{"id":36591,"date":"2015-07-03T14:41:37","date_gmt":"2015-07-03T14:41:37","guid":{"rendered":"http:\/\/vskills.in\/certification\/blog\/?p=36591"},"modified":"2024-04-03T13:18:50","modified_gmt":"2024-04-03T07:48:50","slug":"the-economics-of-grey-markets","status":"publish","type":"post","link":"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/","title":{"rendered":"The Economics Of Grey Markets"},"content":{"rendered":"<p style=\"text-align: center\"><a ref=\"magnificPopup\" href=\"http:\/\/vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/07\/The-Economics-Of-Grey-Markets.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-36609\" src=\"http:\/\/vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/07\/The-Economics-Of-Grey-Markets.jpg\" alt=\"The Economics Of Grey Markets\" width=\"177\" height=\"181\" srcset=\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/07\/The-Economics-Of-Grey-Markets.jpg 177w, https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/07\/The-Economics-Of-Grey-Markets-55x55.jpg 55w\" sizes=\"auto, (max-width: 177px) 100vw, 177px\" \/><\/a><\/p>\n<p>Grey Markets also called parallel imports refers to technically the trade of commodities (non-counterfeit) through legal distribution channels though unauthorized, unsanctioned and not anticipated by the original manufacturer. However, these goods may be used, mislabeled or completely counterfeited. These are often electronics bought from a country where it is widely available at cheap rates (often retail-sometimes wholesale) such as China and are legally imported into the target country where it is sold at higher prices.<\/p>\n<p>In 1984, 10% of the computer sales by IBM were through grey markets. The \u2018buyers\u2019 bought these computers in bulk, receiving a substantial discount and then re-sold them to unlicensed dealers. An example of the functioning of a grey economy can be described as- dealers import and re-sell Apple products in South Korea where Apple doesn\u2019t presently have outlets. The trading of crude oil and IPO are also good examples.<\/p>\n<p>There are two main types of Grey Markets:-<\/p>\n<ul>\n<li>For goods that are not available\/expensive in the home country<\/li>\n<li>For goods that are not yet legally traded in the home country\u2019s market.<\/li>\n<\/ul>\n<p>They arise due to multiple reasons some of which are- weak links in the supply chain management, suppliers pricing policies, international exchange rate fluctuations, high tax rates etc. Branded product markets with their high tax burden find it difficult to compete with the smuggled products.<\/p>\n<p>Presently, India is filled with grey market products right from mobile handsets to high end consumer durables. The grey market consumer goods are growing at rate of 25-30%. They account for over 50% of the domestic market of branded electronic products like digital cameras and gaming consoles. A new FICCI study shows that the loss to the manufacturing sector has increased by 44.4% (Rs. 72,969 crore to Rs. 1, 05,381 crore) from FY12 to FY14.<\/p>\n<p>There is a dire need to curb illicit markets as it hinders two of the country\u2019s main goals-<\/p>\n<ul>\n<li>Stimulating the country\u2019s manufacturing sector (Make in India)<\/li>\n<li>Checking the generation of black money<\/li>\n<\/ul>\n<p>The grey market not only weakens the economy in terms of violating intellectual property rights but also opposes research and development. This discourages investors, curtailing India\u2019s investment potential. India must take steps on stringent quality control, reinforcing its IPR regime and looking into taxation policies.<\/p>\n<p><a href=\"http:\/\/www.vskills.in\/certification\/certifications\">Click here for government certifications<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Grey Markets also called parallel imports refers to technically the trade of commodities (non-counterfeit) through legal distribution channels though unauthorized, unsanctioned and not anticipated by the original manufacturer. However, these goods may be used, mislabeled or completely counterfeited. These are often electronics bought from a country where it is widely available at cheap rates (often&#8230;<\/p>\n","protected":false},"author":1369,"featured_media":36609,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[4227],"tags":[1568,1037,4968],"class_list":["post-36591","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economics","tag-economics","tag-finance","tag-grey-markets"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Economics Of Grey Markets - Vskills Blog<\/title>\n<meta name=\"description\" content=\"Grey Economics, How, Why, Where! Apply for a vskills certification now. Hurry up!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Economics Of Grey Markets - Vskills Blog\" \/>\n<meta property=\"og:description\" content=\"Grey Economics, How, Why, Where! Apply for a vskills certification now. Hurry up!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/\" \/>\n<meta property=\"og:site_name\" content=\"Vskills Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/vskills.in\" \/>\n<meta property=\"article:published_time\" content=\"2015-07-03T14:41:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-03T07:48:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/07\/The-Economics-Of-Grey-Markets.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"177\" \/>\n\t<meta property=\"og:image:height\" content=\"181\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Elesha Rao\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Elesha Rao\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/\",\"url\":\"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/\",\"name\":\"The Economics Of Grey Markets - Vskills Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/07\/The-Economics-Of-Grey-Markets.jpg\",\"datePublished\":\"2015-07-03T14:41:37+00:00\",\"dateModified\":\"2024-04-03T07:48:50+00:00\",\"author\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/2f98dc45e8582aaebaec8323585ad9d1\"},\"description\":\"Grey Economics, How, Why, Where! Apply for a vskills certification now. Hurry up!\",\"breadcrumb\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/#primaryimage\",\"url\":\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/07\/The-Economics-Of-Grey-Markets.jpg\",\"contentUrl\":\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/07\/The-Economics-Of-Grey-Markets.jpg\",\"width\":177,\"height\":181},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.vskills.in\/certification\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The Economics Of Grey Markets\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#website\",\"url\":\"https:\/\/www.vskills.in\/certification\/blog\/\",\"name\":\"Vskills Blog\",\"description\":\"Vskills - A Initiative in Assessment to Enhance Employability\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.vskills.in\/certification\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/2f98dc45e8582aaebaec8323585ad9d1\",\"name\":\"Elesha Rao\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/c9ac27137112dd270df53dcc3f5308724b76c24022756fb712b9c3c1d8431a22?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/c9ac27137112dd270df53dcc3f5308724b76c24022756fb712b9c3c1d8431a22?s=96&d=mm&r=g\",\"caption\":\"Elesha Rao\"},\"description\":\"A second year student of LSR pursuing Economics Hons.\",\"url\":\"https:\/\/www.vskills.in\/certification\/blog\/author\/elesha-rao\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Economics Of Grey Markets - Vskills Blog","description":"Grey Economics, How, Why, Where! Apply for a vskills certification now. Hurry up!","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/","og_locale":"en_US","og_type":"article","og_title":"The Economics Of Grey Markets - Vskills Blog","og_description":"Grey Economics, How, Why, Where! Apply for a vskills certification now. Hurry up!","og_url":"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/","og_site_name":"Vskills Blog","article_publisher":"https:\/\/www.facebook.com\/vskills.in","article_published_time":"2015-07-03T14:41:37+00:00","article_modified_time":"2024-04-03T07:48:50+00:00","og_image":[{"width":177,"height":181,"url":"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/07\/The-Economics-Of-Grey-Markets.jpg","type":"image\/jpeg"}],"author":"Elesha Rao","twitter_misc":{"Written by":"Elesha Rao","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/","url":"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/","name":"The Economics Of Grey Markets - Vskills Blog","isPartOf":{"@id":"https:\/\/www.vskills.in\/certification\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/#primaryimage"},"image":{"@id":"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/#primaryimage"},"thumbnailUrl":"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/07\/The-Economics-Of-Grey-Markets.jpg","datePublished":"2015-07-03T14:41:37+00:00","dateModified":"2024-04-03T07:48:50+00:00","author":{"@id":"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/2f98dc45e8582aaebaec8323585ad9d1"},"description":"Grey Economics, How, Why, Where! Apply for a vskills certification now. Hurry up!","breadcrumb":{"@id":"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/#primaryimage","url":"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/07\/The-Economics-Of-Grey-Markets.jpg","contentUrl":"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/07\/The-Economics-Of-Grey-Markets.jpg","width":177,"height":181},{"@type":"BreadcrumbList","@id":"https:\/\/www.vskills.in\/certification\/blog\/the-economics-of-grey-markets\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.vskills.in\/certification\/blog\/"},{"@type":"ListItem","position":2,"name":"The Economics Of Grey Markets"}]},{"@type":"WebSite","@id":"https:\/\/www.vskills.in\/certification\/blog\/#website","url":"https:\/\/www.vskills.in\/certification\/blog\/","name":"Vskills Blog","description":"Vskills - A Initiative in Assessment to Enhance Employability","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.vskills.in\/certification\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/2f98dc45e8582aaebaec8323585ad9d1","name":"Elesha Rao","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/c9ac27137112dd270df53dcc3f5308724b76c24022756fb712b9c3c1d8431a22?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c9ac27137112dd270df53dcc3f5308724b76c24022756fb712b9c3c1d8431a22?s=96&d=mm&r=g","caption":"Elesha Rao"},"description":"A second year student of LSR pursuing Economics Hons.","url":"https:\/\/www.vskills.in\/certification\/blog\/author\/elesha-rao\/"}]}},"_links":{"self":[{"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/posts\/36591","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/users\/1369"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/comments?post=36591"}],"version-history":[{"count":5,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/posts\/36591\/revisions"}],"predecessor-version":[{"id":72759,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/posts\/36591\/revisions\/72759"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/media\/36609"}],"wp:attachment":[{"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/media?parent=36591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/categories?post=36591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/tags?post=36591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}