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SMARTPHONE BASED INTELLIGENT PACKAGING: ANTI-COUNTERFEITING

AND CUSTOMER ENGAGEMENT

by Apiwat Thongprasert

Senior Business Development Manager, Silicon Craft Technology Co.,Ltd.

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Active & Intelligent Packaging Industry Association (AIPIA)

NFC Forum member Implementer

By Apiwat Thongprasert, Sr. Business Development Manager.

Abstract • Connecting both product authentication and smart advertisement, the two distinct functions,

together shall enhance a brand, one by assisting sales, the other by protecting the genuine product through smartphone based intelligence packaging scheme.

• Counterfeiting is a rapidly growing worldwide problem in accordance with a rapid growth of world trade and e-commerce. Among several promising technologies, RFID tag plays an increasingly important role as a security countermeasure for counterfeiting, theft and tampering of product packaging. Currently several models of smartphones provide the embedded NFC function that around communication with tag easily.

• In addition to providing a way to protect consumers from buying fake goods, retailers and brand owners may also encourage consumers to purchase their authentic products by providing special treatment, promotions, and vouchers through their product packaging. Retailers and brand owners may offer their consumers an “interactive experience” by smart advertisement. Campaigns that provide an incentive for participation, especially, are a great way to engage a consumer while minimizing the chance that he or she will consider your promotion annoying and invasive.

• Therefore, apart from appearance and design, the future packaging that provides customers more information, more protection, and more interaction are rapidly gained interest.

"Smartphone-based Intelligent Packaging" 2

Reference; Europol, “Counterfeit Products,” https://www.europol.europa.eu/sites/default/files/publications/ counterfeitproducts.pdf; European Commission. (2013). “Too Good to Be True: The Real Price of Fake Products,” 4.19.2013, http://ec.europa.eu/growth/tools- databases/newsroom/cf/itemdetail.cfm?item_id=6589.

Counterfeit products

461 billion USD

2.5% of world trade

“Trade in Counterfeit and Pirated Goods: Mapping the Economic Impact—the OECD now estimates that global trade- related counterfeiting accounts for 2.5% of world trade, or 461 billion USD”.

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Solutions Based on

Printing tech Pro Con

holographic approach • Enable visible inspection • not so easy to verify (as final users are not aware of the details that need to be checked)

Bar codes • Easy solution • Bar codes were originally created for product tracking only, not anti-counterfeiting.

Complex image printing coupled with advanced ink Solutions e.g.

color shifting Ink, UV.

• Widely used for the fight against currency counterfeiting

• Costly solution

Solutions

Based on electrical and electronic devices

Pro Con

RFID Tag • Check that the information contained on the chip is the same as that stored in a centralized database.

• Easy to install and well known by customers

• Primary use of this solution is to track products across the logistics chain

• the price is definitively less competitive due to the addition of new security features.

Trusted Platform Module (TPM) • The solution includes a secure cryptoprocessor embedded directly into the high-tech goods.

• Chip is able to contain secrets, digital certificates, encrypted keys and even passwords.

• most expensive and the most binding one

6Anticounterfeiting: Rating per Technologies

Reference: Frost & Sullivan, How to Win Your Anti-Counterfeiting War, 2010

 The solution must be COST-EFFECTIVE compared to the threat.

 The solution must be EASY TO DEPLOY WORLDWIDE.

 The solution must be RELIABLE AND CERTIFIED (standard compliance).

 The solution can be verified as genuine EVERYWHERE, by EVERYBODY and at ANY TIME without any complex process.

 The solution can provide other benefits e.g. CUSTOMER EXPERIENCE, CUSTOMER ENGAGEMENT, PERSONALIZED MARKETING.

Reference: Frost & Sullivan, How to Win Your Anti-Counterfeiting War, 2010

A guideline to select an anti-counterfeiting solution. 7

SMART PACKAGING MARKET SIZE

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Reference: https://www.grandviewresearch.com/press-release/global-smart-packaging-market

26.7 Billion USD by 2024

10.6% CAGR from 2016 to 2024.

>12% CAGR from 2016 to 2024. the fastest growing segment within intelligent packaging

SIGNIFICANT SECTORS • Personal care sector • Automotive segment

PAGE 9NFC Happening Now…

Worldwide NFC enabled smartphone shipments in million and penetration in %.

Reference: www.ihs.comt

Payment / Mass transit

Bluetooth Pairing

Appliance Data Transfer

Advertisement

Printer Data Transfer

Key Features

 Wireless Power Transfer

 Enabling Disposable

 Contactless operation ( < 5 cm)

Key Applications

 Financial : Payment, Mass transit

 Gadget : Pairing, Data Transfer

 ETC : Toy , Game , Health Care,

Advertisement, Personalization

Near Field Communication Technology and Market:

Access control

Presenter Presentation Notes Magnetic coupling

“NFC can play an important role in linking between digital information and physical item along the life cycle”.

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Reference: Jana Barrett, MARKETERS DRIVING THE CUSTOMER EXPERIENCE, 27 March 2017, retrieved from https://venitism.wordpress.com/2017/03/27/marketers-driving-the-customer-experience/

https://venitism.wordpress.com/2017/03/27/marketers-driving-the-customer-experience/

NFC Solution for Anti-Counterfeiting

Anti-counterfeiting Concept

Proof-of-delivery Concept

Customer engagement

Batteryless

HOW IT WORKS

Customers tap the phone to get information or check

genuine product

Packaging Opened

After customers tear product and tap again, it will detect that product

had opened.

Resistive Tamper Wire

Antenna “Harvest energy from Smartphone & communication”

NFC Microchip

NFC Solution for Smart Packaging

Customers tap phone to verify if product is genuine. Can detect if the package seal is opened.

Opened

Cosmetic PackagingWine Closure

CUSTOMER ENGAGEMENT “Customer Experience Life Cycle”

CUSTOMER ENGAGEMENT “Customer Experience Life Cycle”

http://www.wineindustrynetwork.com/supplie rs/amcor-flexibles.html

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Reference: https://www.youtube.com/watch?v=yAsgXIfL16U

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Reference: http://www.rfidtagfactory.com

Advanced smart packaging

NFC TAG with Temperature Indicating Material. How it works.

PAGE24

NFC Microchip

“Temperature Indicating Tape”: a irreversible indicator that changes color due to a rise in temperature at the specified point.

“Providing passive-operated (Batteryless) Temperature Tracking Solution with Visual and Digital data”.

“Color and Resistance will change once temperature over a specific range, e.g. 10 or 50 degree C.”

Applications: - Cold-chain tracking - Pharmaceutical

www.sic.co.th

Apiwat@sic.co.th

Thank You

PAGE 25

http://www.sic.co.th/ mailto:Apiwat@sic.co.th

Slide Number 1 "Smartphone-based Intelligent Packaging" Slide Number 3 Solutions Solutions Anticounterfeiting: Rating per Technologies Slide Number 7 Slide Number 8 NFC Happening Now… Near Field Communication Technology and Market: Slide Number 11 Slide Number 12 Slide Number 13 Slide Number 14 Slide Number 15 Slide Number 16 Slide Number 17 Slide Number 18 Slide Number 19 Slide Number 20 Slide Number 21 Slide Number 22 Slide Number 23 Slide Number 24 Thank You