Parallel imports of Sony CDRWs continue

Parallel imports of Sony CDRWs are continuing, despite the vendor’s effort

to curb the menace. Though Sony is ensuring that its CDRWs come into India only

through the official distribution channel, there are individual importers who

source these products from European and Gulf countries, where prices are lower

than the Indian market.

Says Rajesh Goenka, Divisional Head, Rashi Peripherals, "At any given

time almost five to 20 percent of the products in the market are from the

parallel channel, depending on the number of consignments imported." He

adds that while Sony can track distributors selling the products outside their

territories through serial numbers on the product pack, it cannot control

individual importers, as it is not illegal to buy from overseas distributors.

Gulbir

Bhatia of Prime ABGB says that the price difference in the authorized and

parallel channel is the primary reason why these imports continue. A parallelly

imported Sony CRX175 CDRW is available for Rs 3,300, while the official selling

price is Rs 3,550. Another authorized dealer says that at times he has purchased

from the parallel channel because of this price difference. "I would rather

buy from a known importer than lose a customer for a few rupees," he quips.

Ketan Gala of Spectrum Computers says that the authorized distributors are to

blame for the price difference in the market.

According to him distributors get a margin of 15 percent while dealers earn

only one to 1.5 percent margins. "If the distributors reduce their margins,

then the gap in the pricing of the parallel and authorized products will drop.

This will make parallel imports infeasible and our business will be

safeguarded," he points out.

However, Sanjay Gupta of Microhard says that his business has not been

affected by the parallel imports. My buyers are willing to buy genuine products

where they will get proper warranty support for a higher price." In fact he

adds that his sales have doubled from 500 units in June to 1,000 units in July

2002.

VINITA BHATIA