Notes

Gray Market Explained

We have been aware of the extensive distribution of mobile phone accessories in the market since the sales of mobile phones and gadgets have skyrocketed. We are also familiar with the wide variety of devices and brands to choose from. However, some of these devices are not even in the local market. Sometimes, to get your hands on any of these accessories, your options are limited through eBay, Amazon and the gray market.

With the eCommerce growing, it is not impossible to acquire mobile phone accessories even when it is not available in your own locality. For instance, the Ministry of Communications and Information Technology has not authorized anyone to sell Apple products in Jakarta, Indonesia yet, a lot of citizens have the latest version of iPhone. It does not mean that these individuals have acquired the devices fraudulently; they have just either purchased it online or through the gray market.

Let us clear some basic things first. Gray market is not an illegal trade compared to black or fly-by-night markets which involves scams and fake goods. The products in this kind of business are officially legit, although not authorized by the main manufacturer. These are also usually offered in lower prices typically paid overseas.

The Peterson Group is an example of distributors of gray market. This company is recognized by the Taiwanese government, operating legally and distributing mobile phone accessories and laptop peripherals to as far as Jakarta and other countries in the Asia-Pacific. There is also an open trade recognized by the other countries’ governments as TPG is given permission to deliver their products to retail customers as approved by the Customs.

Gray markets deal with fair trade, having to deliver with quality packaging and assured insurance. The chance and risk of damage is very small. You can expect an immediate day-after delivery although some goods can arrive after two to three days, depending on the proximity. Moreover, each good being delivered through gray market is being inspected by the customs which can also cause the delay but assures the quality and legitimacy of the product.

For faulty devices, distributors usually have a warranty policy and corresponding contact information. It should also be stipulated in the terms and condition on what regulations to follow when returning a faulty accessory. The suppliers should have a customer service hotline to deal with such circumstances.

Buying gray market technologies may not be for everyone as there may also be a lot of risks involved but knowing the facts and basic information about it can help you review your options.