Leading PC Maker in China Secures Computers & Peripheral Products Against Counterfeiting
Impact of Counterfeiting
“As distributors hunt for fakes, an ‘epidemic’ of bogus chips, routers, and computers cost the electronics industry up to $100 billion annually” 1
Market surveys by leading industry anti-counterfeit consortia have indicated that “as many as one in ten IT products sold may actually be counterfeit” 2
1-”Fighting a Flood of Counterfeit Tech Products”, Business Week, March 1, 2010
2- “AGMA Urges Manufacturers to Take Steps to Protect Products from Counterfeiters”, Business Week, October 3, 2007.
Lenovo (Beijing, China) group was established in 1984 when China started its economic reform. Today, Lenovo has become the #1 personal computer company in China and represents >10% share of the global PC market. The company rapidly expanded with it’s acquisition of IBM’s PC business and has become one of the fastest growing suppliers of PCs in the world. By the end of 2009, annual sales reached $16.6 billion. As a result, Lenovo’s brand soon came under attack from counterfeit operations especially in their Software and Peripherals (S&P) Department which includes a broad range of products such as hard drives, USB flash drives, mouse/keyboards, printer materials, and PC bags. The company’s S&P Department had implemented several different anticounterfeiting solutions to discourage fakes in the market. Unfortunately, those security systems were quickly compromised and the Lenovo brand name began to lose credibility in the market.
Lenovo then turned to the DuPont Anti-Counterfeit Solutions team for their recommendations of a comprehensive brand protection program including state of the art Izon® authentication. They needed a solution to discourage counterfeit goods, protect their customers from low quality and potentially dangerous electronic equipment, and regain customer confidence in their products.
Download full Case Study: "Lenovo Computers and Peripherals Brand Protection"