"Exploring Product Categories Preferred by Consumers in the Gray Market"

Abstract

This study investigates the product categories most preferred by consumers in the gray market, focusing on the National Capital Region (NCR) of India. Gray markets, which offer legally manufactured goods through unauthorized distribution channels, have gained prominence due to price advantages and brand accessibility. A quantitative, descriptive research design was employed, using a structured questionnaire administered to 150 purposively sampled respondents with prior experience in gray market purchasing. The study examined preferences across product categories such as electronics, fashion apparel, cosmetics, luxury items, and footwear, and analyzed key motivational drivers including price sensitivity, brand appeal, availability, warranty concerns, and risk perception. Statistical analysis using SPSS involved one-way ANOVA and multiple regression to identify significant patterns and relationships. Results indicate a strong consumer inclination toward electronics and fashion products, primarily influenced by cost savings and brand desirability, while concerns about warranty and perceived risk act as deterrents. Age emerged as a significant demographic variable, with younger consumers showing greater acceptance of gray market purchases. The findings offer practical insights for brands and policymakers seeking to reduce gray market dependency by improving affordability, access, and post-purchase value in formal retail channels.