Definition
Via wikipedia
A grey market or gray market is the trade of a commodity through distribution channels which, while legal, are unofficial, unauthorized, or unintended by the original manufacturer.
See this page for an instance.
Pros:
- Cheaper prices. Costco is being sued by Omega because of this.
- Online sales: many Swiss brands won't sell online; grey marketers fill this gap.
Cons:
- Warranty service is often not honored. A big gotcha.
- Watch may, in extreme cases, have the serial number ground off.