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Grey market ruled against
In article
, Rich wrote: http://forums.dpreview.com/forums/re...ssage=37180618 Poor B&H. Half their sales are threatened. I didn't realize that B&H sold watches. The Swiss watch industry has been vigorous in their desire to control the entire vertical market for decades. In other countries it is easier to prohibit unauthorized dealers from selling their watches, or anyone selling at prices below the prices fixed by the manufacturer. In the US this kind of monopolism is illegal, so they have relied on copyright laws -- they copyright the design of their dials, cases, bracelets, etc. and prosecute unauthorized dealers for infringement. Leica is the only camera company I know which has successfully done the same thing in the camera world. Leica prices are set in Solms, Germany. If you are an authorized Leica dealer and you sell for less than list price, you lose your authorized dealership. Of course Leica is a tiny manufacturer compared to the Japanese companies. If Nikon or Canon were to try to resort to these tactics they would lose money on every camera they sell. Imagine how much it would cost Canon to track down unauthorized dealers, or dealers who discount their prices. You can buy a Canon or Nikon from the corner grocery store and the manufacturers will be happy to have the sale. |
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Grey market ruled against
On 2010-12-15 09:33:50 -0800, shiva das said:
In article , Rich wrote: http://forums.dpreview.com/forums/re...ssage=37180618 Poor B&H. Half their sales are threatened. I didn't realize that B&H sold watches. The Swiss watch industry has been vigorous in their desire to control the entire vertical market for decades. In other countries it is easier to prohibit unauthorized dealers from selling their watches, or anyone selling at prices below the prices fixed by the manufacturer. In the US this kind of monopolism is illegal, so they have relied on copyright laws -- they copyright the design of their dials, cases, bracelets, etc. and prosecute unauthorized dealers for infringement. ....and therein lies the problem with this ruling. Where is the copyright established? The Swiss watch manufacturers have a well documented catalog of copyrighted designs. So a TAG Heuer, bought at Schipol airport, a Rolex bought in a Geneva boutique, or an Omega bought in California, even one bought in Cairo. If being one of the current, or back catalog of copyright designs would be sold, serviced, and warrantied at authorized dealerships and service centers Worldwide. The Swiss origins and designs are established. The issue is non-franchised vendors reselling genuine watches not obtained through the US importer/distributor, grey market if you will. The franchise holders have an expectation of local exclusivity, and support from the manufacturer to protect that exclusivity, otherwise, why buy into the franchise in the first place? So it seems Costco was importing Genuine Omega watches from Paraguay and Egypt for resale in the USA, undermining the established Swiss-US Swiss watch distribution system and purchased franchises. They were apparently legitimately purchasing these watches wholesale from the Paraguayan and Egyptian, importers and distributers. Costco to legitimately sell these watches in the US would need to enter into a dealership arrangement with Omega. Once you move into the area of that other high ticket item, exotic cars, you will find a similar problem. Those dealerships of Ferraris, Bentleys, Morgans, etc. expect a degree of regional exclusivity, and are going to enlist the aid of the manufacturer to protect that exclusivity. These watches are no different. How this ultimately translates to photographic equipment remains to be seen. I doubt that Costco is going to be able to sell grey market Nikon, Canon, Sony, etc. in the US and have the US distributers honor warranties on those sales. I am sure there was no such problem with the watches. Leica is the only camera company I know which has successfully done the same thing in the camera world. Leica prices are set in Solms, Germany. If you are an authorized Leica dealer and you sell for less than list price, you lose your authorized dealership. Of course Leica is a tiny manufacturer compared to the Japanese companies. If Nikon or Canon were to try to resort to these tactics they would lose money on every camera they sell. Imagine how much it would cost Canon to track down unauthorized dealers, or dealers who discount their prices. You can buy a Canon or Nikon from the corner grocery store and the manufacturers will be happy to have the sale. Provided that Canon, or Nikon was placed in that corner grocery store by the local authorized Canon, or Nikon importer/distributer. There is still nothing stopping high volume outlets such as Bestbuy, Costco, or even B&H from negotiating lower wholesale prices on large quantities, and/or soon to be discontinued items, provided they play within the Byzantine rules of commerce. -- Regards, Savageduck |
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