Gray market goods have a substantial impact on brand equity. The influence of marketing communications initiatives on brand equity has been gaining significant attention of late.

1. Importance of Curtailing Gray Market Sales
Gray market goods have a substantial impact on brand equity. The influence of marketing
communications initiatives on brand equity has been gaining significant attention of late. This is due to
the changing international accounting standards associated with the reporting of the financial value of
tangible assets which in turn is a result of increased focus on the impact of marketing communication
on brand performance. The marketing activities by gray marketers are beyond the control of authorized
distributors and might not project situations consistent with those planned by the manufacturer or the
authorized distribution network. Hence, it is essential to estimate the impact of gray marketing on the
brand equity.
Gray markets have been a major concern for the retailers and manufacturers since the mid 1980’s. The
international gray market size is somewhere estimated between from $US7 billion to $US10 billion.
Gray Market and Counterfeiting
Gray Marketing is not same as counterfeiting. According to Duhan and Sheffet, the term “gray” suggests
an “almost black market”. Gray market activities involve selling the trademarked goods and products
through distribution channels that are unauthorized by the trademark holders. When gray market
activities take place across international borders then the term “parallel importing” is used. Gray
markets results in loss of brand reputation as well as loss of revenue.
In order to combat the dangers of gray market activities companies specializing in enterprise risk
management have come up with brand protection solution, in the form of a SaaS based software that
can halt gray market sales. The software effectively monitors open markets on an end-to-end basis for
buy/sell listings of products and part numbers with the help of advanced search agents. These search
agents also trace detailed market information from a wide range of market types that includes:
● Franchise and large distribution websites
● Independent and gray market websites
● Email-based forums that aggregate buy/sell listings

2. ● Trade boards
● Auction sites
● Chat
● B2C sites
● Blogs
● B2B sites
Contrary to the generic brand protection solutions this Saas based software delivers data directly from
a website to the end user in a complete, multi-dimensional market intelligence format. Referring to
this format the users can have customized dashboards, custom report views and create user formatted
export files. All vital information is accessible and can be used within a perceptive interface. This assists
investigators to develop and manage case histories, evaluate evidence and understand the link between
partners, suspect companies and other related contacts.
Read More About: brand management, Anti-Counterfeiting, Anti-Fraud