What is the importance of fighting gray market goods and counterfeit products?
Overall losses to manufacturers, channel partners and consumers are immense. It is estimated that over $40 billion in legitimate products move through the gray market each year, resulting in $5 billion in lost profits annually to manufacturers. However, more important is the impact to channel partners and consumers. When counterfeit and gray market goods enter the market place, channel partners not only compete with heavily discounted products, they are also dealing with the associated customer satisfaction issues that arise.
