What is a gray market? According to Merriam-Webster
online dictionary, “gray market is a market employing irregular but not illegal
methods; especially a market that legally circumvents authorized channels of
distribution to sell goods at prices lower than those intended by the
manufacturer (http://www.merriam-webster.com/dictionary/gray+market).”
Which means goods will be distributed by
unauthorized channels to meet the market needs.
In such a market, customers may not get the same warranties and product
liabilities as those from the official distribution channels. Manufacturers may cost more because they lost
the adequate profit share to the gray market. In addition, goods that
distributed by the unauthorized channels might actually damaging the
manufacturers’ reputations.
In the new gray market environment today, lower price
still is the main factor that allures retailers and some customers. However, it
is not always the case. In the article “‘Gray Market’ iPad Mini Prices Triple
in Russia”, because of the delay of releasing the iPad mini in Russia made the
gray market price much higher than the official price. I think the same phenomenon happens in Apple’s
Asian market as well. For Apple, they
should have the same releasing day for their new products worldwide and
manufacture enough to satisfy their global market.
In my opinion, governments should get involved in
managing the gray marketing. By
implementing the laws, eliminating smuggling, and adjust their tarries to make
goods distributed smoothly though their official distribution channels.
After reading this I am still a bit confused about what a grey market really is. I feel as if the language being used is targeted towards those who already have an understanding of what you are talking about. However, I don't know anything about grey marketing and as a result this blog is hard to follow. Is there a simpilar definition of grey marketing? How does grey marketing relate to your field of study at SFSU?
ReplyDeleteI remembering watching news about people trying to buy Apple products from America and bring it back to the Mainland to sell and make a profit. Does the news I see on TV relalte to what you are talking about? Are grey markets the same as underground market or black market?
ReplyDeleteWhile reading this post I immediately thought of eBay. On eBay you can find items for cheap or overpriced. I was recently looking for an adapter for my iPhone charger and I found a few for $2-10 when they normally retail for $30+. This causes a problem to retailers and manufacturers because it takes away their business and when fakes are being sold it can ruin the reputation of the manufacturers. On the other hand there are those who sell items for a high sum. When Jordan's are released they retail for about $130-190, but they are resold for $300 and up. It takes away from the profit that the manufacturer and retail could profit but their hands are tied because there are laws to restrict them from selling it for a higher price and here are these other people selling them for double their value in the grey market. Check this out for a better understanding of the grey market. http://en.wikipedia.org/wiki/Grey_market
ReplyDeleteI think the government was intend to get involve. It is too wide to control and cost a whole lot of money and people to watch. Plus, I think some can get away from bribery. Like the black market, it is too wide.
ReplyDelete