Protect Your Business, Increase Revenue by Effectively Combating Gray Market Sales

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In today’s fast growing global economy, the gray market menace is becoming a critical concern that most brands encounter.

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Protect Your Business, Increase Revenue by Effectively Combating Gray Market Sales

  1. 1. Protect Your Business, Increase Revenue by Effectively Combating Gray Market SalesIn today’s fast growing global economy, the gray market menace is becoming a critical concern thatmost brands encounter. The gray market basically refers to the flow of goods through distributionchannels other than those authorized or intended by the manufacturer or producer. Whenevergenuine branded goods are available for sale at different prices in different markets or channels, thepotential for gray marketing exists. Despite the manufacturers intent that its product be consumedabroad, "gray marketeers" lawfully acquire the product abroad, import it back into themanufacturing country, and sell the product to consumers at a cost lower than the non-graymarket products cost.Gray Market – A concernWhile the importance of gray market varies by category, the impact is large. In recent years, it hasbecome a bane to brand owners and the plague of successful supply chains. Although gray marketactivity ebbs and flows as exchange rates, price differentials and supply conditions change, surveysconfirm the increasing incidence and scope of gray markets exist in many industries.The marketing activities by gray marketers are beyond the control of authorized distributors andmight not project situations consistent with those planned by the manufacturer or the authorizeddistribution network. Owing to the very nature of gray market it becomes difficult to track thenumber of products that are sold through such distribution channels monthly or annually. Theseproducts have a damaging effect on the credibility and bottom-line of brands and companies.Gray Market – The impact
  2. 2. Gray market practices disrupt the invisible competition by attracting the consumers away from thedesired channels. Companies can buy in bulk and resell to unauthorized distributors, a situation thathas characterized the market for computer parts for some time. Additionally, the growing presenceof electronic commerce (eCommerce) heightens manufacturers concerns about the gray market.The Internet makes it easier for firms operating in the gray territory to reach a wide range ofcustomers with accessibility, and ability to connect consumers with product suppliers worldwide.Manufacturers are concerned about the gray market, especially because recent court rulingshave practically forced manufacturers use of intellectual property rights to protect products fromentering the gray market. Manufacturers dislike the gray market economy because it destroystheir professional goodwill, brand image, and profit margin.Gray Market – The SolutionEnterprises need a solution that can automatically search and detect violators in real-time and offerunmatched visibility. Look for a modern online fraud detection solution that come with multipleenforcement features that include, an enhanced anti-counterfeiting software solution, advancedsearch capacities that scan the internet on a daily basis, the application of human intelligence toensure data integrity and suspect prioritization depending on client specifications.Ensure brand protection and combat gray market and its adverse effects, by joining with a reputedservice provider.Read More About: enterprise risk management, brand management, Anti-Fraud.

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