What are Grey Markets and How Do They Function?
What is Grey Market?
A grey market is a scenario wherein products are sold outside of the ambit of the authorized distribution channels specified by the product manufacturer or by the business that owns the product IP.
It is a nightmarish scenario for the product manufacturer as it disturbs the fundamental ecosystem of the product and complicates things. Let us try to understand this market and how it fundamentally affects the business of the OEMs who manufacture and distribute the product.
It is important to understand that in the grey market, legal sales of authentic goods happen, and so the authenticity of the goods are not compromised in any way. However, this sale happens at an entity or marketplace which is not approved by the original manufacturer. Let us look at some common forms that grey marketing takes.
Unavailability of goods
If the goods manufactured by a producer is not available in a country (separate from the country of origin), then it is common practice for sellers or e-commerce websites to import the product and sell it on their own platforms for good margins. What this does is complicate the delivery and warranty service for the original producer, and harms the end customer.
It is very common to see products that are priced higher in one country than it is in another, due to various reasons such as higher tax rates, governmental duties, profiteering on the part of the producer and so forth. This opens up avenues for grey marketers to come into the market, importing the same product via their own means of transportation and selling the same, authentic product at a cheaper cost on their own platform, than what it is available at the official producer’s e-commerce or offline store. This allows for the grey marketers to make a hefty profit on the same product, because of the increased business volume,
Rules and Regulations
Restrictions put in place by a governmental agency on the opening and functioning of a large outlet by the original producer do not apply to smaller establishments or to e-commerce platforms, thus giving them the advantage in dealing with original producer based products on a grey marketing basis. This gives them the impetus to go ahead with grey marketing.
Convenient distribution channels
Sometimes original goods which are distributed by product manufacturers, are not available at local locations and it becomes difficult for consumers to get them delivered. Grey marketers exploit this situation by opening up unauthorized distribution channels which get these products delivered to the consumers easily.
For a producer a grey market causes a conundrum because they would like to maintain the quality and reliability of their own distribution network. Professional brand protection services can help producers to gain control of the distribution network by weeding out bad actors from the chain.
Grey markets thrive because the official producer does not properly utilize the means available at their disposal to deal with such marketing tactics. Using a proper service to get rid of such markets will help strengthen the distribution network and increase profits for the original manufacturers.
Losing your Instagram pics due to accidental deletion or careless usage of the app can be very frustrating. Especially if it happens to be your favorite photo with the most likes and comments. But you don’t have to worry because there are many ways through which you can recover deleted Instagram photos with ease. In […]
Stop Searching on Google what to eat, watch or drink. Start searching with Friendspire. Everyone loves foods, drinks, movies, TV shows, but are you, everyone? You’re not! You don’t just love these things you want to watch, eat, drink, read and listen to the best, right? So, what do you do to accomplish this? Like […]
Most email tracking software only tells you whether an email is opened or not. Whereas they should tell you why a person opened your email and how ready he or she is to become your customer. In the marketing funnel, emails play a king-size role. Therefore, you need an email tracker that answers — when […]
Video games are only for boys! Do you also think that? Well, no, digital games are for everyone — whether you want to kill monsters or dress up a Barbie. Today, girls can have all the gaming fun; they can cook, dress up, do makeup, and so much more. If you want to relive your […]
What do you eat? How do you eat? When do you eat? — directly reflects on how you feel or look. Today, planning your diet isn’t a cosmetic luxury; it is a way to lead a healthy life. But, it is easier to say than to do. When you have your favorite sugar-loaded dessert calling […]
Mobile Learning combined with the internet is becoming increasingly popular nowadays because it is one of the most successful programs developed by technical inventors in the times of COVID-19. People are more attracted to multimedia platforms than they were to the traditional learning system. In addition to this, e-learning offers much more advanced learning than […]
The long-awaited, iOS 14.5 is officially released for all users and this update comes with a vast list of features. The most prominent among them are: Apple Watch iPhone unlock. AirTags App Tracking Over 200 new emoji New Siri Voices and more. Here’s what you need to do to download and install iOS 14.5 and […]
Are you a hardcore reader? Then, you definitely want to use every minute of the day to unveil a new story. With audiobook apps, you can get that opportunity. Whether you are driving, walking, or working out in a gym, your audiobook app can supply unlimited stories to you. For our busy readers, the TC […]
Digital marketing utilizes the internet, cell phones, web-based media, web indexes, and various channels to reach out to their customers. Some advertising experts consider digital marketing to be a completely new venture that requires a different method of moving customers and better ways to see how customers move forward with traditional promotions. Relativity with Digital […]
Instagram marketing is how different brands mainly use Instagram to connect with their target audiences and market their products. This method has mainly gained popularity as an exciting method for brands to showcase their culture, engage with their customers, and show off their products in a new light. Steps to be used in creating the […]
Digital marketing, online marketing, internet advertising, whatever you call it, marketing your agency online is a big deal these days. Digital Marketing This is a very vast term. Marketing done using technology and digitization is digital marketing. This is a form of direct marketing that establishes a link between sellers and customers. This is done through different […]
Marketing can be defined as actively promoting the services and products a business has to offer to its customers. This is done by keeping in mind market supply and customer demand. Marketing is now not looked at as just a door to door to sales. It is much more than that. Marketing is now an […]
Nowadays, with so many activities to perform on the internet like streaming movies, downloading files, and working from home, having an internet plan with unlimited data has become crucial for almost every household. However, finding an internet provider that offers the best internet service along with unlimited data is not an easy task. Therefore, to […]
The train journey is a wholesome experience. Getting to know different places, meeting new people, lazy talks, speed rush, and so much more. Now, imagine what if you get all the train experience while sitting at your home? Cool, right? By playing train games on your iOS gadgets, you can ride, drive or perform stunts […]
The simulation gaming genre is hard to ignore in 2021. A game that can lift the barrier between real life and virtual life. These games can stimulate your senses and let you live your gaming fantasies. Simulator games are a perfect combination of fun and technology that you can’t afford to miss out on. Today, […]