RED POINTS raises $38M. Read more
Founder Adrienne McNicholas explains why Food Huggers decided to automate their brand protection.
Food Huggers discovered counterfeits of their products during their Kickstarter campaign before they had even entered product development. The problem initially seemed contained to Chinese site Alibaba, but as their popularity grew, counterfeit Food Huggers suddenly appeared in great quantities on e-commerce sites popular in the US, like Amazon.
Food Huggers looked into legal action, sending a very expensive C&D letter, but realised that claiming damages from hundreds of individuals was unrealistic with such high legal costs. They turned to Red Points’ scalable, digital solution, which automates counterfeit detection and removal, clearly displaying results to clients through a web-based dashboard.
In two months Red Points found 2,297 infringements, removing 2,166 for an impressive success rate of 94%. Counterfeits were most prevalent on Aliexpress, Wish and Alibaba, with a $3.50 price average where genuines retail at $10.95. Adrienne says days’ worth of work removing counterfeits now take her just a couple of minutes with Red Points.
During their Kickstarter, Food Huggers’ founders Adrienne and Michelle discovered online counterfeits using their pictures, video, and logo. Where counterfeiters had saved on development they could invest in sponsored listings, so fakes began to outrank genuine products in search listings. Business development was being undermined, and official resellers were complaining that exclusive selling rights had been violated. Worse, low-quality and in many cases dangerous counterfeits were hurting the Food Huggers brand.
“We realised we could either spend our days and nights fighting the copies, or we could spend our days and nights trying to sell our product.”
Food Huggers liked the Red Points Solution because it is both smart and scalable. Guided by expert human analysts, the Red Points AI technology crawls targeted parts of the web and automates removal. Clients can customise parameters to have as much control over the process as they want. Whole sites can be shut down and legal assistance provided, ensuring of a long lasting solution.
Where before logging hundreds of individual listings would take days, the tech solution means that infringements can be batch-removed from the web according to a client’s specific needs. Food Huggers kept control of and monitored infringements and removals in real-time through the Red Points’ visual dashboard. A short orientation call guides clients through setting up and exploring the dashboard, which is straightforward and easy to use, offering transparent communication and 24-hour support.
“The Red Points Solution is both transparent and incredibly efficient.”