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Product Diversion/Gray Market Goods

Gray Market and Product Diversion issues generally involve the existence of legitimate merchandise in unauthorized market areas. Although the ultimate owner (OEM) of the product is most often the victim in these cases, there are also supply chain partners and distributors whose exclusive territorial rights and opportunity costs are likely to be diluted and potential lost opportunities for consumers can result.

Product diversion can be domestic and/or international in scope. Resolution requires a diligent and comprehensive market analysis to establish conclusive evidence of the scope and value associated with the scheme.

In IPSA’s experience, the violators are very often legitimate partners or an employee within the manufacturing and distribution processes and therefore the resolution may require the highest level of discretion. A complete analysis of all risks associated with the corrective response and continuing operations is also critical. Solutions can require in-depth audits and a continuing monitoring function as that reflected within IPSA’s personnel core expertise.

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