Products that do not make it into the South African market through approved dealer channels are simply not good enough. Not only are such products introduced without the appropriate duties being paid upon them, but they also have no warranty or guarantee backing them, with the upshot that unsuspecting consumers might find themselves with a dud and no recourse.
That`s according to online retailer Digital Planet, which has taken a strategic stance not to sell so-called grey products, even though these might enter the market at a lower price.
According to general manager Warren Moss, customers should not be lured by the promise of cheaper prices. "All too often, consumers are tempted into buying grey product that has entered the market through unofficial channels. While it is the same product, should any problems occur, that customer risks having the warranty or guarantee on the product waived by the manufacturer and its representatives," he says.
Moss says those distributors and suppliers that are conducting business under the auspices of the manufacturers not only have the necessary expertise to support the products, but are also paying the relevant duties as required by legislation.
"Vendors conduct strict evaluations of such dealers before appointing them as official agents. Among the requirements is the capacity to provide spares and expertise to repair or replace any faulty or defective merchandise, or replace such merchandise if necessary," he explains.
Moss says grey product is an ongoing problem in SA, with a significant proportion of electronic goods being imported and sold at cheaper prices, which is adversely affecting legitimate pricing structures.
"Digital cameras and Apple iPods account for a large proportion of the grey goods; however, any customer considering buying unauthorised product must understand that the concept of `caveat emptor` - buyer beware - applies," says Moss.
"These products are sold at a lower price point because the applicable duties and taxes have not been paid, while the so-called international warranty will not be supported since the product wasn`t bought from a locally authorised dealer," he adds.
Malcolm Ryan, general manager of Teltron, which imports a range of photographic equipment, notes that the authorised channel cannot honour international warranties on grey products.
"Equipment that has come into the country through the grey market has effectively avoided the duties and taxes that must be paid when importing goods. It is illegal for us to repair such products, so customers are advised to avoid acquiring such goods. If there are faults or the product breaks, they may well have an expensive but useless piece of equipment," he says. As such, he says customers should insist on a local warranty.
Digital Planet has assigned a `Stamp of Approval" to all products on its Web site which are certified to have been procured through the recognised suppliers, and includes almost 100% of the merchandise on offer. This initiative is in an effort to help consumers to rapidly recognise legitimate goods.
Digital Planet will partner with local representatives of the major brands to put together an advertising campaign to promote using products imported through the correct channels.
Moss anticipates that other major retailers will follow the example set by the company. "We believe it is necessary to support businesses that work within the import and distribution laws of the country and we will actively avoid supporting importers who don`t," he concludes.
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Digital Planet, SA`s leading online store with its wide range of electronic products now including consumer electronics, is your one-stop-shop when it comes to convenience, price and service. You can now buy computing and consumer electronics, from PCs and laptops to TVs and fridges, from Digital Planet`s brand stores at lower prices than standard retails stores are currently offering.
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