Swiss Luxury Watchmaker | 35% Fewer Counterfeit Cases Within 12 Months
Executive Summary
Counterfeit “super fakes” cost Swiss watch brands billions each year, eroding trust in both primary and secondary markets. By implementing a nearly invisible micro-laser marking—cryptographically linked to a digital certificate of authenticity—the manufacturer reduced fake warranty returns by one-third, increased certified pre-owned (CPO) sales by 20%, and achieved full ROI within just nine months.
The initiative also lays the technological foundation for future compliance with the EU Digital Product Passport (DPP) regulation.
Context / Persona
- Industry: High-end watches & jewelry
- Role: Head of Brand Protection (budget and program owner for anti-counterfeiting)
- Objective: Fewer counterfeit cases, increased resale value, and DPP readiness
Challenge
The market is flooded with counterfeits—3% of all warranty returns contain fake items. Manual serial number checks take more than 2 minutes per unit—too slow for customer service and customs inspections. Studies estimate that counterfeit losses in the Swiss watch and jewelry industry total around CHF 2 billion annually.
Solution Approach
Invisible to the eye, non-destructive, no ink or labels required.
Service app or customs scanner reads the code and verifies it against an immutable product history.
Unique IDs are automatically linked to ERP/MES systems and the digital product passport backend.
The system is low-maintenance thanks to laser technology instead of consumables.
Implementation Roadmap
| Phase | Duration | Key Stakeholders | Effort / Investment |
|---|---|---|---|
| Concept & ROI Business Case | 4 weeks | Brand Protection, Finance | 1 FTE |
| Pilot Line (250,000 units/year) | 3 months | Production, IT, Integrator | CHF 350,000 CAPEX |
| Global Rollout | +6 months | Supply Chain, Service Network | 2 Technician Teams |
Inline vision systems verify each code in real time; a global change management program trains over 600 service employees via guided tutorials and digital modules.
Key Metrics
Fake Warranty Returns
Service Verification Time
CPO Sales Share
(Key Performance Indicator, delta, baseline, result)