Importing Brand Name Merchandise From China – is it Legal?

Considering all the advanced business educationauthentic manufacturer or wholesale distributor of a
available on the internet with just the flick of theparticular branded item is like searching for the
fingertip, I am still amazed at some of the unrealisticproverbial needle in a haystack.
expectations people have when it comes to productEven the existence of documentation, it does not
sourcing. Those who have chosen product marketingmake it authentic! There is a prevailing wisdom among
as a business model are naively under the impressionsome brand seekers that receiving a certificate of
that most wholesale suppliers will be able to provideauthenticity from a brand name overseas
them with just about any popular retail product,manufacturer will provide assurance that the article is
affordable to them at any price. Reality, however,genuine. Supplying paperwork to overseas customers
always seems to get in the way of our ideals. Mostas "proof of purchase" for branded merchandise is
current, in vogue, branded merchandise usually havebasically a fallacy. Any labels, tags, paperwork, or
restrictions on the way it is distributed. For example, LVcertificates of authenticity that assures the buyer of
Handbags are never sold "wholesale to the public", orbrand certainty can be faked right along with the
to just anyone who has a resale certificate. And whileproduct itself. The only individual or businesses that are
there are exceptions, you will never see too manyrequired to have proof of authenticity, are those who
"half off" sales of Louis Vuitton Handbags even at theare authorized to resell the branded item, or the original
retail level.equipment manufacturer (OEM), of the brand in
Furthermore, unsold inventory is not passed along toquestion.
wholesalers or the secondary surplus market. ExcessShould there be a legal challenge to the authenticity of
product that is damaged, is sent to their corporatethe product they are selling, then paperwork can be
service centers to be repaired. What cannot be soldprovided to confirm that they are legally sanctioned to
or repaired is destroyed. In terms of online retail sales,sell or manufacture a particular brand name product.
the only web portal that markets LV handbags is MoetTo my knowledge, no wholesale supplier of brand
Hennessey, one of the leading luxury products groupname merchandise, either overseas, or in the United
owns as well as the rights to sell a number ofStates, will offer their customers paperwork stating
additional products under the Louis Vuitton monique.proof of authenticity. The proliferation of counterfeit
Moet Hennessey also owns most over the counteritems within the People' Republic is staggering. The
retail stores that distribute Louis Vuitton merchandise.replication industry in China, as well as other Asian
Not all brands are as restrictive, but some corporatecountries rely on the production of counterfeit
buying policies can still provide barriers to entry inmerchandise and has become an industrial staple. It is
different ways.estimated that 8.5 % of the Chinese GNP involves the
While Nike and Reebok do not confine the sale of theirproduction of counterfeit merchandise.
product to wholly owned corporate retail, or onlineFurthermore, if you are thinking about importing brand
stores, they distribute their brands to retail giants likename merchandise through online trading forums such
Footlocker. They will supply most independent clothingas and EcEurope.com, than I have some less than
or sporting goods stores if they have the infrastructureencouraging news for you. A majority of the trades
and the funding to meet their monthly or yearlyleads on both forums require extensive research and
purchasing minimums. Most small business start-ups doa working knowledge of the importing business before
not have the finances to endure the costs of carryingyou ever think about doing business with any of the
popular branded merchandise. However, a limitedlisted companies. However, I don't want to be totally
amount of Nike and Reebok merchandise can findnegative about trade lead forums. I think that they
their way into the secondary surplus and wholesaleserve their purpose in terms of finding leads for
market. But, that is mostly shoe or sneaker productsnon-branded general merchandise, manufacturer leads,
that maybe one to two years out of style. You willand industrial equipment purchases. But, I would be
never find current Nike or Reebok sneaker stylesvery skeptical of anyone who presented themselves
being carried by any wholesale distributor.as the original wholesaler or manufacturer of
Even though there are extremely strict purchasingAmerican brand name merchandise.
obstacles that corporations come up with, it does notAttempting to forge a relationship with someone who
prevent some people from giving up on the search forclaims to have the genuine article can also be a
the branded merchandise of their choice. Some will tryfinancially dangerous endeavor. Most overseas
to bypass a company's wholesale distribution chain orbusiness to business suppliers require payment in the
corporate purchasing restrictions by searching for theform of wire transfer or telegraphic transfer (T/T). The
original equipment manufacturer. Since most popularpurchasing minimum that some suppliers ask for is a
retail clothing, apparel, sneakers, and electronics areshipping container load of merchandise. Wiring cash
manufactured overseas, the ever-vigilant Entrepreneurinto an overseas business account can be a recipe for
will usually turn to importing as means of securing itemsdisaster. Once the money leaves your account it is
that have popular retail status here in the Unitedgone forever. If the seller does not deliver, you
States.basically have no legal recourse in terms of getting
Consider in this case Shenzhen, China. In Shenzhen,your money back. The only way to recoup any funds
there is an enclosed shopping mall called Luohuwould be for the seller to rewire the cash back into
Commercial City. The mall is six stories tall and sells ayour account. You are basically at the mercy of the
wide range of items, including handbags, brand namesupplier.
clothes, shoes, audio-visual products, souvenirs, andThe final consideration is this. If you want products like
digital video discs. All can be had for a price that isNike Air Jordan, you have to go to Nike and find out
about half to one third of what you would pay here inhow to purchase their products. The same is true with
the United States. Some DVD's can be purchased forjust about any name brand merchandise you want to
four Hong Kong dollars, which translates to fifty centsbuy. If you cannot afford a particular product, well, then
in United States currency.sell a non-branded item. There are plenty of product
The main thing with all of the merchants selling theirniches out there that you can explore. With that being
wares within this megaplex of retail activity is thesaid, I am not the last word when it comes to importing
undeniable fact that most of it is counterfeit. And, likebrand name merchandise. Please do your homework
the never ending parade of fakery that is part of theand consult the appropriate legal, business and
Luohu retail environment, finding your way to theimport-export resources.