Hi, need to submit a 500 words essay on the topic Looks.com:A Grey Issue.As a matter of fact, grey marketing acquires its profits from the high-priced markets. It is this concept that Ian Smith, the b

Hi, need to submit a 500 words essay on the topic Looks.com:A Grey Issue.

As a matter of fact, grey marketing acquires its profits from the high-priced markets. It is this concept that Ian Smith, the brain-child of looks.com, is intending to utilize for reasons of parallel importation of cosmetic products to the markets in the Asia region.

Like any other business venture, the grey market for cosmetics is propelled by various factors. According to an article by the Richard Ivey School of Business, the level of unparalleled loyalty that customers show is fundamental to the grey markets for cosmetics. Statistically, 80 percent of the sales that are done on cosmetic products are accounted for by recurring purchases that are made by the same customers. The recognizability of these products is also another factor that drives the market for cosmetics products. This particular feature of the products is as a result of the extensive marketing strategies that are used by manufacturers.Furthermore, the ease with which these products are imported due to their small sizes attract people to this line of business. This in turn ensures that managing inventories for them becomes an effortless task. Moreover, the fact that their prices are consistently high ensures that there are high returns. For this reason, entrepreneurs engaging in this nature of business are assured of sustainability in the market.

Grey marketing is conducted by people who are out of the traditional marketing chain. In Hong Kong, the grey market consists of certain manufacturers who would like to sell previous season’s products, either because they are close to their sale by dates or make a residual inventory. Additionally, the goods can be procured via legal purveyors or unlicensed merchants. The chain also involves purchasing the cosmetics at discounted prices from either an international or local insolvency of a retailer, as well as retail purchases in shops. The myriad channels of acquiring this product have ensured