Tackling the counterfeit problem has been a 20+ year journey for companies around the world. It’s been a problem that both the government, brands and private companies have attempted without success. There are major issues that arise when creating a solution to this $0.5 trillion dollar issue:
1) The adoption process is too slow and unscalable
2) It’s easily replicable
3) No data is tracked or secured
Here are some of the ways stakeholders have attempted to solve the counterfeit industry and why Peeke could be the most secure and scaleable solution to date.
GOVERNMENT
Several governments have adopted laws to promote digital security within the “Made in” programs to completely break down counterfeiting and black markets. Although they had great intentions, these programs are slow, inefficient and the counterfeit market is still growing year over year.
BRANDS
Brands themselves have attempted to create things like cards and holographic stickers that authenticate their products. These cards have been easily replicated and the serial numbers for authentication have also been manipulated for many well known brands.
PRIVATE COMPANIES
Many of our competitors in the world adopt technologies based on QR-CODE or RFID. For example:
Italcheck:
Each of the brands that onboard onto italcheck receive IC company code and to the IC product code with its QR code / NFC for the traceability of products.
Downfalls: QR codes are easily replicable and the scanning can be a long process. The biggest downfall is that scanning a QR code is a one-way transaction. Information goes to the customer, while little actionable information is transmitted back to you.
Tracetoo:
Tracetoo helps companies that produce all kinds of products by providing them with an anti-counterfeit certification system. When you join the Tractoo program, each product in your catalogue receives an alphanumeric RFID code. The codes are one-of-a-kind and follow each item from production to sale, along the entire chain.
Downfalls: RFID tags are usually larger than barcode labels which may deter some brands. Tags are also application specific as no one tag fits all which makes them very expensive. More than one tag can respond at the same time which may cause friction.
Both options can be replicated, are not scaleable nor secure. One of the other notable opportunity losses from both options is that they don’t involve the end consumer in this ecosystem. By including the end consumer, you are able to:
1) Create more value to the brand by creating a point of interaction with the end consumer
2) Create organic advocates that will promote authenticity for the brand
PEEKE
NFC beacons are printed in-house. Each receive a cryptocoded ID and then installed onto real products by the brands & manufacturers. The Peeke mobile app used by consumers detects and decrypt the beacons, sending the transaction(tx) information through an SSL protected socket to a custom made Node.js server. This information is stored temporarily into a MongoDB and then onto the Ethereum Blockchain making it public forever.
Why is Peeke Different?
There are no competitors on the market who have adopted NFC + Crypto direct hardware. This enables us to easily trace (if requested) even an ownership path in the after-sale space as well as to be absolutely recognized as decentralized on a legal level, with a considerable facilitation of the strategies related to certification.
Why would brands want to work with Peeke?
DOLLARS: Brands could collectively save approximately 3 trillion dollars from counterfeits by 2027. Brands are able to collect significant data from consumer interactions with the Peeke app and beacon which is stored in the Ethereum ledger forever.
DATA: Some of the data that brands can receive from the beacon are as follows: Information of false verification scans including number, picture, and geo-location, Batch/lot map heap distribution based on scans or frequency, Conversions based on scans vs. Purchases, Custom experiences such as product launches, rebates, or discount codes, Product reviews
NEW REVENUE STREAMS: Brands can push their products into the marketplace for sale. This will be a new and secure distribution channel for brands.
Why would consumers download the Peeke App?
PROTECTION: Consumers are protected against harmful and low quality counterfeit items.
BRAND BONUSES: The Peeke app is digitally equipped with alternative documents, such as guarantees, product reviews, instructions for use and advertising material, thus avoiding paper waste and its cost.
REWARDS: Consumers are able to collect PKE tokens as they authenticate products and purchase discounted products in the marketplace.
