The grey market in the fashion & luxury sector is a growing phenomenon, covering many product categories such as perfumes and cosmetics, watches and jewellery, bags, leather goods, photographic equipment and even wines and spirits. In the USA, research shows that this market is worth over $6.3 billion in the cosmetics sector alone.
The grey market refers to products that are marketed through distribution channels other than those authorised by the manufacturer, causing damage to the brand’s image vis-à-vis customers and a loss of control by the manufacturer over its official dealer network. Furthermore, the products sold in the grey market may be counterfeit, non-authentic, and contain unauthorised and potentially dangerous ingredients; they may be expired or not stored at the right temperatures. Finally, with regard to liability, if the retailer is not authorised, the manufacturer is not liable for the quality of the product, resulting in lower protection for the consumer.
To counter this phenomenon, Elision has implemented a product traceability system based on the use of RFID technology for Acqua di Parma, the Italian fragrance manufacturer belonging to the LVMH Group.
Acqua di Parma and Elision have embarked on a path that, over the next few years, will allow them to take full control of traceability at the individual item level in the production, distribution and after-sales channels. The aim is to ensure that customers always receive the product in the best conditions and with all the guarantees of quality, sustainability and reliability that have continuously distinguished Acqua di Parma as a symbol of excellence, craftsmanship and Italian lifestyle for over a hundred years.
