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Grey Market Diversion


Grey-market goods refer to “legal goods” which are sold outside normal distribution channels by companies which may have no relationship with the producer of the goods. Frequently this form of importing occurs when the price of an item is significantly higher in one country than another.

This situation commonly occurs with electronic equipment such as cameras, computers, computer parts, watches, cosmetics, handbags,and designer clothes. Entrepreneurs buy the product where it is available cheaply, often at retail but sometimes at wholesale, and import it legally to the target market.

Genuine products on the grey market are typically sold alongside counterfeit items by entrepreneurs who are not interested in quality control or whether a product is out of date, or has had UPC codes scraped to avoid detection. Grey market goods are often obtained through theft or fraudulent means that can make it difficult for organizations to track.

At CIS we offer services to assist companies in keeping their products out of unauthorized and unintended supply chains.

  • Supply Chain Analysis
  • Protection Technologies and Processes
  • Brand Monitoring and Enforcement