The grey market still represents a significant threat toluxury brands as we move through 2024. The trends shaping the market areoutlined in our new report, which you can obtain following the steps at thebottom of this post.

The channel represents some or all of the followingdepending on brands:

A suboptimal approach to margin optimization

Confusion as to which markets are performing the best

A divergence in the point of purchase and point of influence

An outcome of overly aggressive wholesale practices

An erosion in product trust whether through counterfeitproducts or consumers being educated that 30% off is the norm

A hijacking of your brand experience

While the growth of grey market channels has slowed, the growthsignificantly outpaces the performance of the brands themselves, signaling apotential increase in usage or new consumer acquisition of the channel.

And why not? If you can save even 10% on a 20,000 RMB purchase, the consensus is, that this is just a smart move.

Our new report – The Daigou Report 2024 – The shifting sandsof cross-border eCommerce in China for luxury and beyond outlines the current situation, what’s to come, and lookingbeyond luxury fashion.

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