Gray marketers capitalize on lowering surplus inventory, economic conditions, fluctuating distribution expenses and currency exchange rates by exporting products without the approval of the original brand owners.
1. Combat Grey Market Sales with the Right Solutions
Gray market products can be as damaging and costly as counterfeits to a manufacturer. Gray market
goods pose challenges for companies, even though they are company’s authentic products, they can still
cause the company and its brand to lose goodwill when products developed for international markets
enter the domestic market under the company’s authentic brand. Gray market practices disrupt the
invisible competition by attracting the consumers away from the desired channels.
Setting up a false but increased demand for products that are imported by illegal channels and sold at
discounted prices, these gray market products and counterfeits can be damaging to a manufacturer and
have an effect on distributor loyalty. As a result companies lose significant market share because they
are unable to find a solution that can protect their brand reputation effectively.
Gray marketers capitalize on lowering surplus inventory, economic conditions, fluctuating distribution
expenses and currency exchange rates by exporting products without the approval of the original
brand owners. With authorized partners losing revenue to heavy gray market sales, manufacturers
need to look at ways to counter gray market sales channels. Today companies specializing in online
brand protection solutions have come up with SaaS based software solutions that help you combat gray
market sales.
To counter attack the gray market phenomenon that has been eating into the revenue of enterprises,
there are several new developments in brand protection solutions, available to the enterprises. With
high-end brand protection and anti-counterfeiting solutions, companies can implement enforcement
efforts in the apt places and minimize the percentage of counterfeits prevalent in the market. These
brand protection solutions can help enterprises tackle gray markets intelligently by first identifying
risks, then prioritizing the risks and then actually mapping the effects of the brand abuse of the grain
products.
With the right solution you can proactively recapture lost revenues, market share, and brand reputation
through tightening your consumer channels. Track the distributors who are responsible for unloading
these products on the gray market, and take necessary action against them. These solutions can help
identify and track the actual source of the seller and can even offer visibility into the listings on the sites
2. that are conducting this unlawful activity.
Opting for an effective brand protection solution is one way for enterprises to ensure security against
such a gray market activity. Optimized brand protection solutions can safeguard enterprises, and
protect product distribution models and company revenue. To help companies in a wide variety of
industries protect their customers from counterfeits, invest in a solution that offers an excellent online
brand reputation management, and helps reduce the impact of gray market and product counterfeiting
for your company.
Read More About: enterprise risk management, brand management