![]() Simply put, this non-authorized side of retail provides the brand or retailer with the ability to clear excess or old inventory.Īnd the grey market has been around for many decades, long before the Internet. Grey market retailers are not part of that authorized retail chain, but they still manage to obtain and sell new timepieces. ![]() The distributor then sells the watches to authorized retailers, who sell the watches to retail clients. The classic authorized retail channel works this way: a brand manufactures watches, which are sold to official distributors throughout the world. It allows brands and retailers to clear slow-moving inventory when all − especially collectors − might be better served if brands tailored production more closely to consumer demand.Īs it pertains to the fine timepiece industry, the grey market is a store (online or brick and mortar) selling brand-new watches, but it is not part of a brand’s authorized retail channel. The grey market serves a purpose that, in my humble opinion, is detrimental to any brand involved and the industry as a whole. The truth is that the grey market exists because the brands themselves not only allow it to happen, but in many cases directly feed it. ![]() The following is a broad description of the grey market, how and why it exists, and what (if anything) could be done for a brand to eliminate – or at least minimize – its presence.Īnd let me be clear from the get-go: this is not a rebuke of online stores, grey market dealers, or the many people working on that side of the industry. Most recently, my post A Cautionary Tale on Buying New Watches Online was met with quite a few comments, quite possibly leaving more questions than answers. Friends, colleagues, and clients have posed many questions about the grey market for fine timepieces over the years.
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