The Gray Market Explained-How Discounts Can Be Found On Luxury Watches

What Is Gray Market

A gray market or parallel market is the trade of goods through legal distribution channels that were not originally intended, manufacturer.

Grey market goods are legal, non-counterfeit goods sold outside normal distribution channels by entities which may not have any relationship with the producer of the goods. This form of parallel import frequently occurs when the price of an item is significantly higher in one country than another.

This commonly takes place with electronic equipment such as cameras, electrical goods, and watches. Entrepreneurs buy the product where it is available more cheaply, often at retail but sometimes at wholesale, and import it legally to the target market.

They then sell at a higher price but still lower than normal market price to give discounted prices on genuine and legal products.

Due to the nature of gray markets, it is difficult or impossible to track the precise numbers of gray market sales.

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carl scutt
carl scutt
Carl's the founder and editor of His background's in Technology and Internet Marketing. He currently lives in southern Spain. Learn more about him here, and connect with him on Twitter, Facebook, Google+.