Battling the Gray Market

Effective monitoring of distribution channels with algorithms

How can you curb gray market activities affecting your consumer and luxury goods so as to maintain a reasonable balance between the costs and benefits of protective measures? A White Paper recently published by Atlantic Zeiser outlines an approach based on available technologies.

In 2016 the management consulting firm A. T. Kearny put the value of goods being traded worldwide on the gray market at around 1,500 billion US dollars or 1.34 trillion euros, and identified an upward trend. The gray market gives rise to huge losses for manufacturers of high-quality products that are distributed in large volumes, such as perfume and cosmetics. For one thing, it provides a gateway for counterfeit products. And controls consume a lot of resources, especially in view of the rapid growth in the technological options available to gray market actors. There is one way, however, of very effectively monitoring distribution channels – with the aid of algorithms and intelligent serialization.

A recently published White Paper, entitled “Battling the Gray Market”, describes how this approach operates, its benefits, and how it can be integrated in established packaging processes with relative ease.

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    Ute Heiler