What is the "grey market"

[David Boyce]

The term "grey" need not apply to second-hand goods.

It's a general term used to apply to imported goods purchsed wholesale via a 
route outher than the manufacturer's approved distribution channels.

Large retailers can save money by, among other things, taking advantage in 
currency exchange rate fluctuations to buy goods in a particular country at 
an advantageous price and exhange rate, and then import them for retail. 
Thus, taking for example, a Nikon camera sold in the UK.  There is an 
"official" route, where Nikon UK will import the cameras into the UK from 
where they are made, and be responsible for the selling-on to wholeslaers 
and retailers.  Nikon UK will guarantee cameras they have brought into the 
country and whose distribution they are responsible for..  But there is 
nothing legally to stop a wholesaler or retailer sourcing a bulk supply for 
themselves in some other country, and buying and importing for themselves. 
Nikon UK will not Guarantee those cameras, however.

Manufacturers tend not to be too keen on the practice of "grey imports", as 
they see it as devaluing their brand, and leading to possible customer 
disappointment, when the national distributor will not have any interest in 
the gray imported item, as regards warranties or servicing.

In photography, before digital came in, great savings could be made in film 
costs, via compaines specialising in grey imports of film.

Best regards,

David.