Gray Market

Features & Benefits

Gray market can be considered a fraudulent means of inflating profits for distributors, while reducing revenue from brand owners.

It has been estimated that as much as $63 billion per year in revenue is lost to gray market diversion in the U.S. Within the IT industry alone, nearly $5 billion in profits is lost to gray market activity each year. The problem is more prevalent in other countries, potentially costing hundreds of billions of dollars per year in lost revenue to thousands of companies worldwide. Considering that manufacturers are losing so much to Product Diversion, it is no wonder that companies are now taking a hard look at their Brand Protection Strategies to combat this ever increasing problem.

The net effect of gray market is two-fold:

  • First, the authorized distributors are forced to compete with artificially lowered prices by the gray market activity, causing significant conflict and supply chain demand issues within the authorized sales channels.
  • Second, product revenue streams for brand owners become unbalanced, causing inflated sales metrics in some regions, while incurring reduced sales in other regions. In many cases, well-known retail stores may acquire gray market products through non-traditional channels, bypassing the brand owners distribution network altogether.


eApeiron Solutions can help global enterprises reduce or potentially eliminate the issues caused by gray market activity. eApeiron uses best-in-class consulting and technology solutions to monitor, detect and defend against this ever growing problem. eApeiron's approach to developing an end-to-end Brand Protection Strategy includes five steps:

As a global enterprise and with experience in analyzing, developing and implementing gray market solutions, eApeiron offers companies expert consulting coupled with the application of advanced security and tracking technologies.

One example of eApeiron technologies is the KODAK TRACELESS AntiDiversion (AD) System. Kodak Traceless AD System is a truly invisible, antidiversion system for pharmaceutical, consumer and industrial goods, labels and packaging, and secure documents KODAK TRACELESS AD System can be applied by commercial inkjet (CIJ) printing processes and provides invisible and high security serialization in the form of patterns, alpha-numerics and barcodes.

For more information on how eApeiron can help your company create and administer solutions to gray market activity, contact an eApeiron Solutions expert for an evaluation of your issues and opportunities.

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