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If I understand the market correctly, manufacturers get their money for every watch sold whether it goes to the customer via an authorized or gray market dealer. With a healthy gray market, authorized dealers don't have to worry about ordering too much inventory because if they get in a temporary money crunch, they can always stay solvent by dumping their stock in the gray market.
Hence, the gray market is vital to overall sales volume, which benefits the manufacturers' bottom line. This is why I keep saying that the industry needs to transform the market in such a way to bring the gray dealers into the legitimate market.
Jeff
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