On the other hand, if the same person sells fake watches under the same brand name, then that would be included in a black market. Thus, most often the distribution channel used is unauthorized or unofficial in the grey market.įor example – an unauthorized dealer, who owns a store of a brand of watch, would be considered as a part of grey market. It typically involves those services which are not registered legally in order to save taxes from the government. The goods of grey market are not like counterfeit goods of black market. However, they lack the proper authorization or controlling factors.Ī simple example of a grey market is the one which is developed by people who trade in goods at lower rates than the official rates. It generally deals with the genuine commodities. Grey market lies somewhere between the black and white markets. Black market is closely related to brand abuse. For example, weapons and drugs are two most commonly traded black market items. Therefore, these goods or services are also traded in an illegal manner. It deals with the trade of stolen items, lawfully banned or counterfeit items.

These transactions are generally made on fake or counterfeit products in a black market. Black Market and Grey market are different from each other. Black market is all about trading in items and services which are considered to be illegal by laws. Grey market usually deals with the genuine goods that are sold and bought through the unauthorized channel of distribution.īlack Market and Grey Market are related to the illegal facet of the market. Key Difference: Black market deals with the banned, counterfeit or stolen items which are sold in the market illegally.

White black market