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Lightning-fast AI and insights from 1,000+ sources – The next generation
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Blog 29th Aug 2024


REMOVING GRAY MARKET THREATS USING ADVANCED AI AND HUMAN EXPERTISE



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As brands continue to grow their global appeal, consumers in international
markets are keen to get their hands on popular products at lower price points.
Third-party sellers have filled this gap with gray market goods – but this can
often be in contravention of local regulations. Worse still, some of these
products have had expiry dates and original packaging removed, putting consumers
at risk.

Our latest eBook, The Three Key Components of a Successful Brand Protection
Program, analyzes the current threat landscape facing brands and the tools
businesses can use to maintain consumer trust and brand reputation.

Bad actors exploit consumers through three distinct threats: counterfeits, brand
impersonation, and gray market goods. Read this blog to explore gray market
threats in more detail and learn how you can adapt your Brand Protection
strategy to safeguard consumer trust and prevent revenue leakage online.

Table of contents:

 * The impact of gray market goods on consumers and brands
 * How Unilever combats high-risk parallel import
 * How you can stop grey market sellers from winning the AI arms race


THE IMPACT OF GRAY MARKET GOODS ON CONSUMERS AND BRANDS

Consumer price sensitivity, globalization, and the rise of eCommerce are seen as
large driving factors behind the growing gray market and influx of parallel
imports that brands are facing today.

Grey market threats are varied and stretch across the whole value chain.
Manufacturers overproducing, authorized distributors not adhering to resale
policies, sales by unauthorized distributors, off-label sales of prescription
medication, and the sale of expired products are just a handful of threats to
brands and consumers.

As its name suggests, the gray market is a murky area where detection and
enforcement options are not immediately clear. The risks, on the other hand, are
well documented; gray market threats put revenue and licensing agreements at
risk – and there is the potential for consumer harm in highly regulated
industries. Left unchecked, these issues can draw the scrutiny of regulators and
lead to fines or costly legal action. 

However, there are hurdles that you’ll likely face when tackling gray market
threats. You’ll need to navigate a plethora of national or regional regulations
that govern issues such as parallel imports in different jurisdictions.


UNILEVER: COMBATTING HIGH-RISK PARALLEL IMPORTS

Unilever has a large portfolio of brands available across countless territories
and regions. Each territory has its own regulatory regime, and products require
approval before being distributed. On behalf of Unilever, Corsearch flags
parallel import goods that are being sold in territories without regulatory
approval, preventing reputational damage and potential penalties.

For one Unilever global beauty brand, Corsearch’s image technology revealed
that 70% of US listings were being shipped from India, and the products likely
did not have approval from the U.S Food and Drug Administration (FDA).

With the help of Corsearch’s analysts, Unilever was able to take down the
infringing listings, preventing any potential intervention by the regulator.
Prior to partnering with Corsearch, Unilever’s brand teams had little visibility
of parallel imports such as this and could not proactively enforce against
high-risk listings that put consumers at risk.

“Corsearch provides the best capabilities to spot this content and to make sure
that we are in control of taking it down.”

Svetlana Tsareva, General Counsel Skin Care, Prestige and Head of Brand
Protection at Unilever


GRAY MARKET ENFORCEMENT

When developing a gray markets strategy, brands must first investigate the
origins, volumes, target territories, online representation, and sellers of the
goods.

Listings for gray goods such as parallel imports will often contain official
imagery to appear legitimate, misleading consumers. Brands can reduce these
listings by enforcing copyright laws. Regulatory enforcement is also possible if
imported products fail to meet local regulations, such as language requirements
or safety standards.

Additionally, some platforms prohibit parallel imports. Brands can leverage
these policies by providing evidence of the goods origin – such as serial
numbers or packaging details – which can be obtained through a test purchase.


HOW YOU CAN STOP GREY MARKET SELLERS FROM WINNING THE AI ARMS RACE

Gray market sellers are turning to generative AI tools to create detailed
product illustrations, advertising materials, and listing descriptions at speed
and scale. And this issue is only set to grow as AI tools become increasingly
intuitive. So, what can you do to stay ahead of the threats and safeguard brand
reputation?

While AI certainly can be used for illicit purposes, it is also a force for
good. Businesses are already harnessing it to detect, predict, and act against a
multitude of threats, protecting consumers from harm.


WHAT IS HYBRID INTELLIGENCE?

It takes human intervention and diplomacy to stop an arms race. That’s why it is
critical that brands can harness a combination of the speed, scalability, and
pattern recognition capabilities of AI with the judgment of industry-specific
experts with access to the largest datasets. This approach is known as ‘Hybrid
Intelligence’.

This synergy of advanced AI and human expertise allows you to detect,
prioritize, and remove gray market threats rapidly across all channels. With
high degrees of accuracy, you can protect brand reputation and safeguard
consumers, with greater impact and improved ROI.

As highlighted in our recent eBook, Brand Protection solutions underpinned by
hybrid intelligence enable you to take down gray market threats at scale –
preventing consumer harm, regulatory infringements, and revenue leakage.


AUTOMATED DETECTION AND THREAT PRIORITIZATION

Automated threat detection and prioritization allows you to find and remove gray
market listings across your key channels. AI reduces manual workload and speed
up threat detection by recognizing the hallmark signs of gray market goods –
such as the item being sold from an unauthorized country, non-branded imagery,
lower price points, and low stock count but high sold count.

How AI addresses gray market threats – An example of how a parallel import
listing on a marketplace is automatically detected

IMAGE TECHNOLOGY

Advanced image technology allows you to match unbranded images extracted from
gray market listings against a library of images. You can find text in images
with optical character recognition (OCR), and similar (but not necessarily
identical) products and brands with similar matching. Use logo detection to
match your logos, symbols, and patterns – even if obscured.


AI-ASSISTED ENFORCEMENT

Your Brand Protection platform should deploy AI that learns from the actions of
analysts, quickly recognizing risks and recommending the top threats for action.
The more actions taken by analysts, the more your AI will be able to flag
similar infringements using an enforcement predictability engine.

Advanced AI enables you to surface over 70% more threats that would otherwise be
missed. Auto-generated takedown notices and platform APIs mean you can improve
time to action and minimize the risk to your consumers.


EBOOK: BUILDING A SUCCESSFUL BRAND PROTECTION PROGRAM

Successful Brand Protection programs combine three key components to deliver
substantial ROI.

Use our eBook to dive deeper into the technology and expertise you’ll need from
your solution provider to realize your strategy.

Read eBook >


GET VISIBILITY AND CONTROL OF GRAY MARKET THREATS, ANYWHERE ONLINE

To find and action the gray market listings that present the most risk, your
team needs the right solution that harnesses automation and expert input. We
blend advanced AI and human expertise to provide leading global brands with
anti-gray market solutions that protect consumers from harm and preserve vital
online revenues.

Our Brand Protection solutions give you:

 * The broadest visibility of threats across all online channels
 * Instant identification of gray market listings
 * Enforcement with proven success
 * Lasting impact to protect your brand, IP, and consumers

Our imaging AI uncovers 70% more than keyword searches alone, while our
prioritization engine saves you hundreds of hours in manual review time.

Request a demo to see how you can harness our technology to swiftly detect and
remove gray market threats across your key channels.

Request a demo
✕


REQUEST A 15 MINUTE PERSONALIZED DEMO

Our trusted and recognized status with online platforms helps us to remove
illicit listings 46% faster than other vendors. Demo our technology to see why
Corsearch is the right choice for you.

 * 1,400 marketplaces platforms covered
 * 1.3 million enforcements on platforms every month
 * 99.9% compliance rate in removing infringements
 * $147 million worth of counterfeit stock removed monthly for luxury fashion
   brands

Corsearch is trusted by:

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YOU MAY ALSO BE INTERESTED IN

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THE THREE KEY COMPONENTS OF A SUCCESSFUL BRAND PROTECTION PROGRAM

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STOP GRAY MARKETS

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