Introduction to Dainese’s Problem
Established in 1972 by Lino Dainese, the Dainese brand has been at the forefront in advancing and promoting safety in dynamic sports through innovation and ergonomics.
Dainese’s commitment to performance and safety would eventually allow them to expand beyond motorcycling alone. What began as a staple for motorcycle enthusiasts steadily grew to embrace cycling, skiing, horse riding, and sailing. Dainese excelled as a trusted brand that could deliver high-quality goods for their customers. However, bad actors began to take notice, and before long, counterfeit items soon found their way into their supply chain. This put the safety and trust of Dainese’s loyal customers at risk and opened the door for brand erosion and lost revenue.
Business challenges – OpSec as the Solution
As the creative force behind the very first technical racing suit, the innovation from Dainese didn’t stop there. The back protector, protective knee slider, composite armor soon followed from their brand. Their innovative product, D-air® is a protection technology platform developed for motorcyclists that deploys airbags when the intelligent system detects a dangerous situation. Such cutting-edge materials cannot be easily recreated, and when faulty replicas are purchased, those buyers’ well-being and safety is put at great risk. Dainese quickly turned to OpSec to provide the solution for their problem.
An initial online brand protection analysis carried out by OpSec quickly highlighted the counterfeit challenges that Dainese was facing. Having no authentication security built into the product, or labelling placed on products, made verification difficult for customers. In addition, instances of parallel trading, potential ‘third shift,’ and undeclared manufacturing were identified. A comprehensive online brand protection program was only possible through an effective instrument that permitted brand protection teams and customers to easily distinguish an original product from a fake product.
Dainese required a solution that would enable visibility of its global supply chain, whilst enabling customers to confidently authenticate and register original products. It was vital for the ethos of the brand that customers could have complete confidence in the quality, performance, and safety of official Dainese apparel and equipment. It was critical that all components of the solution would not only compliment but also enhance existing brand designs and messaging, both in the physical and digital space.
Dainese Authenticity & Traceability Program
Dainese’s solution, developed among the Dainese management and the experts at OpSec, combined three key undertakings that would help to secure, enhance, and protect Dainese products through the complete supply chain, from the manufacturers to consumers:
- Product Authentication & Brand Enhancement – at the heart of the solution would lie OpSec’s OVD (Optically Variable Device) security providing uncompromised optical authentication features. OpSec would produce a range of products including certificates of authenticity, hangtags, packaging labels and sewn-in labels. These solutions make it easy to distinguish an original product from a fake product – protecting and enhancing the Dainese brands.
- Consumer Engagement & Information – by simply scanning a QR code, consumers can directly check the product authenticity, product information, and register the products’ warranty. This is possible through a real-time dialogue between the OpSec® Insight platform – a proprietary product lifecycle management platform – and the Dainese online platform which also collects valuable consumers’ information both for traceability reasons and direct marketing activity.
- Supply Chain Management & Product Traceability – by implementing Unique Identifier (UID) usage and distribution patterns within the Insight platform, Dainese would be able to have visibility of its global supply chain, from manufacturers to dealers and consumers, and the ability to target any ‘third shift’ activity.
Product Authentication & Brand Enhancement
OpSec leveraged decades of success in optical security to create a unique OVD encompassing multiple security features at overt, covert, and forensic levels.
The OVD, along with UIDs and specific product information, was then incorporated into branded trim products, including:
- Certificate of Authenticity
- Pressure-sensitive labels
- ‘Tear ’n Sew’ labels (sewn directly into apparel products and helmets)
Incorporating the UIDs into the Tear ’n Sew labels provides the added benefit of being able to identify the product as genuine for warranty claim management – even after the hangtags have been removed.
Consumer Engagement & Information
One of the key business needs of Dainese was to improve engagement with consumers. This allowed Dainese to gain customer insights, increase brand loyalty and maximize revenue opportunities. Adding the Consumer Insight module to their overall brand protection strategy helped achieve this.
The unique QR code on each hangtag or label encouraged consumers to engage with the brand by utilizing any mobile device to:
- Authenticate genuine product
- Discover product features
- Register product warranty and extend warranty where applicable
This then allows Dainese to:
- Acquire consumer information
- Conduct specific and direct general marketing activity
- Fully trace the product through the supply chain
Attempts to authenticate non-verified UIDs or multiple attempts to authenticate the same UID would create counterfeit alerts, equipping enforcement staff to thoroughly investigate.
Supply Chain Management & Product Traceability
Dainese also employed OpSec® Track and OpSec® Trace to allow full exposure of individual products throughout the supply chain to be seen, thereby minimizing and identifying immediate points of diversion.
Together, OpSec and Dainese linked critical product, manufacturing, supply chain, and order information together. They can then assign this data to a unique Insight ID number. This process enables Dainese to have deep control and visibility over its global sourcing and manufacturing supply chain, which facilitates manufacturing efficiency measurement, waste/scrap reduction, and empowerment for standardized metrics for continuous improvement. Through OpSec’s Insight and Dainese platforms, Dainese’s products are traced from the manufacturers to dealers and consumers, and Dainese can target any ‘third shift’ activity.
Investment Payout for Dainese
The integrated authenticity and traceability program developed by the experts at OpSec offers a turnkey solution to many of the challenges faced by leading sportswear companies. This comprehensive OpSec solution fundamentally helps in the fight against counterfeit products by providing premium, brand enhancing Certificates of Authenticity and hangtags, with optical technology holograms integrated into Dainese products. The solution helps to enhance and protect the brand in the eyes of the dealers and consumers.
The system enables Dainese management, enforcement teams (customs), dealers and end-customers to authenticate individual products to ensure brand protection and identify counterfeit products.
Additionally, it encourages consumers to “buy authentic” and directly engage with the brand via their mobile device, giving Dainese and their consumers more power and assurance. Finally, it allows for products to be traced from the manufacturers to dealers and consumers. The advanced transparency and visibility give Dainese control of the entire manufacturing and supply chain process to identify any illegal products traded anywhere in the world.