COMMON SENSE SIMPLIFIED: BETWEEN THE BLACK AND THE WHITE

COMMON SENSE SIMPLIFIED: BETWEEN THE BLACK AND THE WHITE:

The products sold at grey markets are often illegally imported from places like China, Japan, Singapore, Hong Kong and Nepal; with huge margins which are so high that even after visiting those places and bringing in the products, the retailers are still left with decent profits! The premium watches, gaming consoles and digital cameras are the main product categories that flood the grey markets. The market share for premium watches through grey markets are almost 50 per cent of total market size of Rs.1,000 crores, in console gaming it is 30 per cent of the full size Rs.400 crore market, and 25 per cent of Rs.2,000 crore digital camera market. The excessively high tax and import duties have a cascading effect on the prices creating differentials between authorised and grey markets.

Read more:  http://prasoonsmajumdar.blogspot.in/2012/07/between-black-and-white.html