Gray import
Also called: parallel imports or gray market
Gray imports involve products from a particular manufacturer being imported from another country through unofficial channels. This bypasses the official importers or distributors. As a result, the retailer is not bound by the conditions often imposed by agreements between manufacturers and their official importers and the assortment that may vary from country to country.
Although this form of distribution is not authorized by manufacturers, unlike the black market, it is not illegal. In fact, from a competition perspective, it is undesirable for manufacturers to be able to control the entire distribution chain.
Sometimes manufacturers try to curb the gray market through claims that invoke trademark rights or their intellectual property. The motivation behind this is that gray imports could damage reputation and put pressure on prices in authorized sales channels.
Advantages and disadvantages of gray imports
Stores and online stores that use gray imports generally choose this when products can be purchased cheaper abroad. By purchasing products cheaper, they can be offered below the recommended retail price while still making sufficient margin.
Models sourced via gray import can sometimes differ just a bit from the regular supply in the country of sale. Often the item number is the main difference, but there may also be practical differences such as available languages within software interfaces. Another disadvantage of gray imports for consumers is that support often cannot be provided through local official support channels.
Gray import is especially common with cars and electronics such as white goods and televisions.
