Parallel Import: What is it?
Parallel import is the import of branded goods into a market where the product is already marketed, without the permission of the intellectual property owner. Since these goods are non-counterfeits, they are often referred to as “gray market products”.
Gray market sellers may be unauthorized sellers utilizing a legal loophole allowing re-sale of purchased goods, but may also be authorized sellers selling out of territory or in non-compliance with the brand’s pricing policy. Such sellers can sell the branded goods at a discount, thus introducing unfair competition. This occurs more often when brands apply different pricing strategies in different regions, as the price difference makes it worthwhile to buy in a lower priced region, and sell in a higher priced region.
Parallel Import: Problem & Effects
The above activities reduce sales for your brand, or reduce margins. They may also challenge authorized agents and distributors, affecting sales efforts.
As a brand owner, parallel import may affect your pricing strategy as a whole. Also, if your brand decides not to sell in a specific territory, there are probably good reasons why. Selling out of territory may result in lower level of service compared to your brand’s standards, and safety may also be an issue as different features, such as the voltage of technology products, my result in dysfunctional products. Lack of control over parallel import may also affect brand exclusivity and reputation.
Parallel Import: The Wiser Solution
Wiser Market’s advanced system monitors your brand across numerous eCommerce channels to identify sellers in violation of MAP or territory agreements, so you gain control of your brand.
In spite of the fact that parallel import is in many cases legal, it is not impossible to remove listings belonging to parallel import sellers off the market. Many intellectual property owners wrongly assume that it is impossible to fight, therefore wavering on a significant share of their potential revenues. We have the ability to follow the online sellers’ supply chain, and trace the channels they purchase from.
Following monitoring and detection, our team of in-house experts analyzes the listings to determine the best way to enforce your rights. Making unauthorized sellers work a lot harder to sell your products often interprets into increased sales for you.
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