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Dell Takes On Parallel Importers


 By Ramdas S, CRN, February 6, 2012, 1030 hrs

Dell is taking the legal route to counter parallel imports. The Indian arm of the IT giant has been plagued over the past years with large quantum of laptops, desktops, and even servers being imported through parallel channels.

 

This had resulted in confusion among both channel community, as well as among customers, affecting MOP on several Dell SKUs.


“When a brand is popular and demand is high, it is natural that parallel imports of these branded products happen. Initially we contacted the parallel importers and tried educating them. Some of them agreed and had stopped, but there are a few others who still indulge in the practice,” said Mahesh Bhalla, Executive Director and GM, Dell India.


Dell had sent mailers to its partners and had provided them a list of importers who were indulging in parallel imports. The partners were warned and told that Dell would neither support the products, provide service from Dell India service centers, nor would the partner gain benefits in the various rebate programs.


Bhalla said that while 90 percent of channels are aware of the fact the product they buy is not Dell India material, customers are almost always caught unaware. “They often face the issue of not getting the right support, and the brand suffers.”


“We decided to take the legal route. We have informed the office of the Customs and Central Excise on the fact that Dell India is the only authorized entity that can import branded products in the country. Over the last month or so, whenever any entity imports Dell branded products, customs officials do get in touch with us. This we believe will cut down the unethical practice,” said Bhalla.


Bhalla confirmed that products brought in through parallel routes cannot get Dell India warranty. "We urge channel partners to buy only from Dell authorised sources. They can also verify the service tag, to figure out from where the product has originated, and the warranty details."

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Comments
2/16/2012 1:29:18 PM
 
Parallel imports is a reality and I agree with valued comments of Sudhir and Lilesh. More important is the bigger question, that how can in todays global market scenario, one refuse to give support ? An end customer has all the rights to get proper support from Dell whether the product is from India or not. When brand like Apple gives global warranty and proper support to all its customers, such Brands like Dell must support all and rather focus to cut down its price to counter parallel imports.
 
 - Sanjay Chordia,Systematix Media (Imagine),Kolkata
2/15/2012 7:21:29 PM
 
We all indians are used to slavery first of britishers and now it economic slavery of MNC companies which are actually faceless organsiation and we all dont know whom to catch in case of such vexed issues.They have a bigger and better legal team and hence they fight on a bigger platform and in the end we consumer only become suckers or rather get sucked by paying them 30 - 40% higher rate for the sake of getting Dell local Support
 
 - Manoj Singh,SMS Marketing,Kolkata
2/13/2012 11:55:32 PM
 
This is a good move by Dell India. There are few entities ( even some online retailers) who imports Dell products at very less price and sell at least price. This unfair practice kills the margin and brand image of regular distributors and retailers. All the IT product companies should follow this practice started by Dell.
 
 - Hari Rastogi,COO at www.Laptopwale.com,Bangalore
2/10/2012 11:15:32 AM
 
I believe parallel imports are happening only in consumer products, there are so many retailers in India they sell it as Dell India product and more over some of the importers are maintaining there own service centers to give service to the customers, because they are making thousands of margin in selling imported laptop. Importing is not happening in commercial product as because Dell itself is selling very cheaper cost from GCC. my feeling is that Import is not yet stopped, it is still continuing strongly. this can be contained only by pricing.
 
 - Sudarshan Reddy,,Hyderabad
2/7/2012 1:33:27 PM
 
I second Lileshji. I find Dell prices to be 20-30% more than what they offer internationally even after you consider duties....
 
 - Guru Dutt,,Bengaluru
2/7/2012 11:43:31 AM
 
India is not a monopolistic country. There are other Bigger Brands who do not take this route, Why ? And also by doing this, the co. is only encouraging the said importers to focus on other brand/s, thus lossing out.
 
 - Sudhir Jhawar,Topmark Technologies,Mumbai
2/7/2012 9:27:39 AM
 
Parallel Imports do not happen due to high demand.Parallel imports happen when there is huge price gap.Vendors are treating India as a profit centre and selling their products at a very higher rates than other countries of the world.
 
 - Lilesh Khakhra,Crown Trading Co.,Kolkata
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