How to Choose the Right Anti-Counterfeit Label for Your Product?

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  1. Clarify Core Needs: Understand Why You Need Anti-Counterfeiting
    The first step in selecting an anti-counterfeit label is to identify your most pressing need — different companies face different challenges, and your core requirement will directly influence the appropriate technology. Common needs generally fall into three categories:

(1) Basic Needs: “Low-Cost Protection Against Low-End Counterfeiting”
If your product is mainly targeted by small-scale counterfeiters (e.g. low-quality knockoffs sold at low prices in rural or informal markets), the goal is to create a basic deterrent at minimal cost. These products often have low profit margins and unit prices (e.g. daily necessities or low-end food), so counterfeiters are unlikely to invest in complex forgery techniques.

Example:
A snack brand discovers fake versions of its product being sold in rural supermarkets. The packaging looks similar, but the ingredients are poor in quality. In this case, physical security features such as fluorescent ink + microtext are sufficient. The cost increases by only a few cents, but counterfeiters often lack the equipment or access to such materials.

(2) Intermediate Needs: “Defense Against Sophisticated Fakes + Channel Control”
If the product faces mid- to high-level counterfeiting, where counterfeiters mimic detailed packaging or obtain semi-finished components through informal means, or if there are issues with unauthorized cross-region sales and pricing chaos, then the product requires both anti-counterfeit and traceability. These products usually have moderate to high unit prices (e.g. mid-tier liquor or cosmetics) and are often harder to control through distribution channels.

How to Choose the Right Anti-Counterfeit Label for Your Product: Clarify Core Needs: Understand Why You Need Anti-Counterfeiting.

Core demand:
Let consumers verify authenticity while enabling the brand to trace the product’s distribution path. In this case, choose digital solutions like QR codes with unique IDs. Consumers scan to check authenticity; the brand tracks scan locations to detect channel violations or gray market activity.

(3) High-End Needs: “Defense Against Technological Counterfeiting + Brand Enhancement”
Luxury goods, high-end pharmaceuticals, and precision instruments may face technologically advanced counterfeiters who can replicate physical details and even forge basic digital labels. In such cases, brand trust is highly sensitive, and the anti-counterfeit label itself becomes part of the brand value.

Core demand:
Use multi-layered technology + brand reinforcement. Solutions may include blockchain encoding + NFC chips + laser holograms. Blockchain ensures the code cannot be tampered with, NFC chips enable close-range verification (to prevent QR code duplication), and holograms enhance visual appeal.
Example:
A luxury watch brand embeds an NFC chip in the back of each watch. Consumers can tap their phones to verify encrypted info. The chip is hidden and will be damaged if removed, preventing fraudulent transfer.

  1. Match the Product Characteristics: Labels Should Integrate, Not Burden
    An anti-counterfeit label must match the product’s form, value, and usage scenario. Otherwise, it may become a liability — for example, placing a $0.50 label on a $1 product, or applying a paper label to a refrigerated item that fails when wet.

(1) Product Price & Profit Margin: Set the Budget for Labeling
The cost of the anti-counterfeit label should remain within a reasonable proportion (typically 1%–5% of the product’s unit price):

Low-cost, high-frequency items (e.g. bottled water, tissues):
Priced ≤ ¥10 ($1.5), choose labels costing ≤ ¥0.1 ($0.01). Use basic physical methods, such as tamper-evident bottle caps + thermochromic ink. Cost increase per unit: ~¥0.02.

How to Choose the Right Anti-Counterfeit Label for Your Product: Clarify Core Needs: Understand Why You Need Anti-Counterfeiting.

Mid-range products (e.g. skincare, small appliances):
Priced ¥30–¥200, can afford ¥0.1–¥1 per label. Combine physical + digital features, like QR code + fluorescent fiber paper. Total cost under ¥0.3, while providing both authenticity and forgery resistance.

High-value products (e.g. watches, supplements ≥ ¥500):
With higher profit margins, labels costing ¥1–¥5 are acceptable. Consider NFC, RFID, blockchain, or even custom-made materials like branded holograms.

(2) Product Form & Usage Environment: Prevent Label Failure
The label’s material and application method must suit the product’s storage, transportation, and usage conditions:

Moisture-prone or liquid products (e.g. beverages, shampoo):
Use waterproof labels (e.g. PET film) to prevent smudging. For refrigerated goods (e.g. yogurt), ensure low-temperature resistance to avoid adhesive failure.

Fragile or irregularly shaped items (e.g. glassware, jewelry):
Labels should be thin, easy to apply, and visually unobtrusive. Consider invisible marking methods like laser-engraved microcodes directly on the product instead of adhesive labels.

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