As we learned in Economic class, secondary market is often known as the black market, or simply a market where the goods are resold. In class, Dr.O mentioned the reason of developing a secondary market is that people cannot get the goods they want in the primary way, therefore a secondary path of getting these goods are developed. From my opinion, the causing of a secondary market can be divided into more detailed reason.
It initially reminds me that on November, 2017, a series of shoes made by both Nike and Off-White were released. Before these shoes were released on their official site, the advertisement of them are flying all over the world with specific date of releasing for each of them. Then on the day of releasing the products, a great number of consumers were waiting in front of the store, or sitting in front of their computer getting ready to purchase their shoes as fast as possible, because they know it’s going to sold out in a very short period of time and which it did happen. I believe the majority of these buyers were not purchasing the shoes for themselves but rather to resold the good, since a secondary market of these shoes were soon developed. A pair of $200-dollar shoes were resold online for more than six hundred dollars, or even exceed one thousand bucks. According to one of these secondary market called StockX, even though it’s been several month, the price of these shoes maintains high, a pair of New Off-White X Nike Zoom Fly could cost $630 dollars. In this case, the quantity demand of the product is much larger than the quantity of supply which causes that not all of the buyers could get the goods they desire, and it lead to a secondary market selling the product in a much higher price.
Secondary, I think a difference of price of the same product could lead to a secondary market as well. For example, I checked on Apple online stores that in the store of United States, a 256GB iPhone X costs $1149 without taxing, while in the store of China, it cost 9688 RMB in same condition in which converted to dollar is above $1600. The difference in price is reasonable because the company of Apple locates in America, and when the product of Apple entering another nation cost additionally, such as shipping payment, import tax. Therefore, when there exists difference in price, a secondary market appears, there are people who live in America goes to stores and buy iphones then sell it to customers in China. To achieve their interest, not only selling iphones but all of the products that are cheaper abroad, whether in America or Europe, people figure out a way to take the products back to China in a lower price.
To sum up, the two other reason of developing a secondary market would be the disequilibrium between demand and supply, when the quantity demand is larger than quantity of supply, and as well as, it occur when people seeking for lower price of a foreigner product.
https://stockx.com/nike-zoom-fly-off-white https://www.apple.com/cn/shop/buy-iphone/iphone-x/5.8-%E8%8B%B1%E5%AF%B8%E6%98%BE%E7%A4%BA%E5%B1%8F-256gb-%E6%B7%B1%E7%A9%BA%E7%81%B0%E8%89%B2#00,11,21 https://www.apple.com/shop/buy-iphone/iphone-x/5.8-inch-display-256gb-space-gray-unlocked#00,20,31,41,60
21st Century Citizenship 