Where do counterfeit products occur in the distribution cycle?
The entrance of counterfeit goods can occur anywhere in the distribution cycle. For example, it can occur when a broker selling counterfeit goods claims they are legitimate goods and sells them to another broker or even directly to a distributor or reseller. It can occur in every touch point in the distribution model. Thus, eventually counterfeit products can become co-mingled with genuine products and sold through the gray market thus making distinguishing between genuine and counterfeit extremely difficult. This illustrates the importance of manufacturers controlling the flow of products through strict contract compliance. As long as resellers and distributors follow the guidelines agreed to with manufacturers, no counterfeit product would enter the distribution system.
