Manoj Kochar
Immediate Past President at ASPA
The Tvc Media Team had the privilege to speak with Mr Manoj Kochar, Immediate Past President of the Authentication Solution Providers’ Association (ASPA)—a globally recognised non-profit organisation established in 1998 that has been leading efforts to build a strong authentication ecosystem in India. With over three decades of experience in authentication solutions as Director and co-founder of Holoflex Limited, Mr Kochar has been instrumental in introducing and advancing hologram technology in India. He holds the unique distinction of being the first Asian to chair the International Hologram Manufacturers Association (IHMA) and continues to contribute to the global authentication ecosystem through his leadership roles.
In this insightful conversation, Mr Kochar addresses the increasingly critical issue of counterfeiting in the apparel industry—one of ASPA’s key focus areas—discussing how counterfeit apparel undermines brand value, misleads consumers, and negatively impacts both the industry and the economy. He offers deep insights into the scope of the problem, its consequences for consumer safety and business integrity, and potential solutions, including the role of authentication technologies and regulatory measures in combating the illicit economy.
What is the current scope and scale of apparel counterfeiting, and how does it affect the broader economy and legitimate businesses?
Apparel counterfeiting has become a deeply entrenched challenge within both the global and Indian fashion ecosystems, fuelled by fast fashion cycles, easily replicable designs, and the explosive growth of e-commerce. As counterfeiters increasingly leverage digital platforms, especially social media and unregulated online marketplaces, they bypass traditional retail scrutiny and gain direct access to consumers, making detection and enforcement significantly more difficult.
According to the International Chamber of Commerce, counterfeit goods constitute up to 3.3% of global trade, amounting to several hundred billion dollars annually. Apparel is one of the most affected sectors, with fake products circulating across both physical markets and digital storefronts. In India, the problem is magnified by a rapidly expanding consumer base, digital adoption, and informal retail networks. The ASPA–CRISIL 2022 Report identified apparel as one of the most counterfeited product categories in the country, with Delhi-NCR alone accounting for an estimated 60–70% of counterfeit apparel distribution.
The economic consequences of this illicit trade are extensive. Counterfeit apparel diverts consumer spending from the formal to the informal economy, leading to substantial losses in tax revenue. Evasion of GST, customs duties, and corporate taxes undermines national revenue that would otherwise support critical sectors like infrastructure, education, and healthcare. This erosion of fiscal resources affects long-term public planning and development.
At the industry level, legitimate apparel businesses face serious disruption. Brands lose market share, suffer reputational damage, and are forced to divert resources from innovation to enforcement. Many formal-sector businesses are compelled to scale back operations, delay investment, or reduce employment, particularly damaging in a sector that is labour-intensive and central to India’s industrial output. Meanwhile, counterfeit supply chains often operate through unregulated, exploitative labour practices, exacerbating informal employment and contributing to social inequality.
In essence, apparel counterfeiting is not a victimless crime; it weakens national economic foundations, distorts competitive markets, undermines consumer trust, and jeopardises millions of livelihoods. Addressing it requires an integrated response across enforcement, policy, industry collaboration, and public awareness.
What are the key ways counterfeit apparel damages brand value and consumer trust?
Counterfeit apparel directly undermines brand credibility. Fake products imitate established labels but rarely meet quality standards, leading consumers to question the authenticity of all products under that brand. This erodes brand equity built over years of investment in design, marketing, and customer experience.
The ASPA-CRISIL 2022 Report emphasised that reputational damage goes beyond immediate revenue loss, weakening brand differentiation and diminishing long-term loyalty. For newer or niche brands, this uncertainty can be particularly damaging, discouraging premium pricing and stifling trust-building efforts. Counterfeiting also deters innovation, as creative returns are siphoned off by imitators, forcing companies to divert resources from product development to enforcement.
According to the ASPA-CRISIL data, counterfeiting in apparel shows one of the highest levels of market penetration, estimated between 30–40%. It also notes that consumers aged 20–30 are especially susceptible, often knowingly purchasing counterfeit items due to affordability and the pressure to stay on trend. In such an environment, even genuine products are viewed with suspicion, prompting brands to overhaul their distribution, strengthen authentication systems, and intensify consumer outreach to re-establish trust.
What risks does counterfeit apparel pose to consumers in terms of safety and satisfaction, and how aware are consumers of these risks?
Counterfeit apparel poses significant risks to consumer health, satisfaction, and overall trust in the marketplace. These products are typically manufactured using substandard materials and without compliance with established safety norms. As a result, consumers may be exposed to harmful dyes, low-grade synthetic fabrics, and unsafe production methods that can lead to skin irritation, allergic reactions, or long-term health issues, particularly among children or individuals with sensitive skin.
Beyond physical safety, counterfeit apparel often lacks the durability, functionality, and customer support features that genuine products provide. These items frequently omit quality certifications, UV protection, and warranties. In many cases, there is no recourse for return, refund, or complaint resolution, leaving consumers financially and emotionally dissatisfied. The social and psychological impact is also noteworthy; wearing visibly fake or poor-quality clothing can lead to embarrassment, a loss of confidence, and diminished brand trust.
Despite these tangible risks, consumer awareness remains worryingly low, especially in digital marketplaces. Many buyers, lured by steep discounts or limited-time deals, are unaware that they may be purchasing counterfeit goods. The ASPA-CRISIL 2022 Report highlighted that e-commerce platforms now account for up to 25% of counterfeit apparel sales in India, a number driven by limited product verification mechanisms and inconsistent oversight of third-party sellers.
This lack of awareness is compounded by aspirational buying behaviour. In categories such as luxury, sportswear, or wedding apparel, consumers often knowingly purchase counterfeits to access premium aesthetics at lower prices, without fully understanding the consequences. These choices inadvertently support illegal supply chains, undermine legitimate businesses, and compromise ethical production standards.
Addressing the challenge requires a dual approach: improving technological safeguards and dramatically expanding public education. Awareness campaigns must equip consumers with the tools to identify authentic products, understand the broader risks of counterfeiting, and shop responsibly, particularly online, where the lines between genuine and fake are increasingly blurred. Only through informed purchasing and strengthened consumer vigilance can the risks associated with counterfeit apparel be effectively mitigated.
Can you share an example where authentication solutions have successfully reduced counterfeiting for an apparel brand?
A leading apparel brand implemented a product-level security system where each item carried a unique identifier linked to a secure database. Consumers could verify authenticity via mobile scans, while internal teams used the same system to monitor inventory and sales. According to the ASPA-CRISIL Report 2022, this led to a marked decrease in counterfeit-related complaints, as well as insights into vulnerable distribution channels.
This approach improved both product integrity and customer confidence. Key to its success was an ecosystem-wide effort; retail staff were trained to explain verification steps, and marketing campaigns promoted the benefits of authentic purchases. The integration of authentication across logistics and consumer touch points strengthened the brand’s market presence and simplified enforcement. The case underscores the power of proactive, technology-led strategies in high-risk markets.
What role does ASPA play in promoting authentication technologies and fostering collaboration among brands, regulators, and consumers?
ASPA plays a pivotal role in driving structured, technology-led responses to counterfeiting across industries. It works to align manufacturers, regulators, policymakers, and retailers around a shared commitment to transparency, consumer safety, and brand integrity. A key milestone in this effort was the launch of the ASPA-CRISIL Report 2022, a landmark study that provided a data-driven analysis of counterfeiting’s economic impact across sectors like pharma, automobiles, and apparel, helping industry and policymakers understand the urgency of the issue.
As part of its ongoing initiatives, ASPA organised The Authentication Forum (TAF) 2025, a flagship event that brought together leaders from government, industry, and law enforcement to discuss innovations in authentication and regulatory alignment. This was followed by an open house in Dubai, which engaged global stakeholders to address cross-border challenges in brand protection. ASPA also leads public awareness through targeted education campaigns, digital outreach, and workshops. It partners with institutions and engages actively with media to keep counterfeiting in public focus. Through research, events, advocacy, and consumer education, ASPA continues to promote authentication standards and stakeholder alignment, safeguarding brand value, consumer rights, and national economic interests.
Which authentication technologies and regulatory changes are most effective today, and what future strategies show promise in combating apparel counterfeiting?
Counterfeiting in the apparel sector has become increasingly complex, requiring a multi-layered response that combines cutting-edge technology with targeted regulatory reforms. Today, the most effective authentication systems integrate both physical and digital security measures. Tamper-proof holographic labels, embedded with overt and covert markers, provide a visible deterrent and are difficult to replicate. When combined with QR codes or serialised tags linked to a central database, consumers can instantly verify product authenticity using their smartphones.
On the backend, technologies like blockchain are gaining traction for their ability to create immutable records of a product’s movement through the supply chain. When implemented correctly, these tools not only deter counterfeiting but also generate valuable real-time data to detect distribution anomalies and support enforcement efforts. Adherence to global standards such as ISO 22383 is crucial to ensure these technologies remain scalable, interoperable, and consistent across markets.
From a regulatory standpoint, India has a solid legal framework, including the Trademarks Act and the Customs Act. However, the current challenge lies in enforcement and the rapid evolution of digital and cross-border counterfeiting. There is an urgent need for enhanced traceability measures, such as mandatory secure tagging and origin identifiers for apparel. Additionally, coordination between enforcement agencies, customs, law enforcement, and the judiciary must be institutionalised to ensure swift, uniform action. Fast-track judicial mechanisms can also significantly reduce the burden on legitimate businesses.
Looking ahead, the most promising strategies will rely on fully integrated systems that span the product lifecycle, from manufacturing to post-sale verification. Emerging technologies such as AI-based anomaly detection, digital twins for supply chain mapping, and advanced data analytics will play a central role in pre-empting and intercepting counterfeits. Regulatory policies must also evolve to hold digital marketplaces accountable, particularly by enforcing seller verification and removing counterfeit listings proactively. Together, these advances will set new standards for brand protection, consumer safety, and economic resilience in the apparel industry.
