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Revaz A., which gives users the introduction of mandatory labeling?

Revaz Yusupov: Codes, marking, protected by cryptography, is not just stickers. They give a guarantee of purchase fakes. Any using app an Honest SIGN (the name of the marking system) can check each code to verify the origin of goods. Now working on the launch of the program of motivation for users: they can even earn by scanning products. Due to the mode of isolation, the launch had to be postponed, but the project plan to renew.

Marking market expands the face to the consumer, making it more secure and ensures his rights. Perhaps for the first time in a long time so reliably, because for the first time will include in the process of quality control of goods.

How to use the code marking? What to scan?

Revaz Yusupov: Anyone can find all the information about the product before buying it – enough to read the data code Data Matrix (square black and white label with dots inside) and check them in the “Honest SIGN”. Most often such codes are cigarettes, shoes, coats and medicines. So made in China product can not be sticked the label Made in Italy.

in addition to Data Matrix codes can be decoded any other symbols on the packaging: how to care for the product, to use and dispose of what it means to a particular certificate. For those who sort waste, will be helpful icons denoting different types of paper, glass, metal and plastic. The availability of such information in General will change consumer behavior, make it more conscious. As a consequence – to change the marketing techniques of brands, which are often based on the irrational behavior of buyers. This is the first attempt in the world to create a system of public control in the entire country. Through gamification, frequency and geography checks, this will allow you to find “gray” entrepreneurs even in the most inconspicuous places. Application already downloaded more than 500 thousand times, checked over five million items.

Timing of the introduction of mandatory labeling for this spring for a number of product groups have been moved. If everything now goes according to the schedule?

Revaz Yusupov: more time to educating pharmacists and shoemakers. For them, the marking is moved and will become mandatory from 1 July 2020.

Extended the timing of the experiment was the milk, the mandatory labelling will begin in January 2021. We got a reprieve and farmers, small producers. This industry, like other consumer, is a priority in terms of control of forgery and illegal trafficking.

Save all set deadlines and to avoid transfers managed when you start marking Taba��and. It speaks of discipline and constructive attitude of the industry.

a Few weeks ago, the Ministry of industry and trade said that the timing of the experiments and mandatory labeling more move will not. Given the number of companies in the system and ordered codes we agree with the assessment – the vast majority of legitimate companies are ready. It would be wrong to infringe on their interests in favor of those who are not so responsible attitude to training. We are in the schedule approved by the government. The system is fully functional.

From April 1 started the experiment by labeling of mineral water. Talking about the first results, how much product can come out of the shadows?

Revaz Yusupov: For one month to experiment, which will last until March 1, 2021, joined 28 bottled water manufacturers, two importers and six retailers. The work has just begun. By the end of 2019, the market volume of bottled water in the country has reached 3.6 billion dollars. According to this indicator Russia is among the top 10 countries in the world. To occupy a higher position does not give the informal sector, which is at least 24%, according to some estimates, up to 60-80%. Marking of water will allow to guarantee a rational use of subsoil and quality of products from factory to sale. It will completely close the possibility of the supply chain or on the counter and illegal products.

How many companies are registered in the system, digital marking and traceability of products? Which groups commit the largest increase?

Revaz Yusupov: In the system registered more than 200 thousand companies from sectors covered by the marking. In some cases, is already a mandatory requirement, in others it transition pilot projects. For each industry, there are defined dates and stages of implementation. The highest increase of registered companies in the tobacco industry – manufacturers and importers used more than 10 billion codes. In the lead – footwear (2 billion codes) and medications (over 900 million codes).

In the national system of integrated manufacturers and importers of garments and light industry products, perfumes, tires, cameras, dairy products and drinking water. The last two categories – special attention, as it is the products whose quality plays a special role for human health.

In Russia the crisis of legalized remote trade. The decision to work effectively together with mandatory labelling of medicines. Digital tracking of drugs will allow to protect the consumer, guaranteeing the legal origin and the quality of medicines. Marking in these situations can actually save lives.

in addition, the state in real time using�� system will be able to analyze the supply of goods and provide access to them in each region, and to prevent manipulation of prices, the creation of artificial hype. It will be possible to determine the most responsible entrepreneurs and to support them.

In what areas have seen the largest “whitewashing” of the market?

Revaz Yusupov: During the experiment for the labeling of drugs in Russia was revealed violations on 500 million roubles, it came to light secondary sales of expensive drugs to treat serious diseases, which the state purchased for hospitals. As a result, according to Roszdravnadzor, in 2019 the turnover of substandard drugs decreased 2.5 times.

After the introduction of labeling of tobacco products were detected about 30% of the companies which are included in the list of largest manufacturers in Russia. 2019 they started to transmit to the IRS information about the maximum retail price for cigarettes. With the help of “Honest SIGN” have managed to identify several large consignments of counterfeit cigarettes, which were sold in large chain stores throughout the country. The system allowed us to track a stolen from legitimate manufacturers party.

the Shoe market due to the introduction of labelling is still in a pilot phase managed to clear about 5-6 times. Expected that the numbers will eventually be even more.

the Most striking example of how the system works, was the introduction in 2016 of mandatory labeling of fur coats. With this industry and started whitewashing other groups of goods. In just one year, the share of legal trade of fur products and the number of working companies increased about 10 times. Many entrepreneurs had to “whitewash” and start working transparently.

How to business is complicated and costly transition to mandatory labeling? What do you need?

Revaz Yusupov: System is built on those technologies and solutions that have been used by entrepreneurs. No need to buy more than one register, create an individual signature, go to another operator of the electronic document or globally to retool a line to manufacture. At the time of transition it all depends on the size of your company and the method of application of the code. For example, if the code attached to the product in the form of labels, then buy nothing. It is sufficient to adjust the template so that it appeared code Data Matrix.

If the manufacturer chose the method of direct application code, then the line may have to put a special printer – it will appear codes. Although the labeling of dairy products need to print the codes were already in the production of packaging. This decision will be true for other consumer goods.

the connection Time for small comcompanies may be 1-3 days. Medium-sized businesses will need to upgrade or replace software – in this case, it is possible to meet in two weeks. Large business will need a connection of 1-3 months.

How reliable the system is secure?

Revaz Yusupov: is Unique Data Matrix codes applied to the packaging at the factory, and the entire journey of a product can be traced to the store. The issue of codes is carried out centrally at the servers in the system. To pluck them from the database is impossible, since they are not stored in the system until the moment of emission and transmission to the customer. Get codes when transmitting to the customer protected by the strengthened digital signature.