THE GREY MARKET

SUMEET DUHANJOHN OTTO

PART 1 – Introduction PART 2 – Issues related to Grey Market PART 3 – Ways to check Grey Market ? PART 4 – Conclusion PART 5 – Questions and Answers

What Does Gray Market Mean?

1. An unofficial market where new issues of shares are bought and sold before they become officially available for trading on the stock exchange. 

2. The sale or import of goods by unauthorized dealers.

Grey Market (‘Parallel Imports’)

Counterfeit Goods – What are they? A counterfeit is a good which is identical but not

genuine, or substantially indistinguishable from, a registered mark

Grey Market Goods (also “parallel imports”) – What are they? When someone other than the designated

exclusive importer buys genuine trademarked goods outside of a country (e.g. Ireland) and imports them for sale in the Ireland in competition with the exclusive Ireland importers.

Counterfeit v. Grey Market

-Where they are mainly active

Pharmaceuticals Electronics Automobiles Tobacco Alcohol Fashion goods(perfumes, jewelry and bags) currency

Examples

The 45+ grey market accounts for 36% of the population in NI and 33% of the population in RoI.

The population of this market is forecast to increase by 8.5% in RoI and 7.1% in NI by 2008, meaning that the grey market accounts for the majority of population increase. Average earnings of this group have also been increasing at a higher rate than those of adults under 40 years.

market research.com

Users

Statistics

Advantages

-Cost of operations cut as no middlemen/distributors are involved. -Brand reaches every tangible market -Profits are usually much higher as scale of distribution is larger.  

Disadvantages 

- May breach quiet a few trade norms - legally trademarked goods sold through unauthorized channels - Copyright laws are usually breached - Tariffs/ Pricing Issues 

Pros and Cons