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Field notes on fakes, diversion and identity.

Plain-language definitions, numbers and answers for supply chain, brand protection and channel teams.

Blog

Unit-level identity: one label fingerprint for five supply chain leaks

What unit-level identity is, how label fingerprinting works, and what the same scan does for counterfeits, diversion, returns fraud, warranty abuse and recalls. By Yash Mahendra.

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Glossary

The terms, defined.

Short definitions you can quote. More terms added each week.

Channel diversion
Selling products through a channel, region or customer the brand did not authorize, usually below the intended price.
Gray market
Trade in genuine goods outside the brand’s authorized distribution.
MAP (minimum advertised price)
The lowest price at which a brand allows resellers to advertise a product.
Physical unclonable function (PUF)
A physical feature with randomness that cannot be reproduced, used as a fingerprint.
Physical-digital binding
A reliable link between one physical item and its record in a digital system.
Serialization
Giving each unit a unique printed number or code. It identifies a record but does not prove the item is genuine.
Super stockist
In Indian distribution, a large intermediary that supplies distributors across a region.
Edge inference
Running an AI model on a small computer next to the production line instead of in the cloud.
Statistics

The scale of the problem.

What counterfeits, diversion and inventory distortion cost every year.

$1.7TAnnual cost of inventory distortion
$900BAnnual cost of counterfeits and diversion
$500BOf that, counterfeits
$400BOf that, diversion and gray market
Events

Meet us in person.

The packaging and label shows on our calendar across the US, India, Europe, Mexico and Brazil. Want to meet at one? Book 30 minutes with the team.

Book a meeting
Oct 20-212026 · USA
We’re there Oct 20 and 21

PACK EXPO International

McCormick Place, Chicago · show runs Oct 18-21

Oct 29-Nov 12026 · India

LOUPE India

Formerly Labelexpo India · India Expo Centre & Mart, Greater Noida

Jan 30-Feb 32027 · India

PRINTPACK India

India Expo Centre & Mart, Greater Noida

Feb 16-182027 · USA

MAGIC Las Vegas

Las Vegas Convention Center

Jun 8-102027 · Mexico

EXPO PACK Guadalajara

Guadalajara, Jalisco

Jun 22-252027 · Brazil

FISPAL Tecnologia

São Paulo Expo, São Paulo

Jul 22-242027 · India

PackPlus

Bharat Mandapam, New Delhi

Sep 21-232027 · Europe

FACHPACK

Exhibition Centre Nuremberg, Germany

Sep 22-232027 · USA

White & Private Label Expo New York

Javits Center, New York

Sep 27-292027 · USA

PACK EXPO Las Vegas

Las Vegas, Nevada

Oct 5-82027 · Europe

LOUPE Europe

Formerly Labelexpo Europe · Fira Barcelona Gran Via, Spain

Dates TBA2027 · Brazil

Flexo & Labels and Flexo & Pack

Distrito Anhembi, São Paulo · 2026 edition ran in late May

Mar 21-232028 · USA

PACK EXPO East

Philadelphia, Pennsylvania

FAQ

General questions

What is channel diversion?

Channel diversion is when products intended for one market, region or channel are sold in another without the brand's authorization, usually at a lower price. It is also called gray market selling.

What is the difference between a counterfeit and a gray market product?

A counterfeit is a fake made by someone other than the brand. A gray market product is genuine but sold through an unauthorized channel or region.

What is a physical unclonable function (PUF)?

A PUF is a physical feature with randomness that cannot be reproduced, even by its maker. Idanta uses the paper fibers and ink bleed in a printed label as a PUF.

Why can't QR codes alone stop counterfeits?

A QR code is information printed on a pack. Anyone can photograph it and print it again, and the copy scans the same. A code proves that a serial exists, not that the pack holding it is genuine.