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Why is it important to prevent cross-country goods?

by:LG Printing     2021-04-25
What is anti-smuggling? Many people are curious about this question. In fact, it is not difficult to understand. Anti-smuggling is to prevent the goods from area A from circulating in area B. Then someone will ask, if the goods in area B are cheaper than area A, then it is not; it benefits our consumption. The person? That's right, but if you think about it carefully, if there is a stray stock in the market, the impact on the market will be very large. For manufacturers, they will be forced to regress again and again by dealers and agents. The impact of retreating to the back will be the closure of factories and the laid-off of workers, which will cause great trouble to the society, and it will break the balance of the market. So let's talk about the importance of anti-smuggling in detail today, we must look carefully!

   First of all, what is anti-smuggling?

   Anti-smuggling refers to the phenomenon that the distributors transfer the goods to a non-sales area for sale without the permission of the manufacturer, that is, the goods sent by the manufacturer to the place A appear to be sold in the place B.

  Secondly, what are the hazards of anti-smuggling?

  1, market price

  A key to channel management is to maintain a reasonable price system, to ensure the stability of prices at each level, and to prevent and limit any behavior that may cause price confusion. For large enterprises with a large number of channel members, maintaining the uniformity and stability of prices is a huge challenge. And fleeing goods will fundamentally disrupt the price system of the company's entire distribution network, triggering a price war. Once a price war is triggered, the harm to businesses will be unimaginable.

  2. Manufacturers' profits decline

   The usual routine for distributors to sell products to other regions is to lower the price below the price set by the manufacturer. But sometimes manufacturers can’t eliminate the dealer’s accumulation

Sex, it will make up the price difference or rebate for the distributor to make up for the loss of the distributor, but doing so will inevitably affect the profit level of the manufacturer.

  3. Dealer's level of integration

   The direct driving force for dealers to sell a certain brand of products is profit. Once there is a price disorder, the dealer’s normal sales will be severely disrupted. The decrease in profit will make the dealer lose confidence in the brand, lose its proactiveness and give up sales this product. Once abandoned, the profits of the manufacturers will be greatly reduced, which means that another group of people will be unemployed.

  4. Consumer loyalty

  The chaotic price will cause the company’s products to lose the trust and support of consumers. Consumers will doubt the reliability of the company, and thus whether their products are fake or inferior. If they go on for a long time, they will not buy it again. The products of this company.

  5. Brand

  In the era of brand consumption, the premise for consumers to buy goods is trust in the brand. The price confusion caused by the fleeing of goods will damage the corporate image. Once the brand image is not enough to support consumer information, the company's strategy of brand management will be disastrous. The market is facing the shrinking or degrading of false prosperity. If this goes on, it will take advantage of competitive brands.

   The losses caused by the swindling of goods to the enterprise are undoubtedly huge. The existence of stray goods is to provide a very good opportunity for the counterfeiting industry, and it also brings a very large loss to consumers. Think about it, spend it For the same amount of money, if you buy a fake product that is substandard, has it caused a loss to your economy? What if you are allergic to it? Do you have to go for medical treatment? This will undoubtedly bring you physical and financial losses. Therefore, the editor feels that anti-counterfeiting and anti-smuggling is really very important, whether it is for companies or consumers.

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