gray markets
Legal but unauthorized
Gray markets are channels for selling genuine goods outside authorized distribution networks.
A camera imported directly from Japan and sold in the US without the manufacturer's blessing operates in the gray market—not counterfeit, but not officially sanctioned either.
The term extends to any commerce in a legal but unofficial zone: gray market pharmaceuticals from Canada, gray market concert tickets.
Unlike black markets, nothing illegal is being sold, just sold through unauthorized means.
Bulk goods merchants
- resellersThose who retail others' goods
- intermediariesAgents linking separate parties
- supply chainProduct delivery infrastructure
- retailersBusinesses selling to public
importers · distributors · third-party sellers · middlemen · brokers · eBay · scalpers · flippers
Guarding corporate identity assets
- warranty voidPromise of repair invalidated
- official channelsAuthorized pathways for requests
- territorial rightsLawful claim to land
- aftermarketTrade in replacement parts
OEM · brand reputation · consumer trust · quality assurance · premium pricing · luxury goods · electronics · pharmaceuticals
Exploiting price discrepancies
- surplus stockInventory exceeding current demand
- overstockSurplus goods beyond demand
- cross-border tradeExchange of goods between nations
- price discriminationCharging varied amounts per buyer
Official rules governing conduct
- intellectual propertyLegal rights over inventions
- enforcementCompelling compliance with rules
- jurisdictionLegal authority's scope
- loopholeExploitable gap in rules
compliance · trademark · infringement · licensing · legitimate · prosecution · smuggling · customs
Buyer's range of alternatives
- price competitionRivalry through lower costs
- undercuttingCharging less than rivals
- competitive advantageFactor enabling market outperformance
- price warsCompeting through lower costs
wholesalers
Bulk goods merchants
- resellersThose who retail others' goods
- intermediariesAgents linking separate parties
- supply chainProduct delivery infrastructure
retailers · importers · distributors · third-party sellers · middlemen · brokers · eBay · scalpers · flippers · fulfillment
brand protection
Guarding corporate identity assets
- warranty voidPromise of repair invalidated
- official channelsAuthorized pathways for requests
- territorial rightsLawful claim to land
aftermarket · OEM · brand reputation · consumer trust · quality assurance · premium pricing · luxury goods · electronics · pharmaceuticals
arbitrage
Exploiting price discrepancies
- surplus stockInventory exceeding current demand
- overstockSurplus goods beyond demand
- cross-border tradeExchange of goods between nations
price discrimination · currency fluctuations · regional pricing
regulation
Official rules governing conduct
- intellectual propertyLegal rights over inventions
- enforcementCompelling compliance with rules
- jurisdictionLegal authority's scope
loophole · compliance · trademark · infringement · licensing · legitimate · prosecution · smuggling · customs · import restrictions
consumer choice
Buyer's range of alternatives
- price competitionRivalry through lower costs
- undercuttingCharging less than rivals
- competitive advantageFactor enabling market outperformance
- libertarianismlibertarianism, anarcho-capitalism, classical liberalism, limited government, individual liberty