What is Gray Market?
The gray market refers to the sale of official, genuine goods through unofficial or unauthorised distribution channels. For example, if a reseller in one country buys a product and then sells it in another country where they are not authorised to do so (and often at a lower price), that's a gray market sale. This can create major problems for a vendor, as it can lead to price erosion, damage brand reputation, and create conflict with their authorized partners. Companies often put strict rules in their partner agreements to prevent gray market activity.