Sunday, 15 April 2012

Why I Don't Source Brands For Parallel Or Grey Export From China


Just why won’t I source iPhones, XBoxes, and the like, from China?

Well, I'm going to keep this brief, and to the point, and use Microsoft(TM) and Apple(TM) as examples, since they’re really very commonly sought after brands. 

The Russian and other Caucasian mafias are very organised, and have a lot of funding behind them. Consequently, having a technician take a piece of equipment, such as an Xbox or iPhone, apart, and making technical drawings of the product, isn't really a matter which presents them with any great difficulty. 

Having business cards made claiming they represent Microsoft(TM) or Apple(TM), presents them with equally as little difficulty. Printing headed paper for letters, and bonded paper for business production and distribution RIGHTS licences, for the purpose of confirming that a company is being granted the RIGHTS, to manufacture and distribute, the Xboxes and iPhones they manufacture, under that licence, is no problem either. Sending some men, and a beautiful female interpreter, to China to convince Chinese factory owners that they are genuinely being granted licences to manufacture and distribute "genuine Microsoft(TM) or Apple(TM)" products, presents just as little difficulty. Of course, when once they arrive in China, and some small, medium to large electronics company, in central China, in the middle of nowhere, is paid a visit by the mighty Microsoft(TM) or Apple(TM) corporations' representatives – then they are, of course, deeply humbled and just can't believe their luck; whilst afterwards,  it takes them at least a fortnight to stop smiling at themselves, and they will never tire of boasting of their new connection with the mighty Microsoft(TM) or Apple(TM) corporations. 

After wining and dining their esteemed and honoured guests, they then find themselves being presented with the license to manufacture and distribute on behalf of these great names. It’s like being granted a license to print money! 

Within months their goods are being bought and sold in China, and then sent abroad to small buyers, purchasing through the internet, looking to make a buck by buying cheaply from China. Of course, the reality is that a genuine REGIONAL MANUFACTURER or DISTRIBUTOR, would never dare risk losing their license by selling outside of their geographically acknowledge sales region. Meanwhile, the Chinese manager producing the goods, hasn't the slightest idea that he's producing fakes. He thinks it's all real. After all, the people who came, where all foreign, white, big, wore expensive clothes, shoes, and watches, and stayed in the most expensive suites in the most expensive hotel in town. They even had business cards, letterheads, secret plans and technical drawings, and bonded licence paper, and a company seal. What is there to doubt? How could the factory owner possibly doubt them? And I bet this goes on in other countries such as India, Pakistan, and elsewhere.  

I suppose you can now see why I won't touch named brands in China for the purposes of export. It simply isn't worth the risk to me, my reputation, to you, or your clients

If you want the genuine goods, then speak to the OFFICIAL Microsoft(TM) or Apple(TM) DISTRIBUTOR (or whatever brand) for your particular geographic region. A quick visit to their websites should provide you with that information. 

Do yourself and your clients a favour.  

Why do you think you're going to get them cheaper here?  

Safe Trading!

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