This presentation aims to introduce current global jewelry market situation, jewelry brand protection strategy and supply chain management.

1. Protect Your Jewelry Brand with Latest
Anti-counterfeiting Technology
How to work against counterfeit problems, brand piracy and
grey market in the jewelry industry
Webinar: 2-Feb-2016
Presented by Alfons Futterer, Managing Director
NanoMatriX International Limited

2. Agenda
1 Jewelry Market Overview
2 Counterfeit Problems and Cases
3 Brand protection strategy
4 Successful cases

3. 1 Jewelry Market Overview

4. Worldwide jewelry market is solid, dynamic
and fast-moving
The jewelry industry seems poised for a
glittering future. Annual global sales of
$151 billion are expected to grow at a
healthy clip of 5 to 6 percent each year,
totaling $ 250 billion by 2020.
Consumer appetite for jewelry, which
was dampened by the global recession,
now appears more voracious than ever.

5. Major Countries in World Jewelry
Consumption
The statistics on the right hand side
released by Statista, present major
countries in global jewelry consumption
in 2012, using the unit of ton.
The global jewelry market is dominated
by only a handful of countries and the
top two biggest leaders are India and
China. The main reasons may come
from the large quantity of people in
these two countries and the increasing
living standard.

6. Increasing Demand for Jewelry
Despite lingering concerns about the
global economy, the diamond industry was
surprisingly resilient in 2011.
Although it appeared the recession would
slow sales of diamond jewelry, overall
demand has continued to grow. This
performance is in line with the broader
luxury category, which defied economic
headwinds to hit an all-time high in sales
in 2011.

7. 2 Counterfeit Problems and Cases

8. The Counterfeit jewelry Market
The problem of counterfeiting today has
reached global range and it is an increasing
phenomenon that affects all of us.
According to a new US government report,
agencies made 23,140 seizures of counterfeit
goods in 2014. If the goods had been genuine,
their retail value (MSRP) combined would have
exceeded $1.2 billion.
Of all the fake consumer goods imported into
the US, the category with the highest value
seized was watches and jewelry, taking the top
spot from handbags and wallets, which led all
knockoffs in 2013.

9. The dangers of counterfeit jewelry
Every year counterfeiting hurts job creation
Fake jewelry products have potentially hazardous health effects
When the jewelry industry as a whole is making less money, it isn't able to hire
as many workers as it did. Every year counterfeiting hurts job creation in
manufacturing, wholesale and retail trade sectors. A very real effect of these
fake jewelry products infiltrating the market.
Today, there are many fake jewelry can be found either in the roadside market
or on E-commerce channels. These fake products are low-quality, easily to
break and cause skin allergy. People buying products may put themselves in
serious danger, but they may not be aware of the harm until problem
occurred.
Consumer Side

10. The dangers of counterfeit jewelry
Damage brand reputation and value
Law suites and compensation
Cause financial loss
Brand owner Side
U.S. Customs and Border Protection (CBP) officers at Miami International
Airport seized 1,200 counterfeit Tiffany bracelets, which, if genuine, would
have a total estimated Manufacturer’s Suggested Retail Price (MSRP) value of
$2,850,000. The jewelry arrived in a shipment from China.
Customers who bought the counterfeit jewelry might suffer from its bad quality
or the damage fake jewelry cause to their health. Then these customers will
lose confidence in your brand in turn because they thought it is products under
your brand . What’s worse, they will never be you loyal customer and always
look down on your brand value.

11. It is urgent to protect your brand!!
We can solve the problems!

12. 3 Brand protection strategy

13. Brand Protection Strategy
Brand Protection MethodsBrand Impact Brand Owner should:

14. Problems to solve
• Counterfeiting
• Swap original with fake
• Track & Trace
• Within the company
• Within the supply chain
• Within the entire value chain

15. Brand Protection Solutions
TrackMatriX® Family
TrackMatriX® GEO TrackMatriX ® [V]-ENGAGETrackMatriX ® Lock
Physical Authentications
Overt Features
Covert Features
Forensic Features

16. Track & Trace
TrackMatriX® GEO
The TrackMatriX® system is a patent pending, self-managed platform for
item-by-item serialization with the objective to increase product security and
strengthen brand recognition.
The system is configured to make it easy for companies to apply non-
sequential, encrypted, unique identification numbers (UID) as QR code
hyperlinks or other 2D barcodes onto products or product packages.

17. TrackMatriX ® GEO
Benefits
• Protect return on investment
against counterfeiting
• Connect and interact with
customers
• Reduce advertisement cost,
increase product awareness
• No app required, all services
are web-based and globally
accessible

18. TrackMatriX ® GEO
---Report

19. System which can ‘hide’ a
covert information in
standard 2D barcodes.
Here to we offer:
• A barcode generator
• Dedicated mobile app
• Back-end IT development
• Securely printed documents
TrackMatriX ® Lock
How it works?What is it?

20. Sample codes & Scan Result
Link to Blog
OVERT: www.nanomatrixsecure.com/blog
COVERT: SERECT INFO! FOR TM LOCK APP
ONLY!
Covert Information
Scan Result
Overt Information

21. TrackMatriX ® [V]-ENGAGE
--- Perfect brand visual
It is based on a technology which has been picked by Alibaba Group to
support secure O2O and improve ecommerce security.
Using TrackMatriX® [v]-Engage codes requires a purpose-built code
generator, which is not accessible to counterfeiters.

22. TrackMatriX ® [V]-ENGAGE
 Not engaging
 No/Low branding value
 Requires delicated space
 Reliability issues
 Expensive customization
 No expected action
 50-400% more scans
 Full Branding, Creative
 Save space
 Reliable
 Flexible customization
 Expected action

23. Physical Security Features
Verified by:
Human senses without any aiding
tools
Verified by:
Tools like detector, microscope,
UV lamp, IR laser, etc.
Verified by:
Laboratory tests
Overt Covert Forensic
UV/IR Fluorescent Features
Security Taggant Security TaggantColor Changing Ink
Holographic Foils

24. How to detect a inorganic optically active security taggant?
That type of taggants are particularly secure as the custom-built detectors are measuring multiple optical characteristics based on multiple characteristics
 taggant type used
 substrate involved (paper, hologram, etc.)
 specified use case (reading conditions: reading distance, detect through glass/paper, discrimination etc.)
Inorganic optically active security taggants differ from common security features, as they are often not detectable by counterfeiters. If they do not know
they are there, counterfeiters will not be able to copy it.
In-field detection: Hand-held
Output signals: Indicator light, voice or vibration.
Barcode Scanning & Detection
Verification of Physical Security Features
Methods to verify certificates without any doubt
In-line detection / QC during printing
Interlock system
Barcode scanner

25. 4 Successful cases

26. Scottsdale Mint is a US based company that manufactures some of the most exceptional bullion products available to
consumers today. It mints and delivers precious metal around the world through its extensive network of authorized distributors and
dealers.

27. What problem did Scottsdale Mint attempt to solve?
Scottsdale Mint has been looking for a way to provide a secure method
to allow their clients to verify the authenticity of each product
purchased. No matter if that produce has been purchased online or
offline.

28. How is the solution implemented? Who will issue
codes? Print codes? Verify codes?
When a product is ordered, Scottsdale provides an image of the product
itself.
When the product is delivered, Scottsdale encourages their customers to
verify on-line. The process for this verification starts with a scan of the
TrackMatriX ® Lock code on the product with a standard, everyday QR code
scanner. The code reveals a URL that takes them to the Scottsdale
verification site (maintained by Scottsdale).
From there the customer downloads our TrackMatriX ® Lock app, the code is
scanned and verified authentic with the photo and a description and
registration number.

29. Summary
• Efficient protection of jewelry requires careful planning: Issue to verification
• There is no single solution for all use-cases or types of jewelry products
• Due to the long lifetime of jewelry the latest technology today may not be
relevant in.
• Why can NanoMatriX help?
• Understand and support three pillars to shape a solid brand protection strategy
• Simple and cost effective method of verifying the jewelry products
• Cutting edge state of the art anti-counterfeit technology
• Provides instant verification or disqualification of jewelry submitted to brand owners and
customers.
Brand protection, anytime, anywhere!

30. Introduction
NanoMatriX® offers full range of anti-counterfeiting,
serialized track & trace technologies and IT solutions.
We provide solutions from unit-level authentication and
verification to serialization and track & trace during all
process in the supply chain.
 Holograms & OVDs
 RFID / NFC
 Inks, Varnishes & related
 Software systems & architecture
 IT integration & consulting services
Company Overview
Product & Services:
 Security features
 Anti-counterfeiting materials
 Security additives
 Printed security feature & watermarks
 Serialization, coding, making systems

31. Thank You!
Please do not hesitate to contact us for any further queries:
NanoMatriX International Limited
Attn.: Mr. Alfons Futterer
Flat A, 9/F., Shun Pont Comm. Bldg.
5-11 Thomson Road, Wanchai
Hong Kong S.A.R.
T.: +852 2523 9959; F.: +852 2523 9959
E.: alfonsf@nanomatrixsecure.com
W.: www.nanomatrixsecure.com
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