Avoid Profit And Brand Erosion Caused By Grey Market Sales

Gray market sales are not only a hindrance in emerging markets

, but a global problem that needs a global solution. Gray market goods usually include products with legitimate trademarks that are intended for sale outside a country but their sales usually occur when the price of an item is significantly higher in one country than another. In a nutshell, entrepreneurs buy the product from the country where it is available cheaply, at retail or sometimes at wholesale prices, import it legally to the target market, and sell it at a profitable price but below the normal market price. But enterprises need to keep in mind that while the estimates of gray goods vary by industry, the value is substantial.

Understanding what the gray market actually means

The sale of gray market products is not covered under the original manufacturers warranty and impacts the customers who assume that the product they bought carries the original warranty. As products find their way into the gray market through unauthorized channel, they sell these products at a higher discount, affecting the enterprises revenues and legitimate channels as well. Unlike the black market, gray market goods are not illegal; instead, they are sold outside of normal distribution channels. Besides representing the products as legitimate, the entire gray market sales process takes sales away from new products, and affects the distributor loyalty.

Why is it usually difficult to detect the offenders?

E-commerce is said to be the primary driver of this ever- growing gray market activity. While some Internet sites blatantly advertise different gray goods, most gray marketers are careful and hide this fact. With the lack of coordination between countries, weak laws in some regions, law enforcement agencies are unable to detect and prosecute grey marketer.

Effective Solutions are the need of the hour

In todays competitive environment, companies need to be aware of counterfeiting, gray market, trademark infringement and much more in order to stay afloat. They need to deploy brand protection software that can protect their brand and trademark from exploitation.

Today companies specializing in online brand protection solutions have come up with SaaS based software solutions that help you to combat gray market sales. These solutions-providers offer cost-effective brand protection solutions that use advanced search technology to monitor activity for any number of products globally. It picks up pricing, discount percentages, and quantities for each product and helps to quickly identify the companies that cause loss of revenue, brand, and customer satisfaction. Invest in the right solution to proactively recapture lost revenues, market share, and brand reputation by tightening your distribution channel.

by: Gladeyas

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