Monday, 9 July 2012

The risks you take when buying grey market cosmetics

I mentioned the other day that I attended a Lancôme media briefing. Whilst I was there, a few of us had an informal chat about grey market cosmetics and it really was quite eye opening so I thought that I might share some of what we talked about with you.

What are grey market cosmetics? These are cosmetics that are legally sold through unauthorised distribution channels. It does not necessarily mean that the product is fake; however, as the distributor has not been authorised by the manufacturer the authenticity cannot be guaranteed. The best known grey market cosmetics distributor would have to be Strawberry Net. Others include some of the larger sellers on eBay or discount stores (as opposed to department stores) such as Chemist Warehouse.

What are the risks? The main risk is that you have no idea whether the product you have bought is in fact genuine, or if it is genuine, just how fresh it actually is. Lancôme bar code all of their products so that they can be traced throughout the distribution chain. There have been times when they have tried to trace back the origins of a product purchased on the grey market to find out which distributors were responsible for the products ending up on the grey market only to find that the bar code did not correspond with any of theirs. So, in this case, the products were fakes.

If the products are fakes then you have absolutely no idea what is in them so you are putting yourself at risk of a reaction to the product as it is unlikely the ingredients have been tested for safety. Best case scenario you have wasted your money on a product that does not do what it claims. Worst case - you have a severe reaction to dodgy ingredients.

As I mentioned, not all products on the grey market are fake. Some find their way there by being bought in countries where the product is cheaper (either for full retail or wholesale prices), then on sold at a profit to countries where the product is more expensive. In these cases, the products are genuine but you have no way of knowing how old the products are or whether they have been stored correctly. Storage at incorrect temperatures can cause cosmetics to greatly deteriorate. Before I understood the concept of grey market products I bought some Estee Lauder skincare from a cheap online site. When they arrived, the packaging all looked genuine; however, when I went to use the products they had separated and there was an oily residue on the top with the cream below looking curdled. I suspect that this was either old stock or it had been stored at excessive temperatures though I really have no idea what as in that jar.

The big companies hate the grey market distributors and it is not just because they cut into their profits. These grey market distributors can really affect the reputations of the big brands by selling products that are inferior that the consumer believes are genuine. Say a beauty blogger buys a much hyped skincare item from StrawberryNet or any other grey market distributor and finds that it does nothing for them, or worse they react to it. They might then blog that the product is a load of crap and not worth the hype. So their readers then think 'Ok, I am definitely not going to waste my money on that one'. The bad review is then on the net forever for anyone to google when in reality the 'load of crap' product is probably not even genuine.

Now, I am not saying to not look for bargains online as no-one likes to pay full price. However, you really should do you research to find out whether the supplier you are buying from is an authorised distributor - often it will say so on the website. If it isn't, ask yourself is it worth the risk and if it is then don't be disappointed if it doesn't perform as expected as you really do get what you pay for.


What are your thoughts on discount cosmetic retailers? Worth the bargain or too risky? Have you ever been burnt by a non-genuine product?


All opinions stated in this blog are my own and I received no remuneration for my comments

Comments (17)

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Kristine Simmonds's avatar

Kristine Simmonds · 663 weeks ago

Last year I was all set to buy a Stila limited edition palette online, but when I checked for reviews of the palette I realised that it was released 8 years earlier! i would never keep cosmetics for that long, especially not something I put near my eyes. I have noticed this many times since then, with cosmetics that were only released at a certain time being sold cheaply several years later.
1 reply · active 663 weeks ago
That's crazy. I was expecting old products to bemaybe 4 or 5 years old - 8 is frankly disgusting, especially, as you say, it will be going near your eyes. Finding out about grey market has really made me decided to suck up the higher costs but at least know i buying quality.

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Subject: http://sarah-thescienceofbeauty.blogspot.com/ - New comment on: The risks you take when buying grey market cosmetics
Such a great post Sarah! It really is an important issue that a lot of people don't know about. I would never risk buying off somewhere like strawberrynet but a lot of people could not recommend it highly enough. It's also a bit disappointing with what it's doing to cosmetic companies sales, especially in Australia
1 reply · active 663 weeks ago
I know what you mean - the beauty forums I frequent all rave about strawberryne and swear by its authenticity. Before I learnt about grey market I keep searching the site, putting items in my shopping cart but i could never bring myself to buy anything. Now I have been educated I am glad that I didnt.

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V informative post, Sarah! I had no idea that Chemist Warehouse etc are grey markets, I had just assumed they were authorized. Wonder if it's the same for Gloss as I get a lot of Revlon polishes there.
2 replies · active 663 weeks ago
no idea about Gloss - you could always contact revlon through facebook or twitter and see what they say

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I forgot to add I am not sure whether Chemist warehouse are grey market for all brands but you can assume and high end brand they stock is grey market. High end brands like to maintain their prestige so wont distribute to a discount chemist. They do distribute to selectedchemists though - but you will know when it is legit as the prices will be similar to what you see in myers/DJs

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This is a great post Sarah!! Another good reason to buy from shops (and locally). :) I don't buy things from Strawberry Net or eBay. I rather pay more than get something dodgy. After all, the money goes towards supporting local jobs and our economy.
1 reply · active 663 weeks ago
I had fun shopping up a storm when I was in Hawaii but other than that I also always try to buy local unless an item is not sold in Australia

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Interesting post. I have purchased off SN many times. I have only once doubted authenticity of a product... it was a MAC blush but I guess that is the risk I took. I did not know Chemist Warehouse also fell into this category. I have purchased Clarins, Dior and YSL from there in the past. I will be aware of it for next time.
1 reply · active 663 weeks ago
It is my understanding that high end brands like to maintain the prestige of their brand so would not distribute to discount stores. These brands do distribute to selected chemists, but in these cases the prices will be much the same as they are in Myer and DJs. I just went to the YSL website to search store locations (http://yslexperience.com/en-GB/store-locator)and the only ones that were coming up were Myer and DJs. I searched Sydney and then Chatswood. I then tried Lane Cove, in which there is a Chemist Warehouse but no results were found. If in doubt, contact the brand through facebook or twitter or even directly by email and i am sure they would more than happy to inform you whether or not a store is an authorised distributor.

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Great post Sarah, thank you. Although I think I will keep buying off the internet (ebay), I hate the markups that brands put on products in Australia! xx
A great post Sarah. I've never bought from SN since they aren't an authorised seller of the brands I'm interested in and so I don't know where their got their stock from. I would prefer to pay full price for a product thats genuine than half price on something that is either fake/old/stored incorrectly.
1 reply · active 663 weeks ago
Thanks! I am getting interesting responses to this. Most people who responded directly on the blog steer clear of SN however
I also posted a link to this ina forum and got a few responses swearing by the quality of SN. I guess its up to the individual whether they are prepared to risk it. I prefer to buy from authorised resellers too - at least you are covered if anything is amiss.

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Interesting post - thanks :)
Very interesting. Have been purchasing off SN for about 10 years and have never had a problem... Only issue was a faulty compact once and they replaced it immediately... Thanks for the post
Not sure this paints an entirely accurate picture of 'grey market' distribution channels- 99% of products are genuine and you may be surprised at some of the retail chains which buy grey as well as their normal distribution channels, including some of Australia's biggest supermarkets and health & beauty retailers. The reason this is cheaper is not because it's dodgy stock, it's just down to the strength of the Australian dollar.

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