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Cost and Import: Is It Really Dangerous to Purchase Parallel Imports?

The parallel imports are fighting in the Israeli market, from toiletries, through smartphones to appliances.

Official importers claim a built-in advantage, but find it difficult to compete with the price.

Is it always better to buy a product with an official warranty and when exactly is the third option, personal import, the best?

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• Parallel imports

Walla!

Business

Wednesday, 25 November 2020, 09:50

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In the video: Although they have already received reports and contrary to the instructions, stores in the malls have opened (Photo: Reuven Castro and Sonia Gorodisky) Follow @givatayimrocks

"Let me ask you a question: Do you buy a product through parallel imports. TV, vacuum cleaner, computer. Went smooth. What do you do? The importer will give you service to the house as we give? Will he replace the part for free? Is he able to match the level of service? "An official importer gives? His responsibility is not the same responsibility at all."

The speaker is the CEO of one of the largest electrical products companies in the country. He preferred to remain anonymous, as quite a few interviewees did for this article. The issue of official imports versus parallel imports is sensitive among suppliers. No one wants to say anything wrong or hurt competitors. Official importers are aware that parallel imports, especially in the field of electrical and electronic products, have opened up the market completely. "I will not lie to you," he says, "if there were no parallel imports there would be no such competition.

But in the end, the question on the part of the consumer is whether saving a few hundred shekels pays off for him. "

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Can a parallel importer give an appropriate solution while repairing?

The phenomenon of parallel imports has flourished in recent years.

In the past we used to buy through only an official importer, but globalization has done its thing.

During the previous decade, with the entry of smartphones into the market, parallel imports erupted in all areas.

In recent years it has even penetrated the automotive field.

What, in fact, is parallel imports?

Each country has an official importer who can import the products.

If he is left alone in the game, the price will be hard, except that at the same time as the official importer there are suppliers who can import the product themselves and sell it at a price they themselves charge.

This method prevents monopolies, bends prices and works in principle for the benefit of the consumer.

But the discount has its own price: if you purchased a product through a parallel import, you will not receive service from the official importer.

Does it really matter that much?

"Our expertise is reflected in the technical knowledge we transfer to service in Israel directly from the manufacturer," explains Yair Rosen, CEO of the BSH Group, which imports the products of the Bosch, Siemens and Constructa brands. "Today, much of the knowledge is based on software and electronics. In electrical appliances, and therefore it is important that the level of professional and technological knowledge be adapted to the manufacturer.

We are also committed to the supply and storage of spare parts in the warehouse in stock (we have a huge warehouse with lots of spare parts).

Unlike us, parallel imports do not hold a stock of spare parts, which can create a problem if a replacement part in an electrical appliance is needed.

"Another advantage is the size of the service system. We have a lot of technicians and installers who have been specially trained for appliance brands, so that customers receive the highest standard of service. We have also adapted to the Corona mode, and we offer our customers the option of remote installation of specific electrical products. Accompanied by a technician remotely by telephone.As an official importer, we take care of bringing models that are particularly suited to the needs of the local market, however a parallel importer is a 'casual importer of goods'. That is, he brings the products there. In addition, we provide our service with the knowledge The technical before the product arrives - which does not happen with a parallel importer. In official import we have a commitment to the manufacturer, to the highest level of quality and service. We conduct customer service surveys to continuously improve our service, and take care to impart technical knowledge on products to our qualified technicians. Washing all the time. "

Provide technical knowledge before the product arrives.

Yair Rosen (Photo: Tamar Mitzpi)

Rosen claims there are other problems as well.

"In parallel imports, we encounter safety hazards as a result of the product not being adapted to the local market technically, for example by not replacing plugs adapted to Israel," he says.

This claim was also supported by other official importers with whom we spoke.

"They have a problem that they do not have a spare parts warehouse. As a result, people can get stuck with a simple malfunction that a parallel service fails to fix, and are left 3 weeks without the product they ordered, a malfunction we would officially resolve within a few days. Exceptionally, we also take care For an alternative product. "

The parallel importers also admit that in the aspect of the service they are indeed inferior, but do not agree on the issue of safety.

"Let no one tell you stories," says the CEO of one of the country's top parallel import chains, "The product is the same product.

So instead of Hebrew you have a caption in Polish on the packaging, but it's the same product one by one.

Indeed, the more sophisticated the product, the more there is a gap.

The parallel importer, in this case, will need the right spare parts, the necessary technical knowledge and more. "

If everyone agrees, why buy in parallel imports?" There are some aspects, "explains the same CEO," first of all, there is the matter of price. Higher, so that the gaps that will be created can be greater.As for the rest, that everyone will make his own considerations.There are very reliable importers and there are some that are less.A large chain will make sure that a warranty can be given, because it has more power to condition it on purchase.We, by the way, We offer both official and parallel imports, letting the customer choose. "

And there are also products that have run out of regular stock, from phones through scooters to models of sneakers, so parallel imports are the only option, and certainly not a bad option.

"The product is the same product. So instead of Hebrew, you have a caption in Polish on the packaging" (Photo: Reuven Castro)

And there is, of course, the matter of branding.

"We emphasize the benefits, professionalism and special services that customers can receive, and also call on the official importer's mark," says Rosen. "In the last two years we have created a customer club to be in direct contact with the consumer after purchase. Instructional videos, tips for use, familiarity with all the features in the product, special benefits and more. "

Still, many people still do not recognize the difference.

In the last year, another player has entered the Internet consumption market - the elderly, those who used to physically go to the store and today operate the credit card.

Most of them, and not only they, of course, just see the lower price and buy.

"You have to read the instructions and the fine print - what exactly is the warranty and whether it is an official importer or not. The math they will do themselves later," says another CEO who imports in a hybrid, both official and parallel.

The consensus among most of the people we spoke to It is better to always buy toys, cosmetics and low-cost products from the corresponding importer because the risk is zero. Shampoo that costs 25 shekels through the official importer may cost 40-50 percent less in parallel imports. You can also get a significant discount on perfume. And parallel imports of a licensed product, so the fact that the perfume costs much less does not mean that it is counterfeit. For smartphones, the price differences can reach several hundred shekels, which may well justify a purchase. "Buy a cordless vacuum cleaner at a parallel import, save NIS 200-300, and then what?

Do not forget that a vacuum cleaner today is not like once, that you would take out of the closet once a week.

"People use vacuum cleaners a lot, they break down, there is a lot of wear and tear and then you look for someone who will give you a service."

Large price differences can be found in the smartphone market

And along with these two routes there is another option - personal import.

The younger generation is increasingly buying online - from Amazon, Banggad and other sites that make it possible to purchase electronic products at a significantly cheaper cost.

On eBay, Israelis in general often buy car parts and bring them to the garage.

This is, for example, a small example of the sophistication created by the current technological age.

The expectation on eBay this November is to increase the import of robotic vacuum cleaners, smart watches and tablets, products that can save quite a bit on personal imports.

"In both official and parallel imports, the consumer purchases the product in Israel," says Yaron Ben Eli, CEO of the USHOPS Group, which specializes in personal imports from the United States, "compared to personal imports where the purchase is from abroad and directly by the consumer."

Ben Eli explains how the warranty works in such a case: "There are two options: international warranty which means that the warranty can also be exercised from the country, or local warranty - which means that in the event of a malfunction the consumer will have to contact a supplier abroad.

Many times large sites and suppliers will prefer to send a new product and save the customer / consumer from sending the product to them, but this can not be known in advance.

There may also be cases in which the consumer will be forced to send the product abroad and take into account the "shipping cost".

Break away from stigmas.

Yaron Ben Eli

Here too, everything is a factor of price.

"Usually, in order for such a deal to be worthwhile for the consumer, there must be a financial gap that pays off for the customer or a product that does not exist in a variety in the country," says Ben Eli. "In many cases the supplier will not require delivery of the item abroad. "Send back".

Why import personally? "The great advantage is in the variety of products open to the consumer and price differences, which can exceed tens of percent compared to the price of the same item in the country," he concludes, "Also, sometimes there are differences in the finish level of a particular item That abroad will be higher than in Israel. This is true for vehicles, electrical products, various kits and even product content (if the product content in the base is greater than the product offered in Israel, there are more accessories and more. I highly recommend examining the warranty before each purchase "International warranty is always preferable and good for the consumer. However, there are many variables that must be taken into account between profit and loss, so it is advisable not to be based on market stigmas, but to make an informed examination of the item and the warranty given at the time of purchase."

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