As the problem of counterfeit bearings continues to spread, bearing manufacturers and
their representative associations have been forced to take up a battle which
few governments or customs authorities are equipped to handle.
The situation faced by name brand bearing manufacturers and distributors in India
is the most obvious. At times, over 40% of the bearings sold in India under
well-known name brands have been counterfeit. Not only did this
endanger the public, it also severely undermined
consumer confidence. A 2001 study by ORG Marg found
that 85% of Indian customers who stopped
buying SKF bearings did so because of counterfeiting -- being so
pervasive that retail customers lost confidence what they were receiving
was actually an SKF bearing.
In India, SKF deserves credit for its proactive approach. Not only
did the company work to identify counterfeiters, it also assisted official
agencies pursuing them. In addition,
SKF India changed its overall packaging and introduced tamper-proof, holographic
pouches to thwart knockoffs. Over the past 18 months, those efforts, along
with court decisions, raids and more direct participation by other manufacturers,
have produced significant results in stunting the black market.
Now bearing manufacturers across the European Union have announced they are banding
together to fight their own rising tide of counterfeits. Through the Federation of
European Bearing Manufacturers'
Associations (FEBMA), they are applying for border seizures of counterfeit bearings.
FEBMA President, Juergen Geissinger, said, "To rigorously fight the manufacture and
distribution of counterfeit bearings is a matter of priority of the European
bearing industry." Mr. Geissinger went on to say, "The confiscation of counterfeit
bearings in the EU is an important step to protect customers and consumers and
enables bearing manufacturers to take legal measures against all involved
in the manufacture and distribution of counterfeit bearings."
Ironically, one reason for the influx of counterfeit bearings in the EU is
successful anti-counterfeit efforts in other countries. Large quantities of
counterfeits, which might have been destined for smuggling into India, for
example, are now moving into other markets.
Because transactions are in cash, counterfeiters tend to prefer operating in
markets with readily-traded currencies, such as the Euro (that said, however,
eBearing has numerous reports of increased counterfeiting in Iran, Saudi Arabia,
and across the former Soviet republics).
The FEBMA said, "Customs authorities agree that the concerted initiative by
European bearing manufacturers will significantly increase the chances to detect
counterfeits. The European bearing industry is, therefore, confident that its initiative
to intensify the fight against counterfeiting will turn out to be a success."