A Presentation On Gray Market

BY- NIHAL . D . PATEL

ROLL NO-27
 GRAY MARKET
• A gray market refers to a place where goods or securities can be bought
or sold in a quasi-legal way.
• Grey market refers to products that are sold legally , but outside of the
brand’s permission. These products can harm relationships with
distributors and damage product reputation.
• Common gray market goods include cameras ,cars, watches and even
pharmaceuticals.
 TYPES OF GRAY MARKET
 ORIGINAL MARKET
The legal products are sold through unauthorized distribution channels. This is where
new products are sold. Mostly the market deals in new and original products.
GREEN MARKET
It is difficult to differentiate between the new and the used goods in the market. The
market where used goods are sold is also called the Green Market.
DARK MARKET
The dark market deals in secretive and unregulated trading of commodities such as
crude oil.
 CAUSES OF GRAY MARKET

• Low Price Competition

•  Price Difference in Different Countries
• Blocked Distribution
• Sales Targets
• High Product Cost
 EFFECT OF GRAY MARKET IN
BUSINESS
• Affects Profitability
• Brand Reputation
• Cannot Guarantee The Product
• Multiple Market Prices
• Effects The Government
 ADVANTAGES & DISADVANTAGES
OF GRAY MARKET
ADVANTAGES:-
• Products are available at a cost lower than the normal market price.
• Products that are not available in the market in a specific country are also made available in
the market
DISADVANTAGES:-
• The goods available in the grey market do not come with a guarantee or a warranty from the
company.
• The customer cannot differentiate between the original and the duplicate product in a grey
market.
• Grey goods do not have an after-sales service available for the products.