Grey Market Diversion
Grey market diversion refer to “legal goods” which are sold outside normal distribution channels by resellers that have no relationship with the original manufacturer or trade mark proprietor of the product. While these goods have been authentically produced by (or with the permission of) the original manufacturer, they have been “diverted” outside of the approved channels and terms of the agreement between the manufacturer and its authorized resellers. Additionally, these genuine products are often sold alongside counterfeit items on the grey market by diverters—who care little about controlling the quality or legitimacy of the products—and may have been obtained through theft or fraudulent means.
Grey market diversion is potentially costing companies worldwide hundreds of billions of dollars annually in lost revenue as manufacturers continue to lose sales to diverters. Brand owners’ reputations may also be at stake as consumers place less trust in their products after experiencing problems with their grey market purchases. The grey market is clearly placing brand owners, their products and the future of their companies at risk—which is why exploring brand protection strategies to combat this increasing threat is so important.
GBS’ Labeling and Brand Protection Solutions reduce the possibility of a brand owner’s products being diverted to this unauthorized supply chain. We utilize innovative technology to create robust solutions to safeguard your brand from tampering, fraud and grey market diversion. Our three core preventative technologies allow you to create anti-counterfeiting and tamper evident labels. Within each of these technologies there is an array of security features that can be incorporated into your customized solution.
Contact us today at 800.329.9434 or email@example.com to learn how to ensure your products are protected against tampering, fraud and grey market diversion.