Grey goods are typically those products that have been imported or distributed without the knowledge of the legitimate manufacturer or authorized distributor. These products are typically sold at lower prices compared to their MAP agreements. Such grey products can easily erode market value and create havoc for the legitimate distribution channel. It is essentially the trading practice of a product that uses distribution channels which may or may not be legal but are still unauthorized by the legitimate manufacturer of the product.
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. Optimized brand protection solutions are available that can help enterprises tackle grey markets intelligently by first identifying risks, then prioritizing the risks and then actually mapping the effects of the brand abuse of the grey products to the OEM agreement. These solutions can help identify and track the actual source of the seller and can even offer visibility into the listings on the sites that are conducting this illegal activity.
Most of the current brand monitoring solutions come equipped with an intuitive user interface that has the ability to check and track case histories. Additionally these solutions can offer evidence based on detailed analysis and can therefore establish better connections between suspect distributors and their product listings. Such solutions can be used as a defense against the grey market sales simply by their ability to find new targets and networks that sell grey market goods. Brand violations often occur with grey market activities, and brand protection solutions can help track such violations and pinpoint the different areas where the product has been misdirected.
Grey market products can have a negative impact on customers who are expecting the original manufacturer’s brand quality as well as their accompanying warranties. Often these grey products are “end of life” products that may have been thrown away because newer models have replaced them. Opting for an effective brand protection solution is one way for enterprises to ensure security against such grey market activity. Optimized brand protection solutions can safeguard enterprises,and protect product distribution models and company revenue.