Diversion – also known as the gray market – is the trade of genuine products in markets they’re not intended for.
Why is the gray market becoming such a big problem?
From the consumers’ perspective a label in a foreign language may not mean much – as far as they’re still getting the genuine product. If you’re in business, however, it’s different: your license payments may be compromised, and it could become difficult to track safety certification from country to country.
Gray market transactions can often be fought with a civil action. But first you must know exactly what is happening where. Deploying the right technology to track your products is crucial:
Conventional track and trace solutions go some way towards combating the gray market. Item-level batch codes can be used to monitor the whereabouts of goods at any time. However we also strongly recommend that you go a step further and implement a covert marker or an encrypted digital solution for an added level of security.