Final answer:
The practice of selling luxury perfume brands like Givenchy and Christian Dior's Dune at mass-retail outlets outside authorized channels is called a 'gray market'. This involves legal, but unintended distribution methods by the manufacturer. It's symptomatic of the competitive nature of industries and the drive for increased profits.
Step-by-step explanation:
When luxury perfume brands like Givenchy and Christian Dior's Dune are sold at mass-retail outlets outside of authorized channels, this practice is known as a gray market. The gray market involves the trade of a commodity through distribution channels that are legal but unintended by the original manufacturer. Products, such as perfumes, colognes, and aftershaves, which have levels of aromatic compounds dictating their concentration, can end up being sold in this manner, potentially affecting the brand's reputation and prices.
It's an issue that can also reflect broader economic practices, such as when firms enter into price fixing agreements. In the perfume industry, like in the case with French laundry detergent producers, the diversion of goods into the gray market can also be a result of the intense competition among brands and the temptation to increase profits by expanding distribution channels, even if it's through unauthorized ones.