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浅谈如何减少灰色市场 Mitigating against the risk of ‘grey markets’
Mitigating against the risk of ‘grey markets’
Introduction
Grey marketing is an abnormal business phenomenon that has seen growing obviously in the last decades. So far, there has been a great number of discussion focuses on grey market. In this paper, the author at first highlights the driving forces leading to grey market activities, and addresses the negative effects of grey products on original manufacturers, authorized distributors and customers. Then, four strategic actions will be pointed out, which international market could take to mitigate against the risk of grey market; i.e. these actions reflect four core elements in marketing: product, price, place and promotion.
Understanding Grey Market
The grey market, also know as the parallel market, is defined as: commodities are sold by unauthorized distributors; or products are sold by authorized resellers in violation of distribution agreement (e.g. selling to unauthorized resellers). In short, the parallel market is the trade of a commodity outside of original manufacture’s authorized channels (Bucklin, 1990; Sugden, 2009).For instance, if a cosmetic manufacture sells a lipstick both in China and in United Kingdom, and a third party purchases a large quantity of this lipsticks in China and imports it for resale in UK, this is considered as a grey market transaction. There are three types of grey markets: parallel importing (i.e. when the goods is priced lower in the domestic market than the export market. The grey marketer in the export market will parallel import directly from the domestic market rather than source from within their own country); re-importing (i.e. when the goods is priced cheaper in an export market than in domestic market, re-importation will happen.); and lateral importing (i.e. when there is a price difference between export markets, goods are sold from one country to another through unauthorized channels)(Isobel, 2006).Actually, the goods sell in grey market is branded genuine; however,
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