For high-value products, authenticity matters both at first sale and on the second-hand market.
Industry overview
In luxury goods, a large part of the price comes from the brand's reputation, the design and the assurance that the product really did leave that brand's workshop. Bags, leather accessories, clothing, perfume and eyewear are easy to carry, can be sent in small parcels and can be imitated visually. A counterfeit therefore means more than lost sales; it affects the customer's trust in the brand, the product's second-hand value and the reputation of the points of sale.
As sales channels have multiplied, the risk has spread with them. A product changes hands between stores, authorised dealers, airport sales, e-commerce sites and second-hand platforms, while counterfeit listings often use the brand's own campaign images. In this environment, giving a product a verifiable identity, keeping a record of which channel it passed through and documenting unauthorised use online become an ordinary part of day-to-day brand protection.
Figures
Estimated share of counterfeit and pirated goods in EU imports in 2021 (around $117 billion)
Source: EUIPO and OECD, Mapping Global Trade in Fakes 2025 press release, 2025Sales lost by the legitimate sector in the EU to counterfeit bags and luggage (2013-2017 annual avg.)
Source: EUIPO, 2020 Status Report on IPR Infringement, Tablo 1, 2020Annual direct sales lost in the EU to counterfeit clothing, footwear and accessories (2013-17)
Source: EUIPO, 2020 Status Report on IPR Infringement, Tablo 1, 2020Risks
Every industry has its own risk profile; solutions are configured around those risks.
On leather bags and accessories, stitching, metal fittings and logo printing are imitated better and better. A sales adviser or a customer struggles to tell a product apart on looks alone. That can lead to a counterfeit coming back into the store through returns and exchanges.
Products allocated to a particular market can go on sale in other countries or in discount channels through unauthorised intermediaries. When it is not known which distributor a product was delivered to, finding the source of the leak and establishing a breach of contract becomes difficult.
Because the second-hand market for luxury goods is active, a buyer wants to know whether a product is genuine before buying. Where there is no way to verify, counterfeits mix in among the real items and the brand's second-hand value suffers.
Counterfeits are often sold through social media accounts, advertising and lookalike domain names using the brand's campaign images. Because these listings appear and disappear quickly, failing to document a detection with its date and content weakens the takedown request.
Our approach
Grafex, Tagvex and Authex can be used together or separately in any industry.
Smart packaging
An invisible signature is worked into the packaging; a copy cannot pass verification.
Grafex sitesi
Grafex places a signature into the design of existing packaging elements such as the box, the dust bag, the tag card and the warranty document that is invisible and whose copy cannot pass verification. Printing happens on your existing line; the brand's carefully chosen packaging look and colour language do not change. A sales adviser or a customer can scan the packaging with the mobile app and confirm its authenticity.
Secure labels
A unique number for every product; every step from production to customer is recorded.
Tagvex sitesi
The Tagvex secure label gives every product or every batch a unique number and records its passage from the workshop, the warehouse, the distributor and the store. That makes it visible when a product allocated to a particular market is scanned in another channel. A duplicated code comes to light through scans at an unexpected point or repeated scans.
Digital monitoring
Brand risks in digital channels are detected, prioritised and turned into action with evidence.
Authex sitesi
Authex monitors unauthorised use of the brand on marketplaces, social media, digital advertising, domain names and app stores. Counterfeit listings, fake shops and advertising using brand images are documented with their date and content; takedown requests are filed and followed to conclusion, and whether removed content reappears is also monitored.
Example scenario
As a leather bag leaves the workshop it is given a unique number with a Tagvex label; its box and warranty card are printed with the Grafex signature on your existing line.
As the bag is sent from the central warehouse to a particular store, it is scanned with the mobile app at every delivery point and the movement is recorded.
The sales adviser scans the product with the mobile app in front of the customer; the customer can run the same verification on their own phone.
Years later, someone buying the bag second hand scans the label and the warranty card to confirm its authenticity; meanwhile Authex monitors counterfeit listings of the same model and follows the takedown process.
Regulation
The main rules that apply in your industry, or will soon take effect.
From 19 July 2026 it is prohibited to destroy unsold consumer products such as the clothing and clothing accessories (including those made of leather) listed in Annex VII; the ban does not apply to micro and small enterprises and starts on 19 July 2030 for medium-sized ones. Keeping a record of which channel unsold stock was directed to therefore gains importance.
A digital record holding product, component and material information, linked to the physical product through a data carrier such as a QR code. Textiles are among the product groups expected to be brought into scope gradually in the 2027-2029 period; product-level identity and record infrastructure can support that preparation.
Applying since 13 December 2024, the regulation requires products to carry identifiers such as a type, batch or serial number and supply chain information to be available on request for 6 years. Online marketplaces are also obliged not to publish listings that lack minimum safety and traceability information.
Under Article 57 of the Customs Law and Articles 100-111 of the Customs Regulation, rights holders can apply electronically for goods infringing their rights to be detained at customs; an accepted application is valid for one year. Having information that identifies the genuine product ready makes assessing suspect goods at customs easier.
This section is for information only; rely on official sources for current obligations.
FAQ
No. The Grafex signature is placed inside the existing design and printed on your existing line. The look of the box, the bag or the card does not change; the signature cannot be seen by eye.
No. Verification happens with the mobile app on a smartphone and needs no separate reader device. The customer, the sales adviser and a second-hand buyer can all use the same method.
Tagvex records which distributor and store a product was delivered to. When a product is scanned at a point outside its allocated market, that appears in the records and it becomes easier to examine at which change of hands the leak occurred.
During a return, the product label is scanned with the mobile app and it is checked whether the number matches the record for that product. A code with no record, one that appears to belong to another store, or one scanned in different places before, calls for further examination.
Authex monitors social media accounts, advertising, marketplace listings, domain names and app stores. Every detection is documented with its date and content, a takedown request is sent to the relevant platform and followed to conclusion; whether removed content reappears is also monitored.
Blog
How the grey market and channel diversion arise, why they harm brands, and how traceability data makes those movements visible.
8 min read
Collecting evidence, filing notices and following removals against counterfeit listings on marketplaces and social media, and dealing with repeat sellers.
7 min read
What batch numbers, unique serial numbers, GTIN, SSCC, GS1 DataMatrix and GS1 Digital Link each cover, and when each one is enough.
8 min readOther industries
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In the first meeting we review your product, sales channels and the risks you face, then recommend a verification method that fits.
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