WHY IS IT THAT THERE ARE AUTHENTIC WATCHES SOLD WITH NO MANUFACTURER’S WARRANTY ON-LINE?

Almost all Warranty for branded goods only work in the country of purchase. The reason is because all brand owners; such as LV, Prada, Nike, Seiko, BMW, IBM etc issue their dealership or agency base on territory. That is the respective dealers or agents who are legally allowed to sell the products in a country or territory and this is only entitled to them. So No authorized dealers or agents are allowed to sell the products to another country – ie NO EXPORT (to protect the other dealers in other countries) or selling them online to a buyer from another country. He can sell it to a foreigner in his country but he cannot export it out.

Next, no dealers would like to service something that was NOT sold by themselves (imagine you have a shop, and 1 customer walks in to your shop and ask you to service an item that he did not buy from you for FREE; what would you do?). Most agents or representative will NOT honor the warranty for a product that is brought online from another country (except Dell computer because they do not have agents/dealers/middleman).

So why buy online from sellers in another country?
Main reason – Cost Saving due to price difference. Because of different taxation and cost of living etc, the selling price for the same product could be 1.5 times or double in some country. The local dealers need to have about 20-25% margin themselves and they must give another 35-50% margin to their retailers; so in the end they have to price the product 1.5 – 2 time or more.

So where does GREY products come from? Grey Market
Ironically, it comes from the authorized dealers and agents. What the dealers/agents do is to sell the products to another company in their territory and then that company export the products out to importers from other countries. Commonly known as parallel export and import. Usually the quantity is huge and at higher discount. Under this arrangement NO dealers/agent will want to issue the warranty card to avoid infringing their contract – So –Watches are still authentic but there is NO warranty. So you want all authentic watches? Shop in these Ebay stores. Just click the flag of your country. Cheers!

 

 

 

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