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Larry S
··Color Commentator for the Hyperbole.Every consumer category, even food, has secondary distribution for overstock items. It’s called Capitalism.
Where Do Grey Market Dealers Get Omega Watches?
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Waltesefalcon
·Then this grey market hurts the manufacturer because the brand perception and market value of its products suffer!
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gatorcpa
··ΩF InvestiGatorThen this grey market hurts the manufacturer because the brand perception and market value of its products suffer!
However, most luxury goods manufacturers realize that not every product they make is going to be a sales winner. While selling into the grey market is technically against an AD's franchise agreement with Omega, I suspect that Omega tolerates this practice to allow their dealers the ability to generate enough cash to be able to stock the watches that Omega wants to promote.
Some years ago, Omega had brought a case against Costco, who was buying watches from grey market wholesalers and selling them retail at a substantial discount at their stores and online. It went all the way to the Supreme Court, which ended up split 4-4 (with a recusal). The case went back to a lower court, which ultimately sided with Costco outside of the Ninth Circuit (mostly California).
BTW, you can still buy some Omega models at Costco. But they are usually not the most desirable watches Omega makes.
gatorcpa
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josiahg52
·I got both of my new watches from an AD cheaper than any grey market I looked at, and they actually had the watch in the store. 20% without any negotiation required.
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Speed2Sea
·I believe the claims of the OP are closer to the truth for counterfeit watches, not genuine gray market watches.
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bsowers34
·I can understand this sentiment, especially if one has paid full MSRP for a particular model to an AD or Omega Boutique to be "the first on their block" to own one.
However, most luxury goods manufacturers realize that not every product they make is going to be a sales winner. While selling into the grey market is technically against an AD's franchise agreement with Omega, I suspect that Omega tolerates this practice to allow their dealers the ability to generate enough cash to be able to stock the watches that Omega wants to promote.
Some years ago, Omega had brought a case against Costco, who was buying watches from grey market wholesalers and selling them retail at a substantial discount at their stores and online. It went all the way to the Supreme Court, which ended up split 4-4 (with a recusal). The case went back to a lower court, which ultimately sided with Costco outside of the Ninth Circuit (mostly California).
BTW, you can still buy some Omega models at Costco. But they are usually not the most desirable watches Omega makes.
gatorcpa
That's why I had no problem with msrp for my white speedy, fois and Snoopy 50. But it's crazy to pay retail for the more "common" ones.
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