailers. Its accurate, real-time information sharing ensures product authenticity and enhances consumer confidence. For us as brand owners, it proactively combats counterfeit products, protecting the reputation of all genuine brand owners. We are looking forward to seeing more companies in the sector joining in to share the remarkable success of this programme."

Once the pilot programme is completed, GS1 Hong Kong will promote the solution to the business community with our brand owner members as the primary target users. "In the long run, we hope to see the product authentication solution helping to sustain the confidence of consumers in Hong Kong brands and safeguard Hong Kong's reputation as a shoppers' paradise," said Lin.

http://www.infoworld.com/t/security/hk-launches-measures-against-counterfeit-products-079?page=0,0

http://www.gs1hk.org/files/gs1/PA%20pilot%20project/PALeaflet_May09_Eng_Final.pdf