Fake products are of two types – one: counterfeit products and two: pass-off products. Counterfeit products are fake products that bear identical name of product/ packaging/graphics/colour scheme and even same name and address as the genuine manufacturer. Someone produces these to look exactly like real products other than the legal owner of the real products, trademarks and product packaging. Sometimes it is becoming more and more difficult to tell which is the real "Ponds" talcum powder and "Clinic Plus" shampoo from the fake products.
Pass-off products use similar sounding or are similar in spelling (for example "Luk" for "Lux", "510" for "501", "Saveena" for "Sabeena", "Sun Max" or "Super Master". They use similar type of packaging or colour or designs. They come out with the motive of misleading and cheating ordinary consumers who are uneducated or in a hurry in purchasing products.
A study conducted by AC Nielson, a research agency reveals that FMCG industry loses around 2500 crores annually to counterfeits and pass-off products. According to Ashok Chhabra, Executive Director, P&G the fake products are affecting the sales of leading brands to the extent of 20 to 30 percent. Another recent survey conducted by AC Nielson reveals that top brands in India are estimated to lose up to 30 percent of their business to fake products. Besides the loss of revenue, the leading companies also face the loss in the damage to brand image and brand loyalty of consumers.