Gray market goods cause growing challenges for manufacturers of luxury goods.
Manipulated products, products that should have been removed from circulation, and products intended for a different market are being distributed in large scale on the gray market. Gray market goods are those being distributed and sold outside authorized manufacturer channels.
Manufacturers experience significant losses and potentially declining brand value due to gray market activities. With the increased complexity of the trading landscape together with a rapid development in technological options, criminal actors can easier sell these gray market goods. Moreover, controls by manufacturers are costly and it is difficult to stay ahead of technological development.
However, with the aid of algorithms and intelligent serialization, manufacturers can effectively monitor their distribution channels. Thereby the presence of their products in the gray market can be reduced.
In a recently published study by Atlantic Zeiser you can learn more about how to combat the gray market. The study offers an approach for how to win the battle, its benefits, and how it can be integrated into established packaging processes.