Imitation of labels and logos
Brand labels, hang tags and logo printing are easy to copy; counterfeits can be offered for sale with labels very close to the original. A consumer, and even store staff, may not be able to tell the difference by eye.
Authenticity in textile and apparel.
Label imitation, counterfeits on marketplaces and return fraud: the shared problems of apparel brands.
Implementation
Tagvex in textile and apparel.
Every item or case carries a unique number; receipt from the contract manufacturer and deliveries to the warehouse, the dealer and the store are recorded. A product with no entry in the order record being scanned on the market makes off-line or copied goods visible. Repeated or unexpected scans are also flagged.
Textile and apparel is among the areas where counterfeits are seen most. According to the 2025 OECD and EUIPO report, the counterfeit categories most frequently found in customs seizure data are clothing, footwear and accessories such as bags. Because brand value comes from the logo, the label and the design, these elements are easy to copy. A counterfeit usually reaches the consumer through marketplaces and social media, using photographs of the original and a discounted price.
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Data
The scale of counterfeit risk.
9.7%
Share of sales lost by the sector in the EU because of counterfeit clothing, footwear and accessories
Source: EUIPO, The economic cost of IPR infringement in the clothing, footwear and accessories sector, 2015€26.3 billion
Estimated annual revenue lost by legitimate manufacturers in the EU, according to the same study
Source: EUIPO, The economic cost of IPR infringement in the clothing, footwear and accessories sector, 20154.7%
Estimated share of counterfeit and pirated goods in EU imports in 2021
Source: OECD and EUIPO, Mapping Global Trade in Fakes 2025, 2025Risks
Risks in textile and apparel.
Overproduction and off-line goods
In contract manufacturing, units produced above the order quantity or rejected by quality control can reach the market through unrecorded routes. Because these carry genuine fabric and labels, they are the hardest group to tell apart.
Marketplaces and social media
In listings opened with original campaign images, counterfeits are sold at a discount. Removed listings can reappear from different accounts within a short time.
Channel diversion and parallel sales
Products allocated to outlets, to a particular country or to a wholesale channel can go on sale in other markets and at unauthorised points. This damages pricing policy and dealer relationships.
Example scenario
A product’s journey from production to verification.
Labelling in contract manufacturing
Labels and hang tags carrying the invisible signature are printed on the existing line; Tagvex numbers are assigned to match the order quantity.
Receipt and warehouse
The brand receives cases from the contract manufacturer by scanning them; products are recorded on entry to the warehouse and on dispatch to stores.
Check in store
Store staff scan incoming products with the mobile app and confirm that they are genuine and came from the right shipment.
Verification by the customer
The customer scans the label of the item bought in store or online with their phone and sees that the product is genuine.
Regulation
Regulations relevant to traceability.
Regulation on Textile Fibre Names and the Labelling and Marking of the Fibre Composition of Textile Products
In force since 2015, the regulation requires textile products to be labelled in a durable, easily legible, visible and accessible way that states the fibre composition. Because the label carries the statutory information about the product, protecting its authenticity also becomes important.
Ecodesign for Sustainable Products Regulation (ESPR) and the Digital Product Passport for apparel
Apparel is among the priority product groups for ecodesign requirements and the digital product passport in the ESPR 2025-2030 Working Plan; the delegated regulation for textiles is planned for adoption in the last quarter of 2027. The passport is expected to be able to carry information on product identity, fibre composition, origin and the relevant economic operators, accessible through a data carrier such as a QR code on the product.
This section is for information only; official sources prevail for current obligations.
FAQ
Questions about textile and apparel
Will our label or hang tag design change?
No. The invisible signature is worked into the existing label and hang tag design and printed on your existing line. The look of the label does not change.
How is overproduction in contract manufacturing detected?
Because numbers are assigned to match the order quantity and scanned on receipt, the delivered quantity can be compared against the records. Products with no record, or scanned somewhere unexpected, are flagged separately.
How do customers carry out a verification?
The customer scans the label with the mobile app on their smartphone and sees the result immediately. No special device is needed; store staff, dealers and auditors can do the same.
Other industries
Industries facing similar risks.
Meeting request
The right numbering level for your product is set through a needs analysis.
The first meeting reviews your product, sales channels and the risks you face, and recommends a suitable method.
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