Consumer Products - Parallel Imports

H

Haldex

Expert Member
Joined
Oct 17, 2011
Messages
4,986
Reaction score
3
Location
City of Gold
I noticed a disclaimer sticker on alot of products lately.
Its called Brand Save Parallel Imports

Brand Save Parallel Imports
These goods are genuine, however they have been imported without the approval of the registered owner of the trademark and no guarantee or warranty, if any will be honoured or fulfilled by any official or licensed importer.
Customer Care no 0861 111 701.
Click to expand...

So what does this mean?
Are the retailers importing products without purchasing from the local distributors? Is that legal? Does it affect our economy?
I also noticed the products are old stock.

Can the big retailers do this?
 
Haldex said:
So what does this mean?
Are the retailers importing products without purchasing from the local distributors? Is that legal? Does it affect our economy?
I also noticed the products are old stock.

Can the big retailers do this?
Click to expand...

AFAIK, they are allowed to do this, it is not illegal, simply frowned upon by the likes of "Proudly South African" type organisations. I also know that with most of these "grey" imports, the local distributors will not honor any warranties. These products are cheaper to import so the retailer will usually "take a chance" on the guarantee and bear the costs of repairs/replacement themselves if something goes wrong. The ratio of this vs. the money saved by the import still makes it very very profitable to rather import.

I recently bought an iPhone in the US and although I purchased it at Apple, they told me that Apple SA will not do any "free" repairs even under warranty, unless I take out the special warranty which is not region specific. So if there is a problem, I will need to chuck it or get it to Apple in the US to fix.
 
werfie said:
AFAIK, they are allowed to do this, it is not illegal, simply frowned upon by the likes of "Proudly South African" type organisations. I also know that with most of these "grey" imports, the local distributors will not honor any warranties. These products are cheaper to import so the retailer will usually "take a chance" on the guarantee and bear the costs of repairs/replacement themselves if something goes wrong. The ratio of this vs. the money saved by the import still makes it very very profitable to rather import.

I recently bought an iPhone in the US and although I purchased it at Apple, they told me that Apple SA will not do any "free" repairs even under warranty, unless I take out the special warranty which is not region specific. So if there is a problem, I will need to chuck it or get it to Apple in the US to fix.
Click to expand...

Thats what I thought, they importing possible grey products and they seem to bear the liabilities if any.
While I dont mind it on electronic goods, consumer products like shampoos, toothpaste, chocolate(Cadbury) etc. This could be hazardous to our economy in the long run if the big retailers like PnP, Game, Makro etc continue doing this.

What would the local approved distributors do about this?
 
werfie said:
I recently bought an iPhone in the US and although I purchased it at Apple, they told me that Apple SA will not do any "free" repairs even under warranty, unless I take out the special warranty which is not region specific. So if there is a problem, I will need to chuck it or get it to Apple in the US to fix.
Click to expand...
If you can produce evidence that you paid vat and import duty when you brought it into SA, iStore will honour the warranty.
 
I don't think the big retailers will do this, especially the ones recognised by the brand.
 
Haldex said:
Thats what I thought, they importing possible grey products and they seem to bear the liabilities if any.
While I dont mind it on electronic goods, consumer products like shampoos, toothpaste, chocolate(Cadbury) etc. This could be hazardous to our economy in the long run if the big retailers like PnP, Game, Makro etc continue doing this.

What would the local approved distributors do about this?
Click to expand...

Well regardless of what they import there would be an impact on the economy, i.e. if goods are not produces here, it means less jobs in the manufacturing sector, maybe one less driver required to deliver goods which in turn means one less truck that needs fuel and repairs which means one less mechanic to fix the truck when it breaks etc, etc.

But I must be honest, I also don't think the big retailers will import those items if they are available here, I may be crazy but I cannot see how importing those "small" items can be cost effective if they can rather be bought locally unless they are knock-off's which they sell at the same price which I also don't see happening by the big retailers. I don't think the risk is worth their reputation. BUT these days, you cannot make any such assumptions as people all over cannot wait to get a sticky finger in a pie somewhere.

Sinbad said:
If you can produce evidence that you paid vat and import duty when you brought it into SA, iStore will honour the warranty.
Click to expand...

Nice!!!! Thanks for that info!!! Touch wood :) No problems yet!
 
VeNGeNCe said:
I don't think the big retailers will do this, especially the ones recognised by the brand.
Click to expand...

Check all Head and Shoulders, Always girlie things, Listerine, Colgate toothpastes and toothbrushes, Nivea and Johnson and Johnson lotions etc, this is just the stuff i found with this sticker.
Cadbury chocolates as well.
Select products purchased at Nicol Way PnP.
 
Hifi Corruption is a prime example of parallel imports being a bad thing. When a company like Samsung brings a product into the country they have to appoint official agents who they supply with spares etc. If a Samsung product is brought in by another source there is the same support from Samsung. All of which equates to piss poor after sales service. The retailer is also usually reluctant to refund or replace the item because that item can't be returned to the manufacturer.
 
If there is a local manufacturer, you should try your best to support them, however, some of the local manufacturers use an import parity pricing model. This mean they will always be very close (just below) to the landed price of an imported product, whether at a high or low exchange rate. It's perfect for the manufacturer, but leaves a bad taste in the mouth of the consumer when a local company charges artificially high prices just because the exchange rate favors it.

Maybe a little unrelated:
My company is in the manufacturing sector, and is always trying to cut out the middle-man/local agent for specialised parts/equipment. They expect a commission for nothing. We place the order with the international manufacturer, we do the expediting/importing, we do the installation. If there is after sales service needed, 9 out 10 times we need to get a technician out from Europe anyway. The agent is therefore adding unnecessary cost to the product, without adding real value.
 
Ive noticed alot of the companies opting to import rather than manufacture locally. I understand they are doing this because labour laws are so strict and expensive that when the product is finished it costs alot more. In this economy as well it is understandable for retailers to bypass the local manufacturers so that they can attract consumers to their stores. Personally with so many of our budgets being so tight Ive managed to make significant savings through products such as batteries, shampoos, shower gels, household detergents to name a few. I'd love to support local but I cant afford not to save a couple of rands here and there. SA has to learn to be more competitive otherwise we gonna lose out big time. Its already happening with alot of things especially clothing.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X