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This involves products manufactured legally and are transported from an outside market to a different market through illegal, unauthorized means affecting the market for lower prices than official distributors.

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Importing?

1. Product Differentiation: Creating material differences between products for different markets.

2. Promotional Incentives: Offering unique deals, loyalty schemes, or value-added services (like extended warranties or free samples) to customers who purchase through authorized channels, making parallel imports less appealing.

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Features Parallel imports Counterfeit goods

The product is genuine, produced by the brand or its authorized party, fake goods, illegal imitation

Legality is in the legal gray area, and the legality is different in different countries. It is clearly illegal.

Relationship with the brand. Without the authorization of the brand in the importing country, it completely infringes on the intellectual property rights of the brand.

The core driving force is to take advantage of the price difference in the international market to make profits through deception.

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Advantages VS. challenges of Parallel Import

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Advantages VS. challenges of Parallel Import

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Although it increased RECOGNITIONS but it should be with respect to the authorized distributer

It increases the COMPETITION but it can be a potential damage to the brand image

The price of product is LOWER however it can be risk for product QUALITY and SERVICES

It improves MARKET ACCESS but it harms the AUTHORIZED DISTRIBUTOR’s market