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  1. #1

    Question Grey market or "legit" market?

    I had the opportunity to visit a wholesale perfume store. They had some new formula 100 ml bottles of Chanel No. 19 EDP for about $75.00, unboxed. I looked at the bottles (they were behind the counter) and they looked legit. (I have other Chanel scents.)

    Could these be grey market offerings? Thank you for any advice or comments.
    Last edited by Primrose; 15th March 2010 at 08:17 PM.
    "No sweet perfume ever tortured me more than this." Desert Rose by Sting and Cheb Mami, Album 1999.

  2. #2

    Default Re: Grey market or "legit" market?

    Isn't grey market still legit? Or have I misunderstood either the question, or what grey market is?

  3. #3

    Default Re: Grey market or "legit" market?

    I think the "grey market" is the quasi-legit offerings of real, genuine products--not fakes or knock-offs. This simply means the distriubition route might not be the original one, such as intended for a foreign market. Someone please help in clarifying this definition.

    I am particularly interested in the unboxed items, as the items appear to be the real thing.
    Last edited by Primrose; 15th March 2010 at 09:51 PM.
    "No sweet perfume ever tortured me more than this." Desert Rose by Sting and Cheb Mami, Album 1999.

  4. #4

    Default Re: Grey market or "legit" market?

    Primrose, that's pretty much spot on. To elaborate, grey market products are the same as their store bought counterparts but different markets have different selling prices. So if I'm Chanel I can sell a bottle of No. 19 to my U.S. distributor for $15 dollars but Chanel Zaire gets it for $10 to reflect the lower price the product commands in their area. Chanel Zaire, being no one's fool, realize that the U.S. distributor charges $30 per unit to retailers (department stores etc.) and sell their product to these same retailers for $25, a much better margin than the $15 dollars they got from their native retailers.
    The issue is that Chanel Zaire doesn't own the distribution rights (or various equivalents) to the U.S. market and are infringing on the rights of the legitimate company and exposing C.Z. to possible law suits and even product seizure by Customs when their product makes it to the country. The product isn't illegal, hence not black market, but the retailer could be sued by the legitimate distributor for selling the unauthorized version.

    Grey market products are extremely common; CVS pharmacies (a large U.S. pharmacy chain) was recently sued by a Davidoff distributor for selling grey market Cool Water after an inspection team's examination of 33,369 units in CVS's possesion determined that 16,600 (!) were gray market and 836 were counterfeits.

  5. #5

    Default Re: Grey market or "legit" market?

    Quote Originally Posted by Zizanioides View Post
    ...after an inspection team's examination of 33,369 units in CVS's possesion determined that 16,600 (!) were gray market and 836 were counterfeits.
    Good post. But this last part...Wowsers ! Counterfeits at a chain pharmacy. Not cool.
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