Abstract: With the rapid development of cross-border e-commerce and supporting logistics network, parallel import has a huge impact on some industries.Through the establishment of three game models of multinational manufacturers and local manufacturers under the market power mode, this paper analyzes the pricing and profit of different supply chain participants with or without gray market, and analyzes the impact of parallel imports on the oligopoly competition between multinational manufacturers and local manufacturers in low willingness to pay market.The results show that: when the market willingness to pay ratio is lower than a certain threshold, there will be no parallel imports, and the existence of market power model and gray market can affect the income and pricing strategy of the participants in the transnational supply chain;the gray market is beneficial to local manufacturers and parallel importers,the single manufacturer leading mode helps to reduce the loss of multinational manufacturers, increase the profit of local manufacturers and reduce the profit of parallel importers, and there is a range of market willingness to pay under the mode of manufacturer co-leading which results in the increase of multinational manufacturers′ profit;whether parallel import promotes or suppresses the price competition of oligopoly supply chain depends on the structure of market power.

Key words: supply chain, parallel import, grey market, oligopoly market, price competition