Parallel imports

IceCreamMan · 2013-05-08T13:10:13+00:00

Happens in the motorcycle/ electirc appliance industries and is/was beneficial to the consumer as official importers were forced to drop prices to remain com...

Parallel imports

exsanguinator

IceCreamMan wrote: *Parallel import is an import that is the same as the official import but does not come via the official distributor. The warranty of these products is borne by the parallel importer and not the official importer.

Not necessarily..as a lot of top brands offer international warranties...
Read on their websites...
Thats what customer service is,
rather than alienate a customer.... rather sort something out..is my belief...
I bought two B&O bluetooth headsets at Heathrow a few years ago,one became faulty...local distro sent me a brand new one in the mail once all the paperwork was done...
the local agency can moan and grunt and tell you/threaten otherwise,but a quick email to HO sorts it out chop chop,
Personally,if its too heavy to post ...I haggle locally...
Legally..no one is allowed to sell/market parallel imports, if it specifically states in the distributors contract terms...
I doubt a reputable company would actually sell to a grey importer if they honored that agreement...
Buying a handful of items online and selling them thru Gumtree?
I doubt that can be stopped,but thats not being a grey importer by a long mile,...unless you do it ongoing and sell them out your shopfront,(which now becomes a local deal,legally,and you are covered for a compulsory 12 months warranty)and the local dist has a clause stating to prevent this.......
But then this is RSA...anything goes ..right?

Sneaky-Pete

Talking about motorcycle imports.....in the early 70s, some guy in the transvaal decided he'd build motorcycles for the SA market.

Naturally he wenr to the Govt and asked for an import tax on foreign motorcycles to protect his local industry.
They introduced the import tax....the guy never built a single bike,,,,and the tax is still in place today.....

IceCreamMan

exsanguinator wrote:
IceCreamMan wrote: *Parallel import is an import that is the same as the official import but does not come via the official distributor. The warranty of these products is borne by the parallel importer and not the official importer.
Not necessarily..as a lot of top brands offer international warranties...
Read on their websites...
Thats what customer service is,
rather than alienate a customer.... rather sort something out..is my belief...
I bought two B&O bluetooth headsets at Heathrow a few years ago,one became faulty...local distro sent me a brand new one in the mail once all the paperwork was done...
the local agency can moan and grunt and tell you/threaten otherwise,but a quick email to HO sorts it out chop chop,
Personally,if its too heavy to post ...I haggle locally...
Legally..no one is allowed to sell/market parallel imports, if it specifically states in the distributors contract terms...
I doubt a reputable company would actually sell to a grey importer if they honored that agreement...
Buying a handful of items online and selling them thru Gumtree?
I doubt that can be stopped,but thats not being a grey importer by a long mile,...unless you do it ongoing and sell them out your shopfront,(which now becomes a local deal,legally,and you are covered for a compulsory 12 months warranty)and the local dist has a clause stating to prevent this.......
But then this is RSA...anything goes ..right?

Parralel imports are not illegal ....but the CPA states u have to mention the fact that its not official import. you cant legislate freedom of contracting and buying. Wantitall as an example would classify as a parallel importer, as was takealot..... Kalahari in some resoects is prolly a parallel importer too.(just examples)

Parrallel imports rarely come via official channels ....they are sourced elsewhere..while this may result in inefficiency in the motorcycle industry the same models were still significantly cheaper...

actually I am beginning t o hear rumbles of some stores going this route or seriously looking at it to bypass the official importers an prohibitive pricing structures, if this is so ...I wish em well.

Bob-Dubery

IceCreamMan wrote: Parralel imports are not illegal ....but the CPA states u have to mention the fact that its not official import. you cant legislate freedom of contracting and buying. Wantitall as an example would classify as a parallel importer, as was takealot..... Kalahari in some resoects is prolly a parallel importer too.(just examples)

Hi-Fi Corporation is a parallel importer (maybe for some brands, not for others). I don't know if they mention it in adverts, but they do tell you in the shop and do provide a guarantee that they honour.

Bob-Dubery

IceCreamMan wrote: actually I am beginning t o hear rumbles of some stores going this route or seriously looking at it to bypass the official importers an prohibitive pricing structures, if this is so ...I wish em well.

The gripe I hear in stores about suppliers is about how many of them are causing cash flow problems and taking a long time over orders. They want (so I'm told) the cash upfront before they'll order the stock from overseas, and sometimes they'll wait for cash from multiple shops so that they can place one big order. So the stores have paid for something, don't get it after the payment and sometimes they don't know when they'll get it.

I also hear grumbles about how some chains who are supposedly distributors for SA pay only lip service to distribution and really hog the brand for themselves.

Finally I hear that some franchises have been removed by the parent company BECAUSE the previous franchisee were using the brand to try to make their shops more attractive.

So it's interesting times, with all that comes with it.

We shouldn't rule out action by the actual brand to shut down parallel imports or to prompt supposed distributors into actually distributing.

Tokai-SA

IceCreamMan wrote:
exsanguinator wrote:
IceCreamMan wrote: *Parallel import is an import that is the same as the official import but does not come via the official distributor. The warranty of these products is borne by the parallel importer and not the official importer.
Not necessarily..as a lot of top brands offer international warranties...
Read on their websites...
Thats what customer service is,
rather than alienate a customer.... rather sort something out..is my belief...
I bought two B&O bluetooth headsets at Heathrow a few years ago,one became faulty...local distro sent me a brand new one in the mail once all the paperwork was done...
the local agency can moan and grunt and tell you/threaten otherwise,but a quick email to HO sorts it out chop chop,
Personally,if its too heavy to post ...I haggle locally...
Legally..no one is allowed to sell/market parallel imports, if it specifically states in the distributors contract terms...
I doubt a reputable company would actually sell to a grey importer if they honored that agreement...
Buying a handful of items online and selling them thru Gumtree?
I doubt that can be stopped,but thats not being a grey importer by a long mile,...unless you do it ongoing and sell them out your shopfront,(which now becomes a local deal,legally,and you are covered for a compulsory 12 months warranty)and the local dist has a clause stating to prevent this.......
But then this is RSA...anything goes ..right?

actually I am beginning t o hear rumbles of some stores going this route or seriously looking at it to bypass the official importers an prohibitive pricing structures, if this is so ...I wish em well.

How can a music store import a product that has an official distributor in SAfrica...especially when the distributor has a signed legal contract with the supplier...there's no way the supplier would supply them.
Sure, music stores can import whatever they like, but not a product that already has an 'official' distributor in SA...unless of course the distributor doesn't have a contract with his supplier, or the supplier has no business ethics, then G-d help the distributor. ?

Tokai-SA

X-rated Bob wrote:
IceCreamMan wrote: actually I am beginning t o hear rumbles of some stores going this route or seriously looking at it to bypass the official importers an prohibitive pricing structures, if this is so ...I wish em well.
The gripe I hear in stores about suppliers is about how many of them are causing cash flow problems and taking a long time over orders. They want (so I'm told) the cash upfront before they'll order the stock from overseas, and sometimes they'll wait for cash from multiple shops so that they can place one big order. So the stores have paid for something, don't get it after the payment and sometimes they don't know when they'll get it.

I also hear grumbles about how some chains who are supposedly distributors for SA pay only lip service to distribution and really hog the brand for themselves.

Finally I hear that some franchises have been removed by the parent company BECAUSE the previous franchisee were using the brand to try to make their shops more attractive.

So it's interesting times, with all that comes with it.

We shouldn't rule out action by the actual brand to shut down parallel imports or to prompt supposed distributors into actually distributing.

Are you talking about music stores, or hi fi/camera/appliance stores?

Bob-Dubery

Tokai SA wrote:
X-rated Bob wrote:
IceCreamMan wrote: actually I am beginning t o hear rumbles of some stores going this route or seriously looking at it to bypass the official importers an prohibitive pricing structures, if this is so ...I wish em well.
The gripe I hear in stores about suppliers is about how many of them are causing cash flow problems and taking a long time over orders. They want (so I'm told) the cash upfront before they'll order the stock from overseas, and sometimes they'll wait for cash from multiple shops so that they can place one big order. So the stores have paid for something, don't get it after the payment and sometimes they don't know when they'll get it.

I also hear grumbles about how some chains who are supposedly distributors for SA pay only lip service to distribution and really hog the brand for themselves.

Finally I hear that some franchises have been removed by the parent company BECAUSE the previous franchisee were using the brand to try to make their shops more attractive.

So it's interesting times, with all that comes with it.

We shouldn't rule out action by the actual brand to shut down parallel imports or to prompt supposed distributors into actually distributing.
Are you talking about music stores, or hi fi/camera/appliance stores?

Musical instrument stores. I hardly ever set foot in hi fi etc stores.

IceCreamMan

Tokai SA wrote:
IceCreamMan wrote:
exsanguinator wrote:
IceCreamMan wrote: *Parallel import is an import that is the same as the official import but does not come via the official distributor. The warranty of these products is borne by the parallel importer and not the official importer.
Not necessarily..as a lot of top brands offer international warranties...
Read on their websites...
Thats what customer service is,
rather than alienate a customer.... rather sort something out..is my belief...
I bought two B&O bluetooth headsets at Heathrow a few years ago,one became faulty...local distro sent me a brand new one in the mail once all the paperwork was done...
the local agency can moan and grunt and tell you/threaten otherwise,but a quick email to HO sorts it out chop chop,
Personally,if its too heavy to post ...I haggle locally...
Legally..no one is allowed to sell/market parallel imports, if it specifically states in the distributors contract terms...
I doubt a reputable company would actually sell to a grey importer if they honored that agreement...
Buying a handful of items online and selling them thru Gumtree?
I doubt that can be stopped,but thats not being a grey importer by a long mile,...unless you do it ongoing and sell them out your shopfront,(which now becomes a local deal,legally,and you are covered for a compulsory 12 months warranty)and the local dist has a clause stating to prevent this.......
But then this is RSA...anything goes ..right?

actually I am beginning t o hear rumbles of some stores going this route or seriously looking at it to bypass the official importers an prohibitive pricing structures, if this is so ...I wish em well.

How can a music store import a product that has an official distributor in SAfrica...especially when the distributor has a signed legal contract with the supplier...there's no way the supplier would supply them.
Sure, music stores can import whatever they like, but not a product that already has an 'official' distributor in SA...unless of course the distributor doesn't have a contract with his supplier, or the supplier has no business ethics, then G-d help the distributor. ?

Easy ,very easy via a 3rd party ....the manufacturer is not even involved...in some cases they may be aware of it but will turn a blind eye as they moving product...

Whereever inefficiency exists around business models the opportunity for parralel imports arises and at better pricing....

Attila

In the IT business its all to common.... In years gone by we were distributors for Novell, a networking OS, anyway we made bucket loads of cash selling this into the SA market. Once the market matured and there were sufficient skills to install and support the networks the grey market opened up......

We knew where the product was sourced and how it came in to SA .....I approached Novell seeking some kind of territorial protection in terms of our distribution rights ....... well it never came...... and in fact Novell appointed a second distributor........

Lesson learned .......the bottom line is that as long as the OEM sells product and keeps THEIR competitors out they don't really care....... Its all about the Green Back baby nothing more nothing less .... want loyalty ? ...... get a dog

exsanguinator

IceCreamMan wrote: Easy ,very easy via a 3rd party ....the manufacturer is not even involved...in some cases they may be aware of it but will turn a blind eye as they moving product...

Whereever inefficiency exists around business models the opportunity for parralel imports arises and at better pricing....

I disagree,reputable companies have ethics and wouldnt jeopardize a legal agreement if a full sole distributor was signed
The legal implications are huge if the distributor needs to lay off staff etc etc
Whats written in an agreement can be open ended though,(target volumes not met,criminal negligence,etc etc)theres heaps of clauses involved
and thats what the local distributor would have agreed to...
They would have to be notified in writing whenever any clause takes effect as well
so they cant whinge about it..