Gray import

Also called: parallel imports or gray market

In gray imports, products of a particular manufacturer are 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 these forms of distribution are not authorized by manufacturers, unlike the black market, they are 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 web stores that use gray imports generally choose to do so if the products can be purchased cheaper abroad. Purchasing products more cheaply allows them to be offered below the recommended retail price while still making a sufficient margin.

Models purchased via gray import can sometimes differ just a little from the regular offerings 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 imports are especially common for cars and electronics such as white goods and televisions.