Rules Of Importing Branded Goods
When you are importing branded goods from one country to another for resale purposes, it is important to familiarize yourself with all applicable national and local laws as well as get manufacturer approval beforehand. These rules are often complex depending on item in question, pricing in the 2 markets as well as manufacturer policy depending on which your items could get classified as a part of the `grey' or illegal market. Let's look at some things that you should keep in mind when importing branded products.
- Companies price their products differently in different countries based on customer potential, currency, local laws and other factors. Importing their products and reselling them can affect their supply chains, dealer confidence as well as credibility of the brand as people will start buying from the reseller and not the authorized dealer.
- Companies often have different product lines for different countries. They can do so for various reasons like cultural sensibilities, religion or just plain strategy. Naturally they would not like if a brand sub category that they have not launched in a country for a specific reason, gets launched by an importer.
- Companies often have defective, surplus or damaged stock that gets smuggled out of the country by unscrupulous suppliers. Often importers then resell them to unsuspecting customers tarnishing the brand's name without their knowledge.
- Most companies outsource production to other countries like China and India where labor is cheaper. Often shipments that get delayed or don't meet quality parameters set by the manufacturer, find their way in the open market. They carry the logo but are not really company approved goods. These get sold at dirt cheap rates by the pound and again, don't help the manufacturer's image in any way due to their suspect quality.
- Counterfeits are again a big business and while products may carry the company logo, they are in no way representative of the brands' commitment to quality and customer satisfaction. Getting caught importing counterfeit brands can get you into serious trouble and should be avoided completely.
Questions and Answers
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