International Gray Markets

Reference: Prince, Melvin and Davies, Mark. “Seeing Red Over International Gray Markets”, Business Horizons, March-April 2000. pp. 71-74. Summary/Description: International gray markets pose a real threat to manufacturers and their licensed retailers and they also represent a legit market that is just trying to get the end consumer the best quality product at the lowest price. It’s all a matter of who you’re talking to. An international gray market is an unlicensed or …showed first 75 words of 849 total…

…showed last 75 words of 849 total…gray markets can be of two different types, proactive and reactive. Manufacturers can refuse to service products from gray markets and disenfranchise channel offenders. They can also be proactive and try to establish legal procedures and regulations covering distribution and product quality standards. One study though concluded that gray markets actually increase the profits of manufacturers and authorized dealers. In the end though it may be very difficult to police the practices of gray markets.