Advanced Solutions To Curtail Gray Market Sales
Gray market also known as a parallel market is the trading of legitimate and genuine manufactured trademarked goods that are sold outside the manufacturers authorized trading channels. The products intended for a certain country market are diverted to some other country market through unapproved distribution channels. This practice is also called parallel importation. Gray market activity is calculated to account for more than $40 billion in revenue each year, according to a study by Kotler and Keller back in 2009. Needless to say with the advent of internet technology, the figures are likely to have increased. The most important reason for gray market to thrive is the manufacture maintained price differences that exist throughout the global markets. For various competitive reasons, manufacturers generally price the same product differently in various markets.
Today gray market exists for pharmaceutical drugs and the overall medicine market. According to a research by Kesselheim and Choudhary, a recent study highlights that approximately 11 percent of the Americans have been procuring less costly prescription drugs from other countries, mostly through the internet.
This apart, the consumer electronics vertical comprises of one the biggest online gray market source today. The reasons for this is the heavy growth of online retail sales, electronic goods along with zero legal protection against gray marketing of consumer electronic products. The impact of gray market sales on reputed brands are manifold. It leads to loss of revenue, brand erosion and also loss of consumer goodwill which becomes difficult to retrieve.
In order to combat gray market and its adverse effects, eminent service providers of brand protection solutions have introduced a SaaS-based software having a propriety search capability. This helps companies to find out where and at what price their products are being sold. It also provides real-time monitoring for selling listings goods, making use of advanced search agents that can successfully track detailed market inputs from various sources. This comprises of the following:
* Franchise and huge distribution websites
* B2B sites
* Trade boards
* Independent and gray market web sites
* Blogs
* B2C sites
* Auction sites
This information that is collated through innovative online brand protection solutions is delivered to the consumer directly in a comprehensive, multi-dimensional, market intelligence format via the web portal. This helps users to establish personalized dashboards, user formatted data export files and custom report views. All the information that is accessible and can be used within a perceptive user interface, providing the capacity to create and manage cases histories, analyze evidence, as well as understand the correlation between the suspect enterprise’s, partners and other allied contacts.
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