Is it legal to import branded merchandise from China?

With all the business education you can find today with just a click of the mouse, I’m still in awe of some of the unrealistic expectations that people have when it comes to product sourcing. Those who have chosen product marketing as a business model are naively under the impression that most wholesale suppliers will be able to offer virtually any popular retail product, affordable to them at any price. Reality, however, always seems to get in the way of our ideals. Most of today’s trendy brand name products tend to have restrictions on the way they are distributed. For example, LV bags are never sold “wholesale to the public”, or simply to anyone with a resale certificate. And while there are exceptions, you will never see too many “half price” sales of Louis Vuitton bags even at the retail level.

Additionally, unsold inventory is not transferred to wholesalers or the secondary surplus market. Excess product that is damaged is sent to your corporate service centers for repair. What cannot be sold or repaired is destroyed. In terms of online retail sales, the only web portal that markets LV bags is Eluxury.com. Moet Hennessey, a leading luxury product group, owns Eluxury.com, as well as the rights to sell a number of additional products under the Louis Vuitton brand. Moet Hennessey also owns most of the retail stores that distribute Louis Vuitton products. Not all brands are that restrictive, but some corporate purchasing policies can still create barriers to entry in different ways.

Both Nike and Reebok do not limit the sale of their product to wholly owned corporate or online retail stores. They distribute their brands to retail giants like Footlocker and will supply most independent clothing or sporting goods stores if they have the infrastructure and funds to meet their monthly or annual minimum purchases. Most small start-ups don’t have the financial resources to bear the costs of carrying popular brand merchandise. However, a limited number of Nike and Reebok products may make it to the wholesale and secondary surplus market. But, those are mainly footwear or sneaker products that maybe a year or two will go out of style. You will never find current styles of Nike or Reebok shoes at a wholesale dealer.

Despite some of the strict buying hurdles that corporations can offer, this does not stop some people from abandoning their search for their brand-name merchandise of choice. Some will try to circumvent a company’s wholesale distribution chain or corporate purchasing restrictions by looking for the original equipment manufacturer. Since the most popular apparel, apparel, athletic shoes, and electronics are made overseas, the ever-vigilant Entrepreneur will generally turn to import as a means of securing items that have popular retail status here in the United States. .

Take, for example, Shenzhen, China. In Shenzhen, there is a closed shopping center called Luohu Commercial City. The mall is six stories high and sells a wide range of items, including handbags, branded clothing, shoes, audiovisual products, souvenirs, and digital video discs. Everything is obtainable for a price that is roughly half to a third of what you would pay here in the United States. Some DVDs can be purchased for four Hong Kong dollars, which translates to fifty cents in US currency.

The biggest problem with all merchants selling their products within this mega-complex of retail activity is the undeniable fact that most of them are counterfeits. And, like the endless parade of counterfeits that is part of Luohu’s retail environment, finding your way to the authentic manufacturer or wholesaler of a particular brand item is like searching for the proverbial needle in a haystack.

The paperwork, it doesn’t make it authentic! There is a prevailing wisdom among some brand finders that receiving a certificate of authenticity from a brand manufacturer abroad will provide assurance that the item is genuine. Providing documentation to foreign customers as “proof of purchase” for branded products is basically a fallacy. Any label, tag, paperwork or certificate of authenticity that guarantees the buyer the certainty of the brand can be counterfeited along with the product itself. The only people or companies that should have proof of authenticity are those who are authorized to resell the branded item, or the original equipment manufacturer (OEM) of the brand in question.

If there is a legal challenge to the authenticity of the product they are selling, then documentation can be provided to confirm that they are legally authorized to sell or manufacture a particular branded product. To my knowledge, no wholesale supplier of branded products, abroad or in the United States, will provide their customers with documentation proving their authenticity. The proliferation of counterfeit items within the People’s Republic is staggering. The breeding industry in China, as well as other Asian countries, relies on the production of counterfeit goods and has become a staple of the industry. It is estimated that 8.5% of China’s GNP involves the production of counterfeit goods.

Also, if you are thinking of importing branded products through online business forums such as Alibaba.com and EcEurope.com, I have some less encouraging news for you. Most of the business opportunities in both forums require thorough research and working knowledge of the import business before considering doing business with any of the listed companies. However, I don’t want to be totally negative about the business opportunity forums. I think they serve their purpose in terms of finding leads for general unbranded merchandise, manufacturer leads, and industrial equipment purchases. But I would be very skeptical of anyone posing as the wholesaler or original manufacturer of American brand products.

Trying to forge a relationship with someone who claims to have the genuine item can also be a financially dangerous endeavor. Most business providers to companies abroad require payment in the form of a bank transfer or telegraphic transfer (T / T). The minimum purchase that some suppliers request is a merchandise shipping container. Transferring cash to a business account abroad can be a recipe for disaster. Once the money leaves your account, it is gone forever. If the seller fails to deliver, you basically have no legal recourse to get your money back. The only way to get the funds back would be for the seller to reconnect the cash to your account. You are basically at the mercy of the provider.

The conclusion is the following. If you want products like Nike Air Jordan, you have to go to Nike and find out how to buy their products. The same goes for almost any brand name product you want to buy. If you can’t afford a particular product, then sell an unbranded item. There are many product niches that you can explore. That being said, I am not the last word when it comes to importing branded products. Do your homework and consult the appropriate legal, commercial and import-export resources.

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