|This article does not cite any references (sources). (January 2008)|
The green market is the distribution of refurbished, used, repaired, recycled, discontinued or new products that are in working condition. They are sold through brokers and resellers, not through the original manufacturer. These goods are suitable for resale to customers as a lower cost alternative to buying new goods from standard distribution channels such as retail stores.
History of the term
In the late 1980s and early 1990s, manufactures that produced computer, telecom and networking equipment labeled this resale market the 'grey market'. Their goal was to create fear in customers of buying counterfeit or stolen products, goods in uncertain working condition or with doubtful warranties. This fear of the ‘green market’ assured manufacturers that customers would buy directly from them and would buy new products rather than repairing old ones.
Ironically the green market is absolutely necessary for the maintenance of current systems that are in need of replacement parts that have been discontinued or the manufacture had gone out of business.
Benefits of the market
The negative effects of over producing new electronics products and disposing rather than repairing existing equipment, has been recognized as ecologically hazardous. Buying green market products to repair current systems is not only very cost effective, but is more environmentally responsible than continually replacing systems with new equipment.
Electronic equipment is made up of many precious materials including highly refined glass, gold, aluminum, silver, polymers, copper and brass. Electronic recycling companies have the ability to store, disassemble, separate and transport these materials to companies in the manufacturing sector that will purchase and reuse them. Otherwise they would end up in landfills polluting the soil and water with dangerous chemicals and non-biodegradable waste.
Many working products are sold by resellers who have the knowledge and capability to properly redistribute them via the green market. Often they are sold to customers on website market places.