What is gray market?

 

The term gray market means the law legal sales of products sold outside official channels of distribution, that don’t have  closed any business relationship with the original manufacturer. This sale occurs most often in situations, when the price of the same goods in one country is higher than price in another. Grey market dealers cheaply acquire goods, which they sell in another country below cost, but still in the profitable price for them.

The problem of the grey economy

In regard of the nature and prevalence of the gray market it is very difficult to monitor the amount of goods that are sold to clients outside official distribution channels. Grey economy, under which the gray market falls, is not officially permitted, but it also cant be consider as illegal because its definition is not clearly butted and bounded by law. Within the grey economy is most often spoken of infrigement of ethical and moral standards. Traders in the gray market just follow the old rule: anything that is not forbidden is allowed. Confirme system was developed as a possible solution for combat a gray market products based on the creation of databases directly by manufacturers or authorized dealers of products.

In each sector

The gray market products are augmented almost in every sector in which the products of high demand. Their sales range from the automotive industry through the various electronic accessories and components. When purchasing a product from the gray market, the consumer mostly receives the goods at a lower price, but on the other hand, it is deprived of the necessary warranty claim and support. Service of unauthorized product can be not just difficult but the price could be several times higher than its original price

Stay informed!

In this section you can find the most important information about consumer protection from buying low-quality and non-genuine products, as well as products that originate out of the official distribution channels and gray market products. Through regularly updated posts we will also provide information about companies whose products could be found in the Confirme system.