|
Product fakery isn't limited to brand name goods. Its impact on an AON
client that makes a little-known but critical consumer appliance control
shows how counterfeiting can harm a solid business and how a creative
risk management partner can help.
STRIX Ltd, the largest employer on Britain's Isle of Man, manufactures
the controls inside the electric kettles that boil water for tea
in homes and offices from Beppu to Birmingham. Holding some
70 per cent of the market, STRIX dominates its universe, a testament
to the company's craft and care, according to Gordon Barker,
engineering manager of STRIX. "Our product is small but far
from simple. It has 1500 dimensions that are critical for
safety. You might not expect this complexity in a teakettle. But
when you mix plastic, water and electricity and produce 2-3 kilowatts of
high powered heating you need precision control or you have an
interesting bomb in your kitchen."
STRIX goes to great lengths to make a safety-assured product,
subscribing to international testing standards for electrical
appliances. This kind of care costs time and money, but to
STRIX, customer protection is worth it.
Over the past two years, however, STRIX has faced a flood of
fakes that look - but don't operate - like products with
STRIX controls. Without controls, these products can cause - and
reportedly have caused - devastating fires. So many fakes have
poured into STRIX' markets that the company's 30 per cent a
year growth rate has slowed to a snail's pace.
So STRIX, supported by AON Risk Services, has decided to fight
back. The companies have created their own flood - a flood of
information about fake kettles that they are sending to governments
and consumer and retail organisations worldwide.
ARS felt it necessary to go the extra mile for this
client. "We are obviously concerned that STRIX show a
strong risk control profile," says Mike Henthorn, managing
director of AON Risk Services on the Isle of Man, "but it
was more than that. We didn't want to see a good company's
reputation get hurt."
|