Jun 01, 2012
Sassda members face product imitation concernsBack
Engineering|Africa|Hendler & Hart CEO Nash Soni|Industrial|Packaging|Sassda|Stainless Steel|Africa|China|South Africa|Aluminium Cookware Manufacturer|Counterfeit Products|Packaging|Product|Products|Stainless Steel|Steel|Bill Scurr|Soni
© Reuse this
Early in 2011, loyal customers of Hendler & Hart alerted the company that counterfeit products of the company’s Aloe stainless steel and Hart aluminium ranges were appearing on the market.
“These products are very similar to our products,” says Soni. “The packaging is exactly the same and this led to confusion among customers.
“It is our understanding that most of these products are being imported from China,” he adds.
Soni states that counterfeit products are damaging to a company’s reputation, as consumers do not get the quality they pay for and expect from what they believe is a trusted brand.
The company stresses that the difference between the counterfeit products and real Hendler & Hart products is that the counterfeit products are of low quality and cheaply manufactured.
In March 2010, Engineering News quoted the German Engineering Federation (VDM) as saying that worldwide product piracy was no longer a marginal phenome- non, but that the threat had been steadily increasing in recent years.
VDM said that this form of business crime cost companies an estimated €660-billion globally in 2010, representing 9% of world trade volumes. In the past, the main focus of imitators was on consumer goods but counterfeiters are increasingly also turning to industrial products, it stated.
Soni says regulations in South Africa do not provide adequate support to ensure that companies’ products are not counterfeited.
Hendler & Hart is currently working with the stainless steel and aluminium federa- tions to try to involve government, which the company says has not been very helpful in protecting businesses from this type of fraud.
Further, Soni says the company is training customs officials as well as border police to recognise the difference between locally manufactured Hendler & Hart products and the imported counterfeit products.
“Importing counterfeit products has significant negative effects for the local economy as it leads to revenue losses, job losses and, in extreme cases, even company closures as South Africa manufactures less of the local, fully South African original product and more cheap imitations are imported into the country,” says Soni.
He adds that businesses and government need to improve tariff protection measures to ensure that counterfeit products are not brought into South Africa.
Southern Africa Stainless Steel Development Association (Sassda) executive director Bill Scurr adds that Hendler & Hart is not the only member of the association that is currently combating counterfeit products.
“This is a growing problem in the industry, which needs to be dealt with so companies can compete on a level playing field.”
Sassda is assisting members of the association’s consumerware, hospitality and catering sector in raising these matters at government level so that local companies can be heard and the counterfeiting of South African products stopped.
Edited by: Chanel de Bruyn© Reuse this Comment Guidelines (150 word limit)
Other Sassda News
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
In the next 20 years, it was expected that, in Africa, more people would live in cities and towns than in rural areas, United Nations Habitat executive director Dr Aisa Kirabo Kacyira said at the Human Settlements Indaba that took place earlier this month in...
Tough-talking Human Settlements Minister Lindiwe Sisulu has committed government to building 1.5-million low-cost houses over the next five years, telling the Human Settlements Indaba in Johannesburg on Wednesday that the State would achieve this target through the...
Over the past 20 years there has been persistent concern about deindustrialisation in South Africa, as well as the fact that locally produced manufactured products have been increasingly displaced by imports.
Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted last week that recommendations were being considered to “detect and...