Business, Thought, and Management Articles --- Import Business in Actuality --- Parallel Imports and Authorized Agent
If you are to import foreign products and sell into domestic market, you have roughly two ways. One it make a regular agency contracts with suppliers that produce the goods. Another is purchase the goods in foreign country and sell by the parallel imports.
If you are to import foreign products and sell into domestic market, you have roughly two ways. One it make a regular agency contracts with suppliers that produce the goods. Another is purchase the goods in foreign country and sell by the parallel imports.
Parallel import of genuine goods, are common in overseas brand products such as bags and accessories.
Basically regular agency spend money for shop's interior and advertisements.
To improve the brand image, it is also necessary to spend for employee training.
Their cost will be piggybacked in commodity prices.
So, the branded products bought from authorized agent shops tend to be expensive.
Even a brand is famous and popular in Japan, it may not so popular in some other contries and can be bought with much cheaper prices.
If you buy them with cheaper prices and sell in Japan, you can make money.
By the development of mail order via the Internet, increasing number of people who are not professional, buy branded products in the overseas individually, and sell via the Internet.
With parallel imports people will be able to get a branded roducts with much cheap prices, but most of the parallel imports are not guaranteed when quality troubles occur.
Be careful when buying since sometimes fake products are sold as a name of parallel imports.
The parallel imports enabled because there are authorized agencies that maintain the high brand images of the products.
Once the authorized agencies changed the strategy, the parallel importers can be at a standstill.
*Return to Import Business in Actuality
Import Formalities
Generally, import is to buy goods in foreign coountries to sell or use in the domestic country. Since we bring goods from abroad, we ust have procesures in accordance with the customs law etc.
Regulation of Imports
Every day, various things have been imported from abroad. Daily life goods, animals, industrial products and other wide-ranging goods are imported. Many things close to us and used in everyday life are imported goods.
Longing for Overseas
There are many people who feel the longing to overseas by the images in films, television or memories of travels. They would feel the overseas atmosphere in their everyday lives.
Import and Sale of Branded Goods
People like brands. Importing to sell branded goods will be such a profitable business model that could meet the needs who love brands.
Cost Reduction
There are a lot of inexpensive goods sold in abroad than those manufactured in our country. There is a variety of features depending on countries, such as low-labor-cost, rich in resources, with plenty of water, a valt land, etc.
Quality Troubles
There are some variety of risks to import goods from overseas. Quality problems of imported goods is a big risk for the trader to import and sell the product. Reducing the risk of quality problems is a very important skill for the importers.
Infectious Diseases, Termites, and Insect Damage
When importing animls, furnitures, foods and plant seeds, they may suffer infectious diseases, termites or insect damages. Sometimes those can be stopped at customs, and thay become big problems after imported.
Stock, Supply Risk
If you import goods from abroad, the stock of the product can be big, and there sometimes could be supply shortage compared to domestic production goods. The importers should understand the supply risk and stok risk well, and take countermeasures in advance.
Foreign Exchange and Political Risks
Sales of products imported from overseas are affected by changes of foreign currency and political situation. When exchange rate changes rapidly and import prices are increased, the sales will affected. Imports can be stopped depending on the political situation.
Reputational Risk
Sometimes products imported from abroad and sold do not sell at all suddenly for rumors. Once imported foods became a problem, sales of other imported foods can drop significantly, or can affect unexpected fields.
Parallel Imports and Authorized Agent
If you are to import foreign products and sell into domestic market, you have roughly two ways. One it make a regular agency contracts with suppliers that produce the goods. Another is purchase the goods in foreign country and sell by the parallel imports.
Local Subsidiary and Production
Importing products that are already in overseas is not only business. It is also be good business to go overseas, make local subsidiaries, purchase proactively, make manufacturing plants and do productsion.
Import and Internet
With the development of Internet, all commerce are about to change significantly. As well as those involved in the import business, it is important to think the impact of the Internet and to take advantage of it.
International Exchange
Import is the act to carry products in foreign countries because it is intended to be sold and used in domestic. So to speak, the import is the international exchange by products. Because this is international exchange, images and connection of people are very important.
Realization of Longing
By importing DVDs, novels, paintings, films and television dramas, foreign cultures are coming into the country. By touching many cultures, people feel longing for foreign countries. Longing generates consumer appetite of foreign goods.
