What is the grey market?

Globalisation makes products available worldwide. While this is of course beneficial to companies, it also poses as a threat, as more and more unauthorised channels are used for product sales.

A grey market is the trade of goods through unauthorised distribution channels. For example, a grey market trader buys products in a low-price country and sells them at higher margins in a high-price country. Another example would be that he offers products without authorisation in a country where they are not (any longer) available for strategic reasons or due to high demand.

The economic damage is in the billions – and the image loss of the brands affected is immense.

In order to prevent these so-called grey market activities, companies try different approaches. For example, attempts are being made to identify and stop grey markets activities worldwide. Products and packaging are marked with tamper-proof features to prevent counterfeiting or repackaging. On top of this, companies are trying to create more transparency within their supply chains, to ensure that only original products arrive at the desired destination.

Preventing and stopping grey market activities is a complex issue, therefore companies need a tight security concept. SCRIBOS offers numerous interlocking solutions, as well as in-depth consultation with grey market experts, that help your company combat this issue.