In December 2019, the Shanghai police received a report from the LV Group that someone was selling suspected counterfeit LV brand bags.

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In 2020, the Shanghai police cracked a huge case of counterfeiting registered trademarks, smashed a criminal gang that manufactured and sold counterfeit LV brand bags, arrested 62 suspects, seized more than 30 counterfeit equipment, more than 2,000 fake bags, and counterfeit LV bags. There are 1,200 brand business cards, 62,400 certificates, 36,000 labels, and 123,690 brand logos, with a case value of 110 million yuan.

At the beginning of 2021, this illegal and criminal case of counterfeiting LV bags and implanting labels in counterfeit bags to deceive consumers has attracted widespread attention. Criminal gangs colluded with the counter clerks of genuine products to illegally dismantle plate making by using genuine products to produce counterfeit products and cross-border distribution “an industrial chain”.

According to the official report, the criminals saw the popularity of label bags and saw the tutorial on how to swipe tags on NFC access control cards on the Internet. It is publicized that the genuine link of the official website can be scanned through the built-in label of the “LV bag”, so as to deceive consumers.

According to reports, the online shopping platform searches for pictures of corresponding bag styles, and imports the information through corresponding steps. It only takes one person an hour to complete the label import of nearly 150 bags. “Independent research and development” is more “real” than the official LV, so that many consumers mistakenly think that it is genuine and deceived.

According to public information, counterfeiters have also established a “label group” to “communicate” the use of this technology. The price of 0.2 yuan is resold.

However, only the bags launched by LV after 2021 have built-in NFC labels, and the core information stored is not completely open to consumers.

Table of Contents

What is NFC or NFC Labels?

NFC, or Near Field Communication, is not a new technology, and rapid adoption began in 2004 when NXP, Sony, and Nokia created an NFC Forum, which developed a set of specifications to facilitate the creation of new consumer products two years later , committed to making it an important mobile phone component after Bluetooth. In 2007, Nokia also launched its first business phone with NFC technology.

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Due to the lack of landing support, NFC was not stagnant in the first 10 years of its birth. Until 2015-2018, metropolises such as Shanghai, London, and New York successively used NFC technology in subways and buses to realize payment, entry/boarding, and NFC It became popular in the field of public transportation, and its application field was further expanded to consumer electronics such as printers and earphones.

NFC inherits the electromagnetic induction technology of RFID (non-contact radio frequency identification), evolved from the high-frequency RFID technology, and is considered to be the “little brother” of RFID technology.

Taking the Internet of Clothes of Heilan House as an example, the frequency range of the UHF RFID used is 433MHz and 860-960MHz. A salesperson can use an RFID reader at a distance of tens of meters without opening the box. Scan bulk items.

Why is NFC Labels Used on Expensive Goods Such as LV Bags?

A few cents cost, Hundreds of billions of market.

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According to Footwear News, the counterfeit goods industry has become a trillion-dollar economy around the world, and if it is not taken seriously, it has the potential to have a devastating impact on genuine brands. For expensive brands, the gross profit of many luxury goods is still as high as 80%, and counterfeit products can even achieve higher gross profit due to low cost, so product anti-counterfeiting is very important.

The uniqueness and non-reproducibility of NFC make it more secure in anti-counterfeiting. In the past, fashion luxury accessories were anti-counterfeited by printing QR codes and holograms, but they were easy to copy and forge. In contrast, NFC tags are equipped with serial numbers, and a code corresponds to a product, which cannot be copied or forged. NFC also has a more powerful “rolling code” technique that can only be read and authenticated by combining tokens generated “on the fly”.

In addition, NFC is developed on the basis of RFID and combined with wireless interconnection technology, which can interact with mobile phones or other devices.

NFC has become the standard configuration of smartphones, which means that tags can be read without buying new devices, which greatly expands the application margin of NFC.

Brands can interact directly with consumers in terms of product traceability, product authenticity, and non-contact social interaction. The unique, scarce, and absolutely high-quality characteristics of luxury goods allow consumers and practitioners to easily obtain voucher information through mobile phones and trace product information in real time.

Big data information from consumers, in turn, prompts brands to continuously improve products and shopping experience.

Summary and Outlook

So far, there are a large number of anti-counterfeiting NFC labels used in luxury goods and items, which is undoubtedly another progress in technology.

Newbega Company is a professional NFC labels manufacturer and solution provider with more than 20 years of manufacturing experience. If you have any needs, please click the button below to get in touch with us.

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