Tuesday, March 10, 2015

Start-up unveils smartphone app to check fake goods

OrigiCheck chief technology officer Ondieki Obare (left), chief executive Haron Kiriba (right) and Kenya National Chamber of Commerce and Industry trade development manager Peter Biwott during the launch of Origicheck app. PHOTO | DIANA NGILA 
By Sandra Chao-Blasto
In Summary
  • The Kenya Association of Manufactures estimates that local industries lose more than Sh30 billion each year due to the counterfeit trade while the government loses about Sh6 billion in potential tax revenue.

A Kenyan start-up has launched an anti-counterfeit mobile application that helps consumers verify if a product is genuine.
Using the Origicheck app, consumers can send a short code to verify authentic goods from fakes. The OrigiCheck solution uses customised labels from manufacturers.
Haron Kiriba, the chief executive of OrigiCheck said manufacturers and distributors of cosmetics, computers, tyres, appliances, farm inputs, packaged foods and other household products are set to benefit from the solution.
“Contrabands will continue to exist as long as there are products that are not protected. Origicheck provides a bottom-up approach in the fight against counterfeits putting more power to the manufacturers and provides consumer a way to confirm genuine products from the point of purchase,” he said during the launch of the anti-counterfeit solution.
The Kenya Association of Manufactures estimates that local industries lose more than Sh30 billion each year due to the counterfeit trade while the government loses about Sh6 billion in potential tax revenue.
Traders within the East African Community (EAC) are estimated to lose Sh180 billion annually from counterfeits and contraband goods in the region.
The region’s Council of Ministers is expected to introduce the EAC Competition (Amendment) Bill 2015, which will establish a mechanism set to eliminate counterfeits and piracy trade.
Counterfeit traders block manufacturers from accessing up to 70 per cent of the market, said Mr Kiriba.
“Manufacturers spend a lot of money seeking legal redress over fake goods, but if we empower the consumer to know the superior brands from contrabands, they will avoid the goods which will put counterfeiters out of business,” he said.
On listing with the start-up, manufacturers and distributors receive customised labels to place on their products, consumers use the USSD code or SMS channel to verify a genuine product by keying in the code at no cost.
Each of the labels contain an auto-generated code that is only identifiable by the manufacturers and Origicheck. At the risk of having the labels on the OrigiCheck platforms counterfeited, Mr Kiriba said, they have put up safeguards, making each product number unique. Android-based mobile phone users can download the app from free on the Google Play Store.
“A majority of Kenyans own smartphones so it was only prudent to also carve out a solution in the form of a smartphone application,” Mr Kiriba said.
The Origicheck mobile app also allows a customer to confirm warranty period on the product, get more information on the authorised dealers and distributors.
Consumers can also upload photos of fake products and the name of the manufacturers and post them for blacklisting.
“When consumers realise that they have bought fake goods, they lose confidence in the brand and move on to other alternative products in the market and the manufacturer slowly starts to lose business,” he said.
Manufacturers can have a direct relationship with the consumers and receive feedback on the quality of their products through the application.

They can also track their products and distribution channels to see exactly where there is a lapse. Mr Kiriba said the mobile-based solution will help manufacturers and distributors regain 10 per cent of the market lost to counterfeits in the first six months.

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