ITV

Tag: software

  • ‘India doesn’t have enough developers to meet industry’s demand’: Instappy founder Ambika Sharma

    ‘India doesn’t have enough developers to meet industry’s demand’: Instappy founder Ambika Sharma

    MUMBAI: The explosion of smart mobile phones in India and the penetration of internet has led to a boom in several innovative business proposals that explore the digital platform. With India leading the startup scene, everyday new ideas are turning from just business plans in a ppt file to an actual revenue generating business, backed by an aggressive venture capitalists.

    At the same time, it has pushed several small and medium enterprises to go online, as their customers have already made the shift. It not only means a booming in the digital market, it also means more demand for technology to sustain its rapid growth — right from hardware to software. The Mobile App industry is estimated at $ 143 billion and counting.  As more businesses start thinking mobile in their digital marketing initiatives, traditional agencies too are realising the need to include application development skilsl in their portfolio to sustain clients.

    As per Gartner’s  IT Spending Forecast, by 2017 the demand for enterprise mobile apps will exceed the supply available, especially in India — which comes as an opportunity for cloud-based Mobile app creation platform Instappy.

    “Though India is one of the largest base for developers, globally the number of developers required and the apps in which are in demand has a gap of 1:5 and by 2017 this gap is only going to  grow. A good application requires at least five developers working on it and needs a time period of at least  45 to 60 days  on a an average. Whereas the number of enterprises and small businesses who want an application is far more than that. Had the pool of developers grown at the same rate that the SMEs are shifting to digital, this gap would have been avoided, but the mobile industry has seen a rapid boom and the developers aren’t keeping up,” explained  Instappy, founder and MD Ambika Sharma

    Instappy’s business model is based on this simple ratio, as well as the fact that SMEs prefer a platform that helps them get an app without going through complicated technical discussions with developers.

    Observing the current trend in the market, Sharma shared that the small and medium enterprises jumping the digital bandwagon understand the importance of mobile and how it is going to build on their revenue in the long run.

    While Instappy does get an occasional request of ‘an ola app’, or a ‘zomato app’, for the most part users are fairly well aware of keeping their app identity unique, though certain features may be replicated as reference.

    “The only area that SMEs need to be educated about is building an application is not the end of it, it needs constant maintenance, software updates and improvements. Technology is changing fast and the business owners need to be updated for the most part as well,” she added.

    Non technology savvy business owners and marketers often shy away from getting themselves an application to avoid dealing with the technical specifications because they are overwhelmed by the complexity. Therefore the cloud based platform thrives amongst  Small and Medium Sized enterprises, making it a more democratised playing field for all businesses.

    On an average the platform sees anything between 35 to 40 users building apps every week. Barring the first free trial month, the subscribers start off at Rs 30,000 to be on the platform, and the rates go higher depending on the services a user claims. Apart from this Instappy also entertains clients who ask for a more  customized application for their businesses,  which commands premium rates.  But that is nothing compared to the ongoing rates if a professional team of developers are hired for the job.

    For a basic application that serves a simple purpose, a business enterprise will have to pay a small group of developers anything between Rs 15 to Rs 20 lacs and the price can go up to crores if well known developers are hired and difficult coding is required.

    “We are currently getting requests from across industry, but the ones that stand out are travel, learning and education,  retail and stationery and beauty services business. Interestingly mass manufacturing industry, which is very traditional in its nature has also come on board with us to get an application out,” she shared.

    The sudden rush to get an application has also brought in its own set of challenges for the development market. While most businesses want to go digital to expand their market online and open new ways to interact with the consumer, there are also some who want an app just for the sake of it. Sharma stayed  clear of them.

    “No smart business will create a app just for the sake of it or due to herd mentality. While it’s a trend, the applications have to serve a business purpose for them. It is very difficult to develop an app that covers all the needs of a business, while keeping the functionality in mind, and without going overboard with features. It takes almost 30 days to even figure out what all they want  in it, and most of the time a specialised team has to step in to keep the businesses updated about the latest features they can avail or offer their customers through the app. Half the time businesses lack clarity on exactly what they want from an app.That is where the support team comes in and guides them based on their requirement,” Sharma pointed out, adding that Instappy mostly works with businesses who have their content ready.

    To reach out to fresh new users, Instappy has a very active digital marketing strategy that banks on content marketing as well. “As a B2B portal that targets businesses online, without platform being on digital, our marketing spends are also largely inclined on digital campaigns with an occasional print advertisement,” Sharma said.

    Launched in December 2015 in India, and in the European market in March 2016, the platform is already seeing positive acceptance from both the markets.

    When asked about its yearly targets, Sharma said, “At this point we want to have at least  500 applications pushed out in the next 18 months time. Any business takes time when marketing dynamics are changing. We already making money with a revenue increase on a week – on week basis. Keeping in mind that we constantly  want to invest in the platform from the technology standpoint to ready on demand features for customers, we cant put a date on when we will break even, but it shouldn’t take longer than two years for sure.

  • ‘India doesn’t have enough developers to meet industry’s demand’: Instappy founder Ambika Sharma

    ‘India doesn’t have enough developers to meet industry’s demand’: Instappy founder Ambika Sharma

    MUMBAI: The explosion of smart mobile phones in India and the penetration of internet has led to a boom in several innovative business proposals that explore the digital platform. With India leading the startup scene, everyday new ideas are turning from just business plans in a ppt file to an actual revenue generating business, backed by an aggressive venture capitalists.

    At the same time, it has pushed several small and medium enterprises to go online, as their customers have already made the shift. It not only means a booming in the digital market, it also means more demand for technology to sustain its rapid growth — right from hardware to software. The Mobile App industry is estimated at $ 143 billion and counting.  As more businesses start thinking mobile in their digital marketing initiatives, traditional agencies too are realising the need to include application development skilsl in their portfolio to sustain clients.

    As per Gartner’s  IT Spending Forecast, by 2017 the demand for enterprise mobile apps will exceed the supply available, especially in India — which comes as an opportunity for cloud-based Mobile app creation platform Instappy.

    “Though India is one of the largest base for developers, globally the number of developers required and the apps in which are in demand has a gap of 1:5 and by 2017 this gap is only going to  grow. A good application requires at least five developers working on it and needs a time period of at least  45 to 60 days  on a an average. Whereas the number of enterprises and small businesses who want an application is far more than that. Had the pool of developers grown at the same rate that the SMEs are shifting to digital, this gap would have been avoided, but the mobile industry has seen a rapid boom and the developers aren’t keeping up,” explained  Instappy, founder and MD Ambika Sharma

    Instappy’s business model is based on this simple ratio, as well as the fact that SMEs prefer a platform that helps them get an app without going through complicated technical discussions with developers.

    Observing the current trend in the market, Sharma shared that the small and medium enterprises jumping the digital bandwagon understand the importance of mobile and how it is going to build on their revenue in the long run.

    While Instappy does get an occasional request of ‘an ola app’, or a ‘zomato app’, for the most part users are fairly well aware of keeping their app identity unique, though certain features may be replicated as reference.

    “The only area that SMEs need to be educated about is building an application is not the end of it, it needs constant maintenance, software updates and improvements. Technology is changing fast and the business owners need to be updated for the most part as well,” she added.

    Non technology savvy business owners and marketers often shy away from getting themselves an application to avoid dealing with the technical specifications because they are overwhelmed by the complexity. Therefore the cloud based platform thrives amongst  Small and Medium Sized enterprises, making it a more democratised playing field for all businesses.

    On an average the platform sees anything between 35 to 40 users building apps every week. Barring the first free trial month, the subscribers start off at Rs 30,000 to be on the platform, and the rates go higher depending on the services a user claims. Apart from this Instappy also entertains clients who ask for a more  customized application for their businesses,  which commands premium rates.  But that is nothing compared to the ongoing rates if a professional team of developers are hired for the job.

    For a basic application that serves a simple purpose, a business enterprise will have to pay a small group of developers anything between Rs 15 to Rs 20 lacs and the price can go up to crores if well known developers are hired and difficult coding is required.

    “We are currently getting requests from across industry, but the ones that stand out are travel, learning and education,  retail and stationery and beauty services business. Interestingly mass manufacturing industry, which is very traditional in its nature has also come on board with us to get an application out,” she shared.

    The sudden rush to get an application has also brought in its own set of challenges for the development market. While most businesses want to go digital to expand their market online and open new ways to interact with the consumer, there are also some who want an app just for the sake of it. Sharma stayed  clear of them.

    “No smart business will create a app just for the sake of it or due to herd mentality. While it’s a trend, the applications have to serve a business purpose for them. It is very difficult to develop an app that covers all the needs of a business, while keeping the functionality in mind, and without going overboard with features. It takes almost 30 days to even figure out what all they want  in it, and most of the time a specialised team has to step in to keep the businesses updated about the latest features they can avail or offer their customers through the app. Half the time businesses lack clarity on exactly what they want from an app.That is where the support team comes in and guides them based on their requirement,” Sharma pointed out, adding that Instappy mostly works with businesses who have their content ready.

    To reach out to fresh new users, Instappy has a very active digital marketing strategy that banks on content marketing as well. “As a B2B portal that targets businesses online, without platform being on digital, our marketing spends are also largely inclined on digital campaigns with an occasional print advertisement,” Sharma said.

    Launched in December 2015 in India, and in the European market in March 2016, the platform is already seeing positive acceptance from both the markets.

    When asked about its yearly targets, Sharma said, “At this point we want to have at least  500 applications pushed out in the next 18 months time. Any business takes time when marketing dynamics are changing. We already making money with a revenue increase on a week – on week basis. Keeping in mind that we constantly  want to invest in the platform from the technology standpoint to ready on demand features for customers, we cant put a date on when we will break even, but it shouldn’t take longer than two years for sure.

  • Tyrone Systems: Forging ahead with high performance computing

    Tyrone Systems: Forging ahead with high performance computing

    MUMBAI: Technology can be a boon if used wisely and a bane if misused. In today’s fast paced world one can’t do without it and serving this very purpose is the Singapore based technology solution provider Tyrone Systems.

     

    For over a decade now, Tyrone has been instrumental in helping companies across the globe run highly complex businesses efficiently, securely, and reliably. One of the leading providers of servers, storage, back-up, and high performance computing (HPC) solutions, it targets to provide technology blocks customised to achieve business goals.

     

    The company recently launched Tyrone EDRA, a cloud based HPC-on-demand solution made available to customers on demand and on a pay as you use basis with immediate effect. By moving HPC applications to the cloud, the users seek to do away with risks associated with under-provisioning, under-utilisation of HPC resources while benefiting immensely from built in virtualisation support available in cloud based HPC environments.

     

    Speaking to indiantelevision.com Tyrone Systems co-founder & director Sandeep Lodha says: “We provide storage devices and solutions for TV channels. The news channels use a lot of IT applications; and with cameras on the ground and a number of OB vans, videos have become a important asset which needs to be saved and tracked consistently, since information is stored only in digital format these days. So storage becomes a very important factor.”

     

    Tyrone has an old association with the media and entertainment sector and it has created a niche for itself in the sector in India, Srilanka and Malaysia among others. It has a number of broadcast channels and post production names under its customer base including, Gulmarg TV (Malaysia), Maharaja TV (Srilanka) and TV9 (India).

     

    “70 per cent of the media and entertainment sector have implemented the solutions from Tyrone Systems and we are in talks with a lot more to get on board,” Lodha expounds.

     

    Similarly, in terms of post production Tyrone is well equipped with digital formatting. It helps in analogue to digital and vice versa; colour enhancement is a very important factor in post production as well and the company is doing its best to cater to the needs of the stakeholders.

     

    “We believe India is poised to play a big role in global opportunity for HPC applications and related services,” Lodha exults. “With the launch of Tyrone EDRA on-demand and pay-as-you-use HPC solutions, we believe we are bringing HPC within reach of those academic and commercial users, who hitherto could not afford to invest in this high capex and opex intensive application environment.”

  • 3Pillar Global expands leadership team in India

    3Pillar Global expands leadership team in India

    MUMBAI: 3Pillar Global, a leading developer of innovative software products for clients, has announced the appointment of Suresh Kabra as its VP and GM of India to lead the continued growth of the company’s delivery center.

     

    “We are thrilled to welcome Suresh to our growing team. He has an outstanding track record of entrepreneurship and product development and will serve as an extremely valuable asset to our operations in India,” said 3Pillar CEO David DeWolf. “His proven ability to lead high performance teams, along with driving new initiatives and building long-lasting customer relationships, compliments 3Pillar’s global growth strategy.”

     

    Kabra will be responsible for leading, guiding and mentoring the delivery teams while overseeing the day-to-day operations. Suresh will also be responsible for developing and increasing brand awareness and reputation in the Indian market, leading to increased traction in the market for 3Pillar and influencing the ability to recruit top talent.

     

    “I am excited to join the 3Pillar Global executive team at such an exciting time of growth for both the company and the software product development industry. I am looking forward to leveraging my experience to lead and grow the team in India,” said Kabra.

     

    Prior to joining 3Pillar, Kabra was the founder and CEO of clk2c.com, a start-up in the mobile video delivery space, which was acquired in early 2013. Prior to becoming an entrepreneur, he served as assistant VP of Software Products Group at Aricent, Inc., where he directly managed several product line managers and product engineering teams in Delhi, Bengaluru and Chennai.

     

    Kabra also served as VP, business development (APAC) for Conexant, Inc., where he helped the company to grow business manifolds in the Greater China region. He holds a BE from BITS, Pilani and MS from Concordia University, Montreal, and has done a certificate program in International Management from NUS-Stanford. Kabra is also a MIT Sloan Executive Program in General Management scholar. He also holds a Design Patent for Flexible Display Units, issued by The Patent Office, Govt. of India.

  • Google to team up with Audi for in-car entertainment

    Google to team up with Audi for in-car entertainment

    MUMBAI: Recently the tech giant Apple announced its plan to collaborate with car manufacturers to ‘integrate’ its iOS devices into the cars for giving its consumers a chance to delve in to entertainment even while commuting.

     

    Following the same path, now, according to reports, Google and German auto maker Audi AG too are planning to announce their collaboration to develop in-car entertainment and information systems that are based on Google’s Android software.

     

    In fact, to make the technology significant for the future vehicles, the two also plan to collaborate with other automotive and tech companies, including chip maker Nvidia Corp. The idea behind developing this technology is to give drivers and passengers access to music, navigation, apps and services that are similar to those widely available now on Android-powered smartphones.

     

    Apple, so far, has the support of BMW AG, Daimler AG’s Mercedes-Benz division, General Motors and Honda Motor.

  • Multi channel communications continue to grow in India: Avaya

    Multi channel communications continue to grow in India: Avaya

    MUMBAI: Avaya, a global provider of enterprise communications systems, software and services has announced the latest findings of the Avaya Asia Pacific Customer Experience Index.

     

    The Index revealed continuous preference by Indian consumers for multichannel communications in customer service, with video emerging as a new customer service channel, and mobile (text messages, instant messaging platforms) as well as online (including website chat, video chat, social media) continuing to grow and deliver great customer satisfaction scores.

     

    Customer service remains a key influencer of brand loyalty, with 75 per cent indicating they would avoid buying from a company, and more importantly, actively advise friends and family to do the same if they experienced bad customer service. The potential for business generation from satisfied customers is great, with approximately two in every three consumers from India prepared to pay more money to a company that provides them with excellent customer service (69 per cent) with the majority of those being willing to pay at least 10-20 per cent more. This is a trend that is set to continue, as Gen Y is more inclined towards it than mature consumers. 72 per cent of those surveyed also indicated a preference for multichannel communications – demonstrating that companies now more than ever must have a fully integrated end to end multichannel customer experience strategy.

     

    While in-person communication (71 per cent) and phone conversations (76 per cent) continue to lead in terms of interaction volumes, 2013 saw a continuous increase in preference and adoption of mobile and online channels. An average of 4.6 channels are used by consumers when interacting with organisations.

     

    The Avaya Asia Pacific Customer Experience Index also points to opportunities for the Telco, Media or Utility industry segments to engage customers at various touch points, with highest utilisation averaging 5.4 channels. While the Telco, Media or Utility industry leads in mobile and online adoption, the Health, Government and Education sector is the strongest in face to face as a channel for communication.

     

    Despite being a relatively new channel, with an average of 14 per cent users say they have engaged in a service interaction through video in the last three months, the adoption of video chat is on the rise, especially in the finance, banking and insurance sector. Indonesia (41 per cent) and Thailand (29 per cent) lead in the adoption of video as a customer service channel. The rate of adoption of video is expected to grow across the board in 2014 by around 14 percent according to the survey. The main reasons for choosing video chat were virtual face to face interaction with the customer service representative (33 per cent), ease of use (21 per cent) and cost effectiveness (20 per cent).

     

    Crucially, consumers who have used video chat rate their experience very positively, 46 per cent mention that they are ‘very happy’ with the experience and over three quarters (76 per cent) agree that they would use it again if it were offered.

     

    An average of 68 per cent of customers across India agreed that service received from customer service centers has improved over the last 12 months. This is higher than the APAC average across the seven countries in the study which stands at 60 percent.

     

    Given the very evident desire among customers for multichannel communication, businesses must have the right capabilities to collaborate across platforms and agents to provide seamless, quality service regardless of contact points. As the adoption of service channels like mobile, online and video continues to rise, technology solutions that help manage these channels and provide customers with the seamless and ever-improving experience they demand are critical.

     

    According to Frost & Sullivan 2012 Asia Pacific Contact Center Market Report , the Asia Pacific contact center industry remains as the fastest growing region for contact center services, growing at 8.4 percent. Alongside fast and high growth, this presents businesses with the opportunity to take customer service to the next level – and deliver quality service at every contact.

     

    “The importance of multichannel communication continues to grow, with the Avaya Asia Pacific Customer Experience Index results highlighting the potential and importance of channels including mobile, online and video. 70 per cent of the people indicated a preference for multichannel communications – demonstrating that companies now more than ever must have a fully integrated end to end multichannel customer experience strategy. Video is also clearly starting to represent a significant opportunity for customer service differentiation. The Index makes compelling reading for anyone focused on driving a proactive Customer Experience Management strategy in India,” saysAvaya, India and SAARC contact center sales director Johnson Varkey.

     

    This is the sixth year of the Avaya Asia Pacific Customer Experience Index (formerly ‘Avaya Asia Pacific Contact Center Consumer Index’). In 2013, over 2,400 consumers from across the Asia Pacific region, located in Singapore, Japan, Australia, Indonesia, Thailand, Philippines and India, who were recent users of contact centers, were surveyed from August to September 2013.

  • Grand Theft Auto V tops $800 million first day

    Grand Theft Auto V tops $800 million first day

    MUMBAI: It had been over five years since the last Grand Theft Auto game hit store shelves, and all that pent-up demand did wonders for sales of the franchise’s fifth installment, which went on sale Tuesday.

    Take-Two Interactive Software announced Wednesday that the first day of “Grand Theft Auto V” sales topped $800 million worldwide (excluding Japan and Brazil, where the launch is still expected).

    At about $60 a pop, that translates to more than 13 million units. It is the highest first-day retail sales in the company’s history and the GTA series, which had sold 125 million units before this release.

    The revenue numbers also make GTAV the biggest video game launch ever, exceeding the record set last November by Activision’s Call of Duty: Black Ops II, which hit $500 million in its first 24 hours and a record $1 billion its first 15 days.

    The question is whether GTAV will be able to maintain its momentum over the next two weeks and beat Activision with its consistently record-setting game. Then next up whether Activision’s next massive release, “Call of Duty: Ghosts,” can match $800 million its first day.

    GTAV’s setting this record speaks of three major trends in the video game industry, which has otherwise been struggling with massive sales declines as consumers shift their spending to digital add-ons, and free or cheap apps.

    First, big brands rule. During the past few years, consumers have bought fewer games, but they’re continuing to spend big on established titles.

    Second, digital content makes games more appealing. GTAV has more digital add-ons than ever, and that makes it a better value proposition to the consumer.

    And third, while people have held off on buying new consoles, with the next Microsoft Xbox and Sony PlayStation coming this fall, every year the user base with consoles grows and enables a bigger game launch.

  • Half of internet users in UK unsure if content legal: Ofcom

    Half of internet users in UK unsure if content legal: Ofcom

    MUMBAI: Nearly half of all internet users in the UK are unsure whether the content they are accessing online is legal, UK media watchdog Ofcom‘s research has found.

    However, one in six people online believed they downloaded or accessed content illegally over a three-month period this year.

    The findings come from the first wave of a large-scale consumer study into the extent of online copyright infringement among internet users aged 12 and above.

    This ongoing research will identify trends over time, examining infringement of copyright on music, films, TV programmes, software, books and video games.

    According to the report, 47 per cent of users cannot confidently identify whether the online content they download, stream or share is legal or not, highlighting the importance of increased efforts to educate and inform consumers.

    In June, Ofcom published a draft Code that would require large fixed internet service providers (ISPs) to inform customers of allegations that their internet connection has been used to infringe copyright, and to explain where they can find licensed content on the internet.

    Under the amended Communications Act 2003, Ofcom will report to the Government on efforts made by content owners to invest in awareness campaigns to help educate consumers about the impact of copyright infringement.

    The consumer study also found that:

    • One in six (16 per cent) internet users aged 12+ downloaded or accessed online content illegally during the three month period from May to July 2012;
    • Reported levels of infringement varied considerably by content type: eight per cent of internet users consumed some music illegally in the three months, but just two per cent did so for games and software;
    • The most common reasons cited for accessing content illegally were because it is free (54 per cent), convenient (48 per cent) and quick (44 per cent). Around a quarter (26 per cent) of infringers said it allows them to try before they buy;
    • Infringers said they would be encouraged to stop doing so if cheaper legal services were available (39 per cent), everything they wanted was available from a legal source (32 per cent) or it was more clear what content was legal (26 per cent). One in six said they would stop if they received one notifying letter from their ISP;
    • Those who consumed a mixture of legal and illegal online content in the form of music, films and TV programmes reported spending more on legal content in these categories over the three-month period than those who consumed entirely legal or illegal content.
  • Sexual assault lawsuit filed against MySpace, News Corp

    Sexual assault lawsuit filed against MySpace, News Corp

    MUMBAI: The families of four under-aged girls have filed lawsuits against News Corp. and its MySpace.com social-networking site.

    The families claim that their daughters were sexually assaulted by adults they first met on the site.

     
    The suits, media reports state, have demanded unspecified millions of dollars in damages from MySpace and News Corp for “negligence, recklessness, fraud” and misrepresentation.

     
    MySpace.com has also announced that it would start to offer free parental notification software in a bid to appease critics who worry that the site makes it easy for children to provide too much personal information, making them easy prey for sex offenders.

    Parents will be able to use the software, named “Zephyr,” to find out what name, age and location their children use to represent themselves on MySpace, but it won’t allow parents to read their children’s e-mail or see their profile pages.

    Each of the girls was allegedly lured into meetings with men who had chatted them up on MySpace then plied them with drugs or alcohol and sexually abused them, according to the suits.

    Reports state that one of the men accused in the assaults was serving a 10-year prison sentence and the others were awaiting trials, according to lawyers for the girls.

  • Entertainment, software are the most heavily counterfeited sectors

    Entertainment, software are the most heavily counterfeited sectors

    MUMBAI: Gieschen Consultancy has released the 2006 Mid-Year Counterfeit and Piracy Intelligence Report derived from Bascap’s Daily Counterfeit and Piracy Intelligence Report statistics compiled over the first half of 2006.

    This focusses on intellectual property theft, citing major links to illegal activity, the Internet, and brands.

    Entertainment, software are the most heavily counterfeited sectors. The US, UK, India, Malaysia and China top the list of countries that have the most intellectual property violations. Over the first six months of 2006 a total value of $699.3 million of counterfeit and pirated goods, specifically intellectual property theft, was discovered from 760 incidents in 69 countries. Louis Vuitton, Nike, Microsoft, Gucci and Prada are the brands that are counterfeited the most. Pepsi is the most counterfeited brand in the food category.

    Glen Gieschen says, “This activity has major implications upon job creation and sustainability, consumer health, safety and security, and is driving serious criminal activity into this seemingly innocent crime. The greatest misconception about counterfeiting is that the impact is negligible, however the truth is far different.

    “Consumers who are unaware they are purchasing fake products and those who are actively seeking them have consumed adulterated drugs and died, installed fake products in their vehicles which reduce its life or cause bodily injury when they malfunction. We have documented an endless number of instances where these bogus items result in serious problems, large and small for consumers.

    “Recently, counterfeit airline parts were discovered in Russia which, as a passenger, is a concern. When seizures are made of bootleg music, software, and films, it is becoming a frequent occurrence to discover illegal drugs and weapons. In some cases, phony items are sold by illegal immigrants to support their families and fund causes in their homelands. When you purchase these items, you have no idea of the type of people you are supporting, where these funds are going and for what purpose.”

    The top 5 (of 69) countries enforcing intellectual property violations:

    1. USA, 205 incidents, $51.7 Million seizures & losses

    2 UK, 116 incidents, $31.1 Million

    3. India, 87 incidents, $2.5 Million

    4. Malaysia, 52 incidents, $5.9 Million

    5. China, 43 incidents, $5.3 Million

    The report also analyses the use of the Internet in networking and organising the activity of counterfeiters in addition to providing unregulated and competitive advantages which legitimate businesses are unable to use through trade boards, spam, auctions and cyber outlets.

    The most heavily counterfeited sectors:

    1. Entertainment and Software, 383 incidents, valued at $256 Million

    2. Clothing and Accessories, 149 incidents, $69 Million

    3. Drugs and Medical, 44 incidents. $15.8 Million

    4. Food and Alcohol, 40 incidents, $1.7 Million

    5. Cigarettes and Tobacco Products, 37 incidents, $276 Million
    The reports conclusions are based on data obtained from actual counterfeit and piracy activity.

    – Countries, such as China and Russia, export more counterfeit goods than they seize domestically.
    – The US and UK are more effective at enforcing intellectual property rights than other countries.
    – Five per cent of all intellectual property theft is linked to other serious criminal activity such as drugs, thefts, and weapons offences.
    – Counterfeiters are now cross selling different brands with different types of fake goods and in some cases are dealing illicit items with the counterfeits.
    – 14 per cent of counterfeit investigations now involve the use of the Internet.
    – The Internet is being used by all types of counterfeiters to network and organise their activity.
    – Trademark and copyright goods are counterfeited in nearly equal proportions.

    The Bascap Intelligence Reports show that the Internet has been used as marketing tool in one of every seven reported investigations. A significant percentage of spam and junk email is attributable to internet vendors peddling everything from counterfeit drugs and watches to clothing, jewelry, software and pens. Manufacturers of fakes are using the Internet to market directly to consumers, retailers, and distributors through trade boards, auction sites, spam, and cyber outlets.

    The shift from physical marketing to cyber marketing of fake products is due to a number of factors. The Internet is a vast and growing consumer and business market in all economies. Websites can be set up in minutes, at a minimal cost, with the use of a credit card and require only basic computer skills to design and publish. Moreover, tracing the physical location of a counterfeiter through a website can be extremely difficult.

    Some counterfeiters are able to gain a competitive advantage over legitimate businesspeople by using Internet marketing methods that may be illegal or that most manufacturers or retailers would not wish to use. For example, the use of spam, online auctions, or trade boards may dilute a brand’s value and pose legal, technical, and ethical challenges for many legitimate brand owners.

    The top 5 (of 357) items counterfeited:

    1. Films, 13.3 per cent of items counterfeited
    2. Music, 7.5 per cent
    3. Software (Business and Games), 6.1 per cent
    4. Medicine, 4.3 per cent
    5. Handbags, 2.1 per cent

    In reviewing the top counterfeited items reported in the Bascap Intelligence Reports, it becomes evident that copyrighted (51.3 per cent) and trademarked (48.7 per cent) products are being infringed in nearly equal numbers. The variety of reported items suggests that counterfeiters are diversifying into a larger range of goods and industries, which phenomenon is regularly demonstrated when a wide mix of products is seized in raids on a single site.

    Cross selling of different items and brands is also becoming a standard practice as fake Viagra is sold with cigarettes, CDs with handbags, and perfume with watches. In a small, but growing, trend, knockoffs are being sold with other illegal goods such as illicit drugs, fake identification and counterfeit currency.

    The growth of the popularity as a distribution channel for counterfeit and pirated goods notwithstanding, reports indicate that traditional channels and mobile operations are still a significant problem for brands. A large percentage of retail operations are now set up in homes to minimise detection of mail order, product assembly, copying, warehousing and distribution operations. Mobile operations such as street vendors, flea markets, bazaars, auctions, and boot sales remain strong due to the large numbers of consumers attracted to discounted items and bootleg goods.

    Intelligence also suggests that counterfeiters are experts at building upon existing brand marketing, thus saving themselves the cost of creating and testing consumer segments, setting up distribution channels, and advertising. For these reasons, it is not surprising that the leading brands counterfeited in each classification are well-known global brands. A notable case study is the Fifa World Cup 2006 which serves as an example of how counterfeiters implement this strategy.

    Unlike brands whose images have been developed over dozens of years, the World Cup was promoted by organisers and sponsors in a relatively short period of time. Counterfeiters anticipated key markets, manufactured and warehoused knockoffs well in advance of the consumer demand, and then began attempting to distribute them as soon as the brand image was created by the World Cup organisers.

    The top 5 (of 392) brands counterfeited:

    1. Louis Vuitton, 5.2 per cent of incidents.
    2. Nike, 4.9 per cent
    3. Microsoft, 4.7 per cent
    4 Gucci, 3.8 per cent
    5. Prada, 2.5 per cent

    During this reporting period, 392 brands were imitated. The majority of the 760 investigations focused on a number of brands, of which the top five were compiled in Table 4. Noticeably, Louis Vuitton, Gucci and Prada represent luxury products where supplies are limited and prices reflect the exclusivity of the brand. Counterfeiters are successfully moving large quantities of these products for a number of reasons. This exclusivity includes substantial marketing and retail costs, which translate into high prices that are easily avoided by counterfeiters.

    The counterfeiters are able also to manipulate product quality and thus lower the cost of copying the products. The result is a substantial undercut in price of between 50 – 75 per cent from the suggested retail price. Regardless of these deeply discounted prices, it is common to find hundreds of percentage points in profit margins on these knockoffs, thus making it an attractive market to enter.

    The top brands counterfeited in each category:

    Cigarette and Tobacco Products – Marlboro
    Clothing and Accessories – Louis Vuitton
    Computer Equipment and Supplies – Canon
    Drugs and Medical – Viagra
    Electronic Equipment and Supplies – Underwriters Laboratories
    Entertainment and Software – Microsoft
    Food and Alcohol – Pepsi
    Industrial Goods and Supplies – Toyota
    Jewelry and Watches – Rolex
    Perfume and Cosmetics – Giorgio Armani
    Toys and Sports Equipment – Fifa World Cup 2006
    Non-luxury goods, such as those produced by Nike, fight the challenge of popularity as opposed to exclusivity. Due to the high consumer demand for some brands, counterfeiters are able to sell large quantities at the full retail or modestly discounted prices. Again, quality is controlled by the counterfeiter to reduce costs and increase profit margins. Perhaps the highest-margin knockoff product is software. While hundreds of percentage points in profit appears adequate to counterfeiters and pirates for many phony products, margins in pirated software are in the thousands of percentage points.

    The 392 brands analysed for this report represent a significant portion of the portfolio of consumer products available worldwide and a significant percentage of international trade. Moreover, the production and distribution of these brands provide millions of jobs – many of which are at risk to growing competition from illegal markets distributing fake versions of the original products. In controlling the cost of production and thus the quality of fake products, counterfeiters may put consumer health and safety at risk and undermine the confidence placed in these brands.

    A number of factors affect sectors differently. Sales of fake Clothing and Accessories are influenced by a large variety of selling schemes, such as street peddlers, flea market vendors, bazaars, purse parties, internet auctions and discount outlets. The Entertainment and Software industries are vulnerable to Internet file-sharing technology and simple computer manufacturing techniques available to most consumers.

    The Drugs and Medical, Food and Alcohol, and Cigarettes and Tobacco sectors are subject to regulatory and health restrictions such as mandatory age limits, verification of prescriptions, and expiry of goods. In addition, added taxes levied on these products provide incentives for counterfeiters to enter these markets and infiltrate supply chains.