Isn the gray market fueled by internal sales program and policies at the manufacturers?
Gray market goods are shopped globally for best prices. They can move from multiple tiers before they actually reach the end-customers. Often times a shadow inventory will exist inside and outside of authorized distribution channels making it difficult to forecast true demand. Resellers may abuse discount programs that are legitimately crafted by manufacturers to compete in the global marketplace. These sales programs can be exploited and targeted for weaknesses that exist inherently in some of these programs. Individual manufacturers need to look internally to understand how products are moving through legitimate channels and if possible to verify legitimate customers. Manufacturers can look at the terms and condition of contracts with their channel partners, put discipline around internal business practices to close loopholes that may be exploited, and pursue litigation against companies that willfully abuse practices, breach contracts and provide fraudulent information. Q. Where doe
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