Brands that carefully control their distribution still may wind up in the
grey market, through which wholesalers or retailers sell products in countries or stores without official approval, often at prices that undercut those charged by authorised outlets.
Reportedly, Abercrombie & Fitch clothing and American Eagle Outfitters apparel are being sold through
e-tailers in India without permission. These aren't counterfeit products; they're genuine, but the manufacturers didn't sell to these shops and haven't given permission for the shops to carry their branded clothing.
Digital cameras and other
electronics are sometimes found in grey markets, priced at a discount but also without warranties or customer service support. Hot new
game consoles like the PlayStation Vita, for instance, are informally available in China through the grey market, even though they're not officially distributed in that country. Even
Cadbury chocolates have apparently been sold via the grey market before being officially introduced through authorised distributors in India.
Depending on each country's
legal system, brand owners may have a couple of alternatives for dealing with the situation, because the grey market is--pun intended--a grey area.
