Disruption in the Fashion Industry: Gray Market Digital Sales Emerge

©iStock/Grosescu Alberto Mihai

Want to be a player in the multibillion-dollar luxury “gray” market, a fast-growing sales sector that has historically operated out of sight of most Western consumers?  Think of is as a secretly discounted modern luxury digital market. 

Try these on for size:  Baltini (Italy), Italist (USA), FarFetch (London), and Cettire (Australia).

Gray market sales – or what used to be known as parallel importing – have been ending up in millions of digital shopping baskets. Read on to learn more.

The Fashion Law is a website exploring the legal and commercial challenges facing the gray market industry.

Gray Market: Exporting BMWs from the US to China

iStock/Thinkstock

As Quartz indicates in the headline, this may be illegal:

How to export BMWs from the US to China for fun and profit (Note:  this is possibly illegal).

Operating in a gray market is a form of international trade that still exists and is oftentimes referred to as a “parallel market.” If you want to get a better handle on what parallel importing is, I provide an example of parallel importing and touch on the lawfulness of parallel importations here.

Learn more about how people are making money off illicitly trading automobiles:

A Profitable Trade:  Illicitly Shipping BMWs to China (WSJ.com)

Before you attempt to export or import cars, check with the manufacturer to see if they have a "no export" provision in their policy and also check the agreement with the car dealership to make sure they don't have a clause within it stating "you agree not to export this car at all or within a specific period of time."

Are You Involved in Gray Market Activities Internationally?

Photo courtesy ©2013 Laurel Delaney.  All rights reserved.  "Who Nu cookies"  -- one of my favorites!

What is a gray market activity? It's simple: It's an unofficial but legal import/export activity involving genuine products by intermediaries other than the authorized distributor or agent. From the importer's side, it's known as parallel importing.

Read:  What Is Parallel Importing?