What are gray goods?
Gray goods refers to goods that are sold through processes aimed at selling and distributing products or creative efforts of another person or business entity. This means that even if the product itself can actually be a real trade, the way the product is packed, sold, imported, exported or distributed may vary significantly with the intention of the product owner for this particular product. There is a significant difference between the gray goods and the black marketplace, despite the appearance of similarities. This is because goods on the black market are usually illegal due to factors, such as attempts to fraudulently duplicate the original except illegal sales.
The main problem considered in the sale of gray goods is an effect that has such an unauthorized sale to the account of manufacturers or legally authorized distributors of the item. These goods are usually a huge problem for companies with global association that may have a harder time to monitor the distribution of their goods on foreign markets. The perpetrators of gray goods are usually focused on major companies with highly sought -after products. The attraction of these companies is a profit that can be achieved from the sale of the company due to the level of demand for these products.
Usually gray goods are sold at a lower price than the originals of the perpetrator of the law. The illustration of the concept of gray good scanning can be seen in the case of a company that produces high -quality body milk manufacturers selling product for $ 85 (USD). The same product can be sold to an unauthorized distributor for 60 USD to the gray market and significantly affect the original product manufacturer by causing a profit to make Selling's body milk through their official distribution channels. If this is the case, the legal company has the opportunity to seek legal compensation in the court of the relevant jurisdiction.
Gray Goods not only affects ZISThe labeled range of manufacturers and legal distributors, as it can also affect their reputation. For example, provided that the actual body milk owners have created a marketing strategy for the sale of the product, the law of gray goods distributors can thwart this effort, causing them to lose both money and reputation. Gray goods can be overwhelmed or label design can be changed to reflect something that is contrary to the principle of the actual product owners.