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Thread: Meaning of Distributorship

  1. #1

    Question Meaning of Distributorship

    Everyone knows that Cathay Photo is the sole distributor of Lowepro bags and accessories in Singapore.

    I know that popular shops like MS Color, AP and TK get their Lowepro bags/accessories from Cathay Photo since the former are dealers of CP for Lowepro products.

    However, I came across a shop at SLS selling Lowepro bags which are imported from overseas. Physical appearance of the bags are exactly the same as CP, only the tags on the bags differ. I strongly believe that the shop bypass CP channel distribution.

    Therefore, in this instance, can Cathay Photo demand the shop to stop selling Lowepro bags/accessories?

    My question is "what kind of rights does a distributor process"?

  2. #2
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    Default Re: Meaning of Distributorship

    Quote Originally Posted by USM View Post
    Everyone knows that Cathay Photo is the sole distributor of Lowepro bags and accessories in Singapore.

    I know that popular shops like MS Color, AP and TK get their Lowepro bags/accessories from Cathay Photo since the former are dealers of CP for Lowepro products.

    However, I came across a shop at SLS selling Lowepro bags which are imported from overseas. Physical appearance of the bags are exactly the same as CP, only the tags on the bags differ. I strongly believe that the shop bypass CP channel distribution.

    Therefore, in this instance, can Cathay Photo demand the shop to stop selling Lowepro bags/accessories?

    My question is "what kind of rights does a distributor process"?
    This is quite similar to parallel importers for cars. Car parallel importers usually bring in models that the local distributor don't carry.

  3. #3
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    Default Re: Meaning of Distributorship

    I think, the sole distributor had paid a premium to attain this edge over the market, so no one should bypass this channel without their knowledge.

  4. #4

    Default Re: Meaning of Distributorship

    Quote Originally Posted by redstorm View Post
    This is quite similar to parallel importers for cars. Car parallel importers usually bring in models that the local distributor don't carry.
    No, in this instance, the shops are selling the same models as Cathay Photo.

    Yes, I do agree with you if Cathay Photo decided to drop certain range of Lowepro products, then it would be ok for other shops to bring them in via the parallel import channel.

  5. #5

    Default Re: Meaning of Distributorship

    hmm..can draw a parallel with grey market lenses? eg. if canon singapore is the sole distributor of canon lenses, what can they do to stop import of grey market lenses? so far the only action they have taken seems to be cut prices significantly.

  6. #6
    Senior Member Big Kahuna's Avatar
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    Default Re: Meaning of Distributorship

    My ex-company was a sole distributor of an IT part in this part of the world(SEA) and the principal from US has agreed that they will not sale to another company if we can fulfil their annual quota.....however they do not have power if another company decided to bring in from their other distributor from other region such as Australia or Japan

    In this case the ordering and RMA of this item has to go back to the distro there and then ship to US.....in a way their cost is also higher becaase it changes two hand

  7. #7

    Default Re: Meaning of Distributorship

    Get from Cathay Photo. If there is any problems, you can go back to Cathay Photo to change it. That is the exclusive distributor. I had a problem with my Computrekker after using it for only 3 months (bought it from Alan Photo). It had a tear on the strap which was cause due to poor manufacturing. Brought it back to CP (with Alan Photo receipt) and no question ask.

  8. #8
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    Default Re: Meaning of Distributorship

    Quote Originally Posted by nikontiger View Post
    I think, the sole distributor had paid a premium to attain this edge over the market, so no one should bypass this channel without their knowledge.
    My company oso the sole distributor for a jap product. No nid pay premium, only agreement on the volume and price.

    We never trust this distributing thingy. If another company comes in and promises to take in a certain volume every month at a price that company will definitely give them the distribution right as well.

    Maybe photography stuff different ... dunnoe just sharing. Dun flame me tks
    陳綺貞 2010 [夏季練習曲] 巡迴演唱會 Cheer Concert 13 Nov 2010 MAX Pavilion@Singapore Expo

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    Default Re: Meaning of Distributorship

    Quote Originally Posted by Static View Post
    ....
    Maybe photography stuff different ... dunnoe just sharing. Dun flame me tks
    Too Late!!

  10. #10
    vince123123
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    Default Re: Meaning of Distributorship

    Assuming the products are genuine products, CP cannot stop anyone from selling Lowepro bags which were not gotten from them.

    A sole distributor just means that the manufacturer will not supply the products to anyone else who is also located in that territory.

    However, if a parallel importer buys products from the manufacturer in another territory, and brings it into the first-mentioned territory, then the exclusive distributor of the first-mentioned territory can't really do anything.

    The world is becoming smaller today, and this is the result of things.

    Quote Originally Posted by USM View Post
    Everyone knows that Cathay Photo is the sole distributor of Lowepro bags and accessories in Singapore.

    I know that popular shops like MS Color, AP and TK get their Lowepro bags/accessories from Cathay Photo since the former are dealers of CP for Lowepro products.

    However, I came across a shop at SLS selling Lowepro bags which are imported from overseas. Physical appearance of the bags are exactly the same as CP, only the tags on the bags differ. I strongly believe that the shop bypass CP channel distribution.

    Therefore, in this instance, can Cathay Photo demand the shop to stop selling Lowepro bags/accessories?

    My question is "what kind of rights does a distributor process"?

  11. #11
    Member tim's Avatar
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    Default Re: Meaning of Distributorship

    Agreed with vince123123 on the above.

    I am in Sale/Distribution of comsumer product for about 20 year, every now and then the distributionship change hand due another party willing to offer higher quantity target.

    And regarding third party also import the same products; I have seen two cases that went to court. One was a famous car audio product, the other is the famous 'REMUS' exhaust system (I mentioned the brand becos' it was mentioned in the newpaper). The two Sole-distributor lost the case, as long as the product bought in are original and not fake then anyone can bring in becos' Singapore is a free trade country.

    Cheers

  12. #12
    vince123123
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    Default Re: Meaning of Distributorship

    For those of you who are inclined to do further research, the second case tim is talking about is here:

    Remus Innovation Forschungs-Und Abgasanlagen-Produktionsgesellschaft mbH and Another v Hong Boon Siong and Others [1999] 1 SLR 179.

    I'm not sure about the first case though.

    Quote Originally Posted by tim View Post
    Agreed with vince123123 on the above.

    I am in Sale/Distribution of comsumer product for about 20 year, every now and then the distributionship change hand due another party willing to offer higher quantity target.

    And regarding third party also import the same products; I have seen two cases that went to court. One was a famous car audio product, the other is the famous 'REMUS' exhaust system (I mentioned the brand becos' it was mentioned in the newpaper). The two Sole-distributor lost the case, as long as the product bought in are original and not fake then anyone can bring in becos' Singapore is a free trade country.

    Cheers
    Last edited by vince123123; 8th June 2007 at 12:35 PM.

  13. #13

    Default Re: Meaning of Distributorship

    Quote Originally Posted by vince123123 View Post
    Assuming the products are genuine products, CP cannot stop anyone from selling Lowepro bags which were not gotten from them.

    A sole distributor just means that the manufacturer will not supply the products to anyone else who is also located in that territory.

    However, if a parallel importer buys products from the manufacturer in another territory, and brings it into the first-mentioned territory, then the exclusive distributor of the first-mentioned territory can't really do anything.

    The world is becoming smaller today, and this is the result of things.
    Thanks vince123123 for sharing the insight.

    I guess that there is no need to pay any distributorship fee at all since you can always get it from other countries and bring them back to Singapore to sell.

  14. #14
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    Default Re: Meaning of Distributorship

    what vince said is true. As for whether u pay any distributorship fee, thats depending on the parties. It could very well be Lowepro pay CP money even.. all depends on the terms and relative bargaining powers.

    Also, not all parallel imports for cars are different model. Some are same model, just different names.

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