Agreement Gray

The second is for brands to clarify the importance of buying from authorized distributors. Many consumers follow their favorite brands on social media, but if they are not alerted to the gray market, they can be victims of deep discounts from unauthorized merchants. Grey market formation should be integrated into a brand`s media presence in order to raise consumer awareness of this issue. In some industries, including hard drives, dynamic improvements in product performance go hand in hand with price reductions due to fierce competition between vendors. Lower prices make customers and distributors more price sensitive as they try to protect their cost structures from competition. They are therefore ready to sign large contracts that qualify for the biggest discounts.