What is grey (gray) market?Is it safe to purchase a camera from grey (gray) market ? Are these damaged or discarded products which happen to have some manufacturing defect ?

” Grey market goods , by definition , are manufactured by the trademark owner or his authorized representative , and thus their features and quality are usually similar to their authorized counterpart . Gray market goods , however , are sold outside normal distribution channels . Because of variety of factors , including price and quantity differentials , exchange rates , free riding and perhaps even smuggling , it has become profitable to import goods outside the normal chain of distribution and sell them here .”

Grey market goods are Genuine goods . By definition “Genuine goods are goods produced or selected by the owner of a trademark to which the owner of that trademark affixes the trademark or in connection with which the owner of the trademark uses the trademark . The phrase simply serves to distinguish the goods so produced and marked from goods marked with a trademark by someone not authorized to use the mark” .

From the book “The legal and economic aspects of gray market goods” By Seth E. Lipner “

The first para should sum up the article , but people are little more skeptical when it comes to spending large amounts of money . So what is a Grey market Camera ?

A manufacturer works with a single importer who can sell and support their products in a given region. The importer usually has local dealers and distributors who resell the imported products; this is called a “distribution channel”. Founded in 1917 as Nippon Kogaku Kogyo Kabushikigaisha ( “Japan Optical Industries Corporation”), the company was renamed Nikon Corporation, after its cameras, in 1988. Nikon is one of the companies of the Mitsubishi Group . (Nikon is sole manufacturer of Nikkor imaging lenses , the Nikon F-series of 35 film SLR cameras , the Nikon D-series of digital SLR cameras , the Coolpix series of compact digital cameras, and the Nikon’s series of underwater film cameras) . Once the product is manufactured it is sold to various distributors across the world and then these companies are responsible for advertising , promotion , distribution , local safety regulations and certifications (FCC, CE, UL, etc.) and government requirements a manufacturer provides special packaging (manuals in the appropriate language, power cables designed for the local receptacle, etc.) and product engineering designed to meet local codes. Manufacturers also have service and support agreements with the authorized importer.Nikon India is authorized distributor for Nikon products in India as is Nikon USA in United states .

Nikon Inc. India pays shipping into the India, import duties and taxes, and provides service, support and downloads for these products. Nikon Inc. India ensures that the products they import are fully certified and safe for use in the Indian market. Once the product is up for sale at the distributor end , extra cost is added to basic cost for (marketing costs as well as the warranty costs) .while the basic cost stays same all across the globe but the later part various a lot . Sometimes a person takes advantage of the disparity in market prices , it is called arbitrage. An arbitrageur takes advantage of this disparity by buying a good in a country where it is significantly cheaper, then reselling it legally in India at cheaper price .The term “Grey market” refers to distribution; ie, you’re purchasing it outside the manufacturer’s distribution chain.Gray market is called gray since it’s not as bad as black market (illegal imports) but it’s not exactly white (authorized from the distributor ) either.

The drawback for the consumer for buying a camera from the gray market is that many distributors and service will not honor warranties on electronics purchased through it. Because the good is not purchased through “authorized” channels, they refuse to spend the money to honor the warranty. But All Nikon products come with a warranty by the manufacturer. The designated Nikon service center will always repair “in warranty” Nikon products and perform “out of warranty” repairs. If you own a Gray Market product it will need to be returned to the reseller or importer for service. Refer to your reseller or to the warranty cards included with the product for service contact information .

So , Is it safe to buy a camera from “gray market “. I ll say yes , it is as long as you are buying it from a reputed & respected Reseller . Some reputable resellers out there that sell Grey market, usually under the label of an import, B&H is a good example of this . So if you are getting a deal that is too good to be true , then make all the doubts clear , ask all the question u can think of and go for it . I brought my Nikon D70s Body , Nikon 18-70mm f/3.5-4.5 AF-S DX , Nikkor 70-300mm f/4-5.6D ED AF from a gray market Seller three years back and they are all working absolutely fine (me being a very rough user that is quite an achievement) .

To some up , Grey market camera is a Genuine camera without a defect of any sort only its sold through other than the traditional chain of distribution. There are some warranty issues involved most of times the Seller provides its own kind of warranty which is equally good . There is always a little risk factor and if you are willing to take it then the deal is yours .

Ref:

http://www.nikonrebates.com/Pages/FAQ.html#q6