STORES Magazine - September 2017 - 61

"What we worry
about is our brand
image and negative
impacts on our
customer service
reputation."
- Joe Spallone, MVMT Watches

1,000 counterfeit listings, so we were very
pleased with how effective the Red Points
program is," he says.
"They were not only able to find a
number of websites with counterfeit
listings that we were unaware of, they were
able to tackle fake Facebook pages and
Instagram accounts that were advertising
counterfeits of our watches. It was huge."
INSIDE INFORMATION
The distribution of illegal content
online "is huge and growing," says Laura
Urquizu, CEO of Red Points.
STORES.ORG

"Today, everything can be
counterfeited," she says. "You can
find fake products online everywhere.
And when we see a trendy product,
we know there is going to be a
counterfeiting problem."
When a company has a brand that it
wants to protect from counterfeiting,
it gives Red Points all the information
that Magda needs to detect a counterfeit
with a high degree of probability. That
typically includes the brand's retail
price, websites where it can legitimately
be found, approved distributors, any
words or claims unique to that brand and
countries where the brand will and will
not be sold.
Since Magda is a self-learning
program, Urquizu says, each time a
brand adds another piece of qualifying
information about its items, Magda gets
better at assessing the probability of an
item being counterfeit.
Spallone says getting started with Red
Points was easy. "I gave them an Excel
document documenting the websites we
were aware of selling counterfeits of our
brand. I also gave them images of our
products and information in the form of
keywords about our brand, price points,
where we have distribution - all the
information their software needed to be
able to detect counterfeits."
Red Points uses its algorithms to scan
all the places where counterfeit listings
are posted including large well-known
marketplaces as well as thousands of
lesser known sites, Urquizu says.
As Magda discovered probabilities of
items being counterfeited, Red Points'
analysts posted that information and
images on a cloud-based portal. Signing
in to MVMT's section of the portal,

Spallone could see the items and validate
whether they were indeed counterfeits.
Once validated, Red Points contacts
the websites where the items are listed,
requesting that they be deleted; most of
the time, the contacted websites react
immediately to their requests.
"When I was doing that myself, I'd often
wait weeks for the websites I contacted to
review my requests and react," Spallone
says. "With Red Points, because they have
relationships and contacts with so many
marketplaces, deletions typically happen in
about 24 hours."
Because Red Points "works with so many
verticals, we know where brand abuse is
happening," Urquizu says. "And we have
lots of other detail information such as
where counterfeits are likely to originate."
If the website is a fake website, "we work
to shut it down," she says. "Almost 100
percent of the time we are successful."
BRAND IMAGE
Since Magda is housed in the cloud, a
retailer or other brand manufacturer can
log into their section of the portal and
see all the data it needs to keep track of
counterfeiting issues, such as how many
listings has Red Points discovered or how
many listings have been deleted.
Spallone says he worries less about
losing sales to counterfeiters and more
about the brand image and the time and
money it takes for him to deal with
the problem.
"Someone who buys what they think
is one of our watches for $5 or $10 is
probably not likely to spend $95 or
$100 to buy from us," he says. "What
we worry about is our brand image
and negative impacts on our customer
service reputation. Also, the fact that
this was causing so much more work for
customer service."
MVMT is still a relatively small and
unknown brand, so finding over 25,000
fraudulent listings on 80 websites in a
six-month period is impressive. Urquizu
says Red Points finds more than 100,000
counterfeit listings each year.
Liz Parks is a Union City, N.J.-based writer with
extensive experience reporting on retail, pharmacy
and technology issues.
STORES September 2017 61


http://www.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - September 2017

Editor’s Page
President’s Page
Retail Politics
NRF News
Trends
Retail People
The Favorite 50
RFID Is Ready to Revolutionize the Retail Industry
Playing Their Tune
C2W
Store Operations
Marketing
Payments
How Stonewall Kitchen Boosted Sales and Reengaged Customers
Finance
Store Operations
Inventory Management
Online
How Giant Eagle’s Technology Experiments Reduce Losses From Out-of-Stocks.
Startup Spotlight
Analytics
ORC
Fraud
Stores at 100
POV
Communities
End Cap
STORES Magazine - September 2017 - Intro
STORES Magazine - September 2017 - cover1
STORES Magazine - September 2017 - cover2
STORES Magazine - September 2017 - 3
STORES Magazine - September 2017 - 4
STORES Magazine - September 2017 - 5
STORES Magazine - September 2017 - Editor’s Page
STORES Magazine - September 2017 - 7
STORES Magazine - September 2017 - President’s Page
STORES Magazine - September 2017 - 9
STORES Magazine - September 2017 - Retail Politics
STORES Magazine - September 2017 - NRF News
STORES Magazine - September 2017 - Trends
STORES Magazine - September 2017 - 13
STORES Magazine - September 2017 - 14
STORES Magazine - September 2017 - 15
STORES Magazine - September 2017 - 16
STORES Magazine - September 2017 - Retail People
STORES Magazine - September 2017 - 18
STORES Magazine - September 2017 - The Favorite 50
STORES Magazine - September 2017 - 20
STORES Magazine - September 2017 - 21
STORES Magazine - September 2017 - 22
STORES Magazine - September 2017 - 23
STORES Magazine - September 2017 - 24
STORES Magazine - September 2017 - RFID Is Ready to Revolutionize the Retail Industry
STORES Magazine - September 2017 - 26
STORES Magazine - September 2017 - 27
STORES Magazine - September 2017 - Playing Their Tune
STORES Magazine - September 2017 - 29
STORES Magazine - September 2017 - 30
STORES Magazine - September 2017 - C2W
STORES Magazine - September 2017 - Store Operations
STORES Magazine - September 2017 - 33
STORES Magazine - September 2017 - 34
STORES Magazine - September 2017 - 35
STORES Magazine - September 2017 - Marketing
STORES Magazine - September 2017 - 37
STORES Magazine - September 2017 - Payments
STORES Magazine - September 2017 - 39
STORES Magazine - September 2017 - How Stonewall Kitchen Boosted Sales and Reengaged Customers
STORES Magazine - September 2017 - 41
STORES Magazine - September 2017 - Finance
STORES Magazine - September 2017 - 43
STORES Magazine - September 2017 - Store Operations
STORES Magazine - September 2017 - 45
STORES Magazine - September 2017 - Inventory Management
STORES Magazine - September 2017 - 47
STORES Magazine - September 2017 - Online
STORES Magazine - September 2017 - 49
STORES Magazine - September 2017 - How Giant Eagle’s Technology Experiments Reduce Losses From Out-of-Stocks.
STORES Magazine - September 2017 - 51
STORES Magazine - September 2017 - Startup Spotlight
STORES Magazine - September 2017 - 53
STORES Magazine - September 2017 - Analytics
STORES Magazine - September 2017 - 55
STORES Magazine - September 2017 - 56
STORES Magazine - September 2017 - ORC
STORES Magazine - September 2017 - 58
STORES Magazine - September 2017 - 59
STORES Magazine - September 2017 - Fraud
STORES Magazine - September 2017 - 61
STORES Magazine - September 2017 - Stores at 100
STORES Magazine - September 2017 - 63
STORES Magazine - September 2017 - POV
STORES Magazine - September 2017 - Communities
STORES Magazine - September 2017 - End Cap
STORES Magazine - September 2017 - cover3
STORES Magazine - September 2017 - cover4
https://www.nxtbook.com/naylor/NRFK/NRFK0318
https://www.nxtbook.com/naylor/NRFK/NRFK0218
https://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20180116
https://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20180115
https://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20180114
https://www.nxtbook.com/nxtbooks/nrf/STORES2018_preview
https://www.nxtbook.com/naylor/NRFK/NRFK0118
https://www.nxtbook.com/naylor/NRFK/NRFK0917
https://www.nxtbook.com/naylor/NRFK/NRFK0817
https://www.nxtbook.com/naylor/NRFA/NRFA0017
https://www.nxtbook.com/naylor/NRFA/NRFA0317
https://www.nxtbook.com/naylor/NRFK/NRFK0717
https://www.nxtbook.com/naylor/NRFK/NRFK0617
https://www.nxtbook.com/naylor/NRFK/NRFK0517
https://www.nxtbook.com/naylor/NRFK/NRFK0417
https://www.nxtbook.com/naylor/NRFK/NRFK0317
https://www.nxtbook.com/naylor/NRFK/NRFK0217
https://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20170117
https://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20170116
https://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20170115
https://www.nxtbook.com/naylor/NRFK/NRFE0017
https://www.nxtbook.com/naylor/NRFK/STORES2017_Preview
https://www.nxtbook.com/nxtbooks/nrf/STORES0117
https://www.nxtbook.com/nxtbooks/nrf/STORES1216
https://www.nxtbook.com/nxtbooks/nrf/STORES1116
https://www.nxtbook.com/nxtbooks/nrf/STORES1116v2
https://www.nxtbook.com/nxtbooks/nrf/STORES1016_esri
https://www.nxtbook.com/nxtbooks/nrf/STORES1016_radial
https://www.nxtbook.com/nxtbooks/nrf/STORES1016
https://www.nxtbook.com/nxtbooks/nrf/STORES0916_customcontent
https://www.nxtbook.com/nxtbooks/nrf/STORES0916
https://www.nxtbook.com/nxtbooks/nrf/STORES0816
https://www.nxtbook.com/nxtbooks/nrf/STORES0716_jestacustomcontent
https://www.nxtbook.com/nxtbooks/nrf/STORES0716
https://www.nxtbook.com/nxtbooks/nrf/STORES0616
https://www.nxtbook.com/nxtbooks/nrf/STORES_sourcebook2016
https://www.nxtbook.com/nxtbooks/nrf/STORES0516
https://www.nxtbook.com/naylor/NRFK/NRFE0416
https://www.nxtbook.com/nxtbooks/nrf/STORES0416
https://www.nxtbook.com/nxtbooks/nrf/STORES0316_visualsearch
https://www.nxtbook.com/nxtbooks/nrf/STORES0316
https://www.nxtbook.com/nxtbooks/nrf/STORES0216
https://www.nxtbook.com/nxtbooks/nrf/STORES2016_20160119
https://www.nxtbook.com/nxtbooks/nrf/STORES2016_20160118
https://www.nxtbook.com/nxtbooks/nrf/STORES2016_20160117
https://www.nxtbook.com/naylor/NRFK/NRFE0016
https://www.nxtbook.com/nxtbooks/nrf/STORES2016_Preview
https://www.nxtbook.com/nxtbooks/nrf/STORES0116
https://www.nxtbook.com/naylor/NRFK/NRFC1215
https://www.nxtbook.com/nxtbooks/nrf/STORES1215
https://www.nxtbook.com/nxtbooks/nrf/STORES1115_buyersguide
https://www.nxtbook.com/nxtbooks/nrf/STORES1115
https://www.nxtbook.com/naylor/NRFK/NRFE1015
https://www.nxtbook.com/naylor/NRFK/NRFC1015
https://www.nxtbook.com/naylor/NRFK/NRFE0915
https://www.nxtbook.com/naylor/NRFK/NRFM0016
https://www.nxtbook.com/naylor/NRFK/NRFE0815
https://www.nxtbook.com/naylor/NRFK/NRFE0715
https://www.nxtbook.com/naylor/NRFK/NRFE0615
https://www.nxtbook.com/naylor/NRFK/NRFD0015
https://www.nxtbook.com/naylor/NRFK/NRFS0015
https://www.nxtbook.com/naylor/NRFK/NRFE0515
https://www.nxtbook.com/naylor/NRFK/NRFC0315
https://www.nxtbook.com/nxtbooks/nrfe/STORES0415
https://www.nxtbook.com/nxtbooks/nrfe/STORES0315
https://www.nxtbook.com/nxtbooks/nrfe/STORES0215
https://www.nxtbook.com/naylor/NRFK/NRFG0115
https://www.nxtbook.com/nxtbooks/nrfe/STORES0115
https://www.nxtbook.com/nxtbooks/nrfe/STORES1214
https://www.nxtbook.com/naylor/NRFK/NRFG1114
https://www.nxtbook.com/nxtbooks/nrfe/STORES1114
https://www.nxtbook.com/nxtbooks/nrfe/STORES1014
https://www.nxtbook.com/naylor/NRFK/NRFM0015
https://www.nxtbook.com/nxtbooks/nrfe/STORES0914
https://www.nxtbook.com/nxtbooks/nrfe/STORES0814
https://www.nxtbook.com/nxtbooks/nrfe/STORES0714
https://www.nxtbook.com/nxtbooks/nrfe/STORES0614
https://www.nxtbook.com/nxtbooks/nrfe/STORES0514
https://www.nxtbook.com/nxtbooks/nrfe/STORES_sourcebook2014
https://www.nxtbook.com/nxtbooks/nrfe/STORES0414
https://www.nxtbook.com/nxtbooks/nrfe/STORES0314
https://www.nxtbook.com/nxtbooks/nrfe/STORES0214
https://www.nxtbook.com/naylor/NRFK/NRFG0114
https://www.nxtbook.com/nxtbooks/nrfe/STORES0114
https://www.nxtbook.com/nxtbooks/nrfe/STORES1213
https://www.nxtbook.com/nxtbooks/nrfe/STORES1113_buyersguide
https://www.nxtbook.com/nxtbooks/nrfe/STORES1113
https://www.nxtbook.com/nxtbooks/nrfe/STORES1013
https://www.nxtbook.com/nxtbooks/nrfe/STORES_mediakit2014
https://www.nxtbook.com/nxtbooks/nrfe/STORES0913
https://www.nxtbook.com/nxtbooks/nrfe/STORES0813
https://www.nxtbook.com/nxtbooks/nrfe/STORES0713
https://www.nxtbook.com/nxtbooks/nrfe/STORES0613
https://www.nxtbook.com/nxtbooks/nrfe/STORES0513
https://www.nxtbook.com/nxtbooks/nrfe/STORES0413
https://www.nxtbook.com/nxtbooks/nrfe/STORES0313
https://www.nxtbook.com/nxtbooks/nrfe/STORES0213
https://www.nxtbook.com/nxtbooks/nrfe/STORES2013_20130115
https://www.nxtbook.com/nxtbooks/nrfe/STORES2013_20130113
https://www.nxtbook.com/nxtbooks/nrfe/STORES2013_20130114
https://www.nxtbook.com/nxtbooks/nrfe/STORES2013_preview
https://www.nxtbook.com/nxtbooks/nrfe/STORES0113
https://www.nxtbook.com/nxtbooks/nrfe/STORES1212
https://www.nxtbook.com/nxtbooks/nrfe/STORES1112
https://www.nxtbook.com/nxtbooks/nrfe/STORES1012
https://www.nxtbook.com/nxtbooks/nrfe/STORES_mediakit2013
https://www.nxtbook.com/nxtbooks/nrfe/STORES0912
https://www.nxtbook.com/nxtbooks/nrfe/STORES0812
https://www.nxtbook.com/nxtbooks/nrfe/STORES0712
https://www.nxtbook.com/nxtbooks/nrfe/STORES0612
https://www.nxtbook.com/nxtbooks/nrfe/STORES0512
https://www.nxtbook.com/nxtbooks/nrfe/STORES0412
https://www.nxtbook.com/nxtbooks/nrfe/STORES0312
https://www.nxtbook.com/nxtbooks/nrfe/STORES0212
https://www.nxtbook.com/nxtbooks/nrfe/STORES2012_preview
https://www.nxtbook.com/nxtbooks/nrfe/STORES0112
https://www.nxtbook.com/nxtbooks/nrfe/STORES1211
https://www.nxtbook.com/nxtbooks/nrfe/STORES1111
https://www.nxtbook.com/nxtbooks/nrfe/STORES1011
https://www.nxtbook.com/nxtbooks/nrfe/STORES_mediakit2012
https://www.nxtbook.com/nxtbooks/nrfe/STORES0911
https://www.nxtbook.com/nxtbooks/nrfe/STORES0811
https://www.nxtbook.com/nxtbooks/nrfe/STORES0711
https://www.nxtbook.com/nxtbooks/nrfe/STORES0611
https://www.nxtbook.com/nxtbooks/nrfe/STORES0511
https://www.nxtbook.com/nxtbooks/nrfe/STORES0411
https://www.nxtbook.com/nxtbooks/nrfe/STORES0311_v2
https://www.nxtbook.com/nxtbooks/nrfe/STORES0311
https://www.nxtbook.com/nxtbooks/nrfe/STORES0211
https://www.nxtbook.com/nxtbooks/nrfe/STORES0111
https://www.nxtbook.com/nxtbooks/nrfe/stores1210
https://www.nxtbook.com/nxtbooks/nrfe/stores_mediakit2011
https://www.nxtbook.com/nxtbooks/nrfe/stores1110
https://www.nxtbook.com/nxtbooks/nrfe/stores1010
https://www.nxtbook.com/nxtbooks/nrfe/stores0910
https://www.nxtbook.com/nxtbooks/nrfe/stores0810
https://www.nxtbook.com/nxtbooks/nrfe/stores0710
https://www.nxtbook.com/nxtbooks/nrfe/stores0610
https://www.nxtbook.com/nxtbooks/nrfe/stores0510
https://www.nxtbook.com/nxtbooks/nrfe/stores0410
https://www.nxtbook.com/nxtbooks/nrfe/stores0310
https://www.nxtbook.com/nxtbooks/nrfe/stores0210
https://www.nxtbook.com/nxtbooks/nrfe/store_bigshow2010_post
https://www.nxtbook.com/nxtbooks/nrfe/stores_bigshow_20100112
https://www.nxtbook.com/nxtbooks/nrfe/stores_bigshow_20100111
https://www.nxtbook.com/nxtbooks/nrfe/stores_bigshow_20100110
https://www.nxtbook.com/nxtbooks/nrfe/stores0110
https://www.nxtbook.com/nxtbooks/nrfe/store_bigshowpreview2010
https://www.nxtbook.com/nxtbooks/nrfe/stores1209
https://www.nxtbook.com/nxtbooks/nrfe/stores1109
https://www.nxtbook.com/nxtbooks/nrfe/stores1009
https://www.nxtbook.com/nxtbooks/nrfe/stores0909
https://www.nxtbook.com/nxtbooks/nrfe/stores0809
https://www.nxtbook.com/nxtbooks/nrfe/stores0709
https://www.nxtbook.com/nxtbooks/nrfe/stores0609
https://www.nxtbook.com/nxtbooks/nrfe/stores0509
https://www.nxtbook.com/nxtbooks/nrfe/stores0409
https://www.nxtbook.com/nxtbooks/nrfe/stores0309
https://www.nxtbook.com/nxtbooks/nrfe/stores0209
https://www.nxtbook.com/nxtbooks/nrfe/stores0109
https://www.nxtbook.com/nxtbooks/nrfe/stores1208
https://www.nxtbook.com/nxtbooks/nrfe/stores1108
https://www.nxtbook.com/nxtbooks/nrfe/stores1008
https://www.nxtbook.com/nxtbooks/nrfe/stores0908
https://www.nxtbook.com/nxtbooks/nrfe/stores0808
https://www.nxtbook.com/nxtbooks/nrfe/stores0708
https://www.nxtbook.com/nxtbooks/nrfe/stores0608
https://www.nxtbook.com/nxtbooks/nrfe/stores0508
https://www.nxtbook.com/nxtbooks/nrfe/stores0408
https://www.nxtbook.com/nxtbooks/nrfe/stores0308
https://www.nxtbook.com/nxtbooks/nrfe/stores0208
https://www.nxtbook.com/nxtbooks/nrfe/stores-globalretail08
https://www.nxtbook.com/nxtbooks/nrfe/stores0108
https://www.nxtbook.com/nxtbooks/nrfe/stores1207
https://www.nxtbook.com/nxtbooks/nrfe/stores1107
https://www.nxtbook.com/nxtbooks/nrfe/stores1007
https://www.nxtbook.com/nxtbooks/nrfe/stores0907
https://www.nxtbook.com/nxtbooks/nrfe/stores0807
https://www.nxtbook.com/nxtbooks/nrfe/stores0707
https://www.nxtbook.com/nxtbooks/nrfe/stores0607
https://www.nxtbook.com/nxtbooks/nrfe/stores0507
https://www.nxtbook.com/nxtbooks/nrfe/stores0407
https://www.nxtbook.com/nxtbooks/nrfe/stores0307
https://www.nxtbook.com/nxtbooks/nrfe/stores0207
https://www.nxtbook.com/nxtbooks/nrfe/stores-globalretail07
https://www.nxtbook.com/nxtbooks/nrfe/stores0107
https://www.nxtbook.com/nxtbooks/nrfe/stores1206
https://www.nxtbook.com/nxtbooks/nrfe/stores1106
https://www.nxtbook.com/nxtbooks/nrfe/stores1006
https://www.nxtbook.com/nxtbooks/nrfe/stores0906
https://www.nxtbook.com/nxtbooks/nrfe/stores0806
https://www.nxtbook.com/nxtbooks/nrfe/stores0706
https://www.nxtbook.com/nxtbooks/nrfe/stores0606
https://www.nxtbook.com/nxtbooks/nrfe/stores0506
https://www.nxtbook.com/nxtbooks/nrfe/stores0406
https://www.nxtbook.com/nxtbooks/nrfe/stores0306
https://www.nxtbook.com/nxtbooks/nrfe/stores0206
https://www.nxtbook.com/nxtbooks/nrfe/stores0106-globalretail
https://www.nxtbook.com/nxtbooks/nrfe/stores0106
https://www.nxtbook.com/nxtbooks/nrfe/stores1205
https://www.nxtbook.com/nxtbooks/nrfe/stores1105
https://www.nxtbookmedia.com