Importing a product, but retaining a level of exclusivity

Cianos

Hi folks,
I wanted to get some help on this one. I am looking to import some bicycles in to Germany and want to sell them under my own brand/website/store. The bikes are a very specific type and only a handful of shops in the locality sell them and those that they sell are way more expensive than what we'll be supplying.

We are looking at stocking local bikes shops with these bikes as part of our sales strategy - to expand our reach across the market and reach more customers. It could really improve our sales.

The problem is, if we were to do this and sales were to go well, there's nothing stopping these bike shops from placing their own import orders and cutting us out of the equation.

So I'm wondering would anyone have any tips on how to go about this? There's no way we can get exclusivity on imports with the supplier, and even if we could there'd be alternative manufacturers anyway.

Thanks for any help

antoinolachtnai

You should try, you might be able to get exclusivity for the brand, and then promote and manage that brand.

Retailers are more conservative than you might think. They'd rather stick with a brand that has become known in the market and which they can depend on for support, rather than moving on to something unknown just because it is cheaper.

Kepler Wessels

You can stipulate your terms of exclusivity and bind them with a contract. If they agree you can open a line of credit and market the goods. Generally they work if you route it through your govt official channels like Trade delegations or Ambassadors. Your volume must be tempting them to commit.

Ian Pick

You can achieve by making the manufacturer to sign a non-competition agreement for no direct or indirect supplies any one in your country. Make sure you have enough market potential and guaranteed success to stop the manufacturer from looking out elsewhere.

RUDOLF289

Cianos wrote: »

Hi folks,
I wanted to get some help on this one. I am looking to import some bicycles in to Germany and want to sell them under my own brand/website/store. The bikes are a very specific type and only a handful of shops in the locality sell them and those that they sell are way more expensive than what we'll be supplying.

We are looking at stocking local bikes shops with these bikes as part of our sales strategy - to expand our reach across the market and reach more customers. It could really improve our sales.

The problem is, if we were to do this and sales were to go well, there's nothing stopping these bike shops from placing their own import orders and cutting us out of the equation.

So I'm wondering would anyone have any tips on how to go about this? There's no way we can get exclusivity on imports with the supplier, and even if we could there'd be alternative manufacturers anyway.

Thanks for any help

Hello Cianos,

Would need to know a bit more about your proposed venture. I am a freight forwarder and in the past have dealt with clients that sourced product outside the EU and delivered directly to the (end) client. We had to make sure that the (end) client was unable to trace the supplier, so all documentation was controlled and did not go forward to the (end) client. We customs cleared the goods in the name of our client on the suppliers invoice. We inspected the incoming shipment and removed any packing slips on the packaging. If required, we re-packed the consignment to ensure that no markings that enabled to trace the source remained.

Assuming that the bikes come from outside the EU, have you classified the product from a customs point of view ? Are you happy that you have the correct rates of duty ? Please bear in mind that bycicles ex China and Vietnam, in addition to the standard rate of duty of 14%, carry an (additional) anti dumping duty of 48.5% (China) and 49.3% (Vietnam). From Vietnam with a GSP certificate the standard rate of duty is reduced to 10.5%.

We could ship the product to Rotterdam, clear them in your name, inspect the packing and make sure there is nothing to identify the source of the product and deliver them to individual shops in Germany.

I would be happy to meet with you and discuss the various ins and outs of the process. Feel free to drop me a PM with your contact details.

Best regards,
RUDOLF289