Unofficial translation

Procter&Gamble is planning to hit the industry ofcounterfeit products which amounts to $1 billion in Russia alone.  "Quality Without Risk", acertification program for the company's retail outlets, has been launched inUkraine.  By the end of spring thisprogram may begin in Russia.  Majorinternational producers are watching Procter's actions closely and are preparedto support this challenging undertaking...

The share of P&G counterfeit goods in Kharkiv andOdessa, the most problem cities in Ukraine, would sometimes reach 20%.  Consumers of washing powders and shampooswere the most frequent victims of brand pirates.  To protect consumers from counterfeit goods P&G introducedspecial certificates in the retail network. A certificate issued at each point of sale - be it a shop, a kiosk, orstreet stalls - evidences that this retail outlet is authorized by the companyto market its product.  The certificateis intended to serve as a security for the buyer against counterfeit goods.

"All members of our Association are watching whatP&G is doing in Ukraine.  I will notbe surprised if a similar measure is introduced in Russia by other companies aswell", says Peter Necarsulmer, Chairman of the Coalition for IntellectualProperty Rights which unites some major foreign companies selling consumer  goods including Nestle, Pfizer,Procter&Gamble.

Vitaly Prokopenko, a P&G Kiev office PR manager,informed Vedomosti that the retail certification program is expected to coverup to 25 thousand outlets in the republic. By this point in time about 15 thousand companies have already receivedspecial certificates and are therefore selling only authentic P&G products.

A few days ago D’Arcy Kiev office embarked on a promotioncampaign to advertise P&G actions in Ukraine. Nature of certificationprogram is explained to a consumer  in acommercial.  According to Prokopenko, thecost of the promotion campaign is relatively low - only $50 thousand.  Noteworthy too, the media plan makes aprovision to put commercials on major national channels, namely 1+1, ORT-Intertargeting an audience of at least 40 million people.  Prokopenko claims it is essentially all citizens of the republicwho watch TV on a regular basis. 

“We were very successful in implementing this program in twopilot regions - Odessa and Kharkiv.  Inthese two regions it became much more difficult to sell goods without acertificate; salesmen would reasonably prefer avoiding awkward situations whenyou have to explain all the time that you are what you are” - says Prokopenko.

In parallel to certification initiatives Ukraine-basedP&G set up three mobile laboratory units. Goods marketed by certified outlets are machine-tested.  In case any irregularities are detected, thesalesman will lose his/her certificate, but so far no counterfeit goods werespotted at any pilot trading sites. Andrey Bader, PR manager of the Moscow P&G office, reported that theUkrainian experience of combatting counterfeit industry will possibly bereplicated on the Russian market.