Brand Opening Up Emerging Markets Should Adapt To The "Hidden Rules".

< p > at the moment of brand globalization marketing, the brand is facing not only the outward extension of the sales market and manufacturing base, but also the "hidden rules" of different customs.

< /p >

< p > if you want to sell your products in India and quickly open up this emerging market, the brand may have to spend a lot of money on the relationship between the parties, otherwise it will be faced with the risk of closing stores. In Vietnam, importing counterfeit brand products can also be safe through legitimate channels, so luxury brand stores will choose to falsely report genuine products as cheap Chinese Shanzhai products to clear taxes and evade taxes.

< /p >

< p > < strong > the India market to open a shop is to bribe the market < /strong > /p >

< p > Hongkong entrepreneur Ramesh Tainwala has spent 18 months running brand a target= "_blank" href= "http://www.91se91.com/" > clothing > /a > in the India market. For such a long time of investigation, he understood one thing: if we want to start business successfully in India, no bribery will not work.

< /p >

< p > the fifty-five year old businessman once owned the franchise of American fashion brand Guess, Nautica and British retailer Next and Debenhams in India.

But last September, he sold them to India enterprises.

< /p >

P, citing foreign media sources, Tainwala, who is now president of Samsonite, Asia Pacific and West Asia, is reluctant to say, "it is impossible to do business in India but not to bribe in the market in India".

He claimed that he himself had refused to bribe officials who had power to issue business licenses in the past.

< /p >

< p > as the next battleground for retailers to seize, the retail market in India has reached US $500 billion and is growing at an annual rate of 20%.

At present, the market is still dominated by small shops. The world's retail giants such as WAL-MART (Wal-Mart) and IKEA (IKEA) finally gained the right to enter last year through hard work.

< /p >

"P >" but a daunting series of "licenses" compels retailers to pay so-called "fast money" through middlemen or local partners, and a traditional supermarket wants to open at least 40 kinds of licenses in India.

Shelves, window advertisements, posters and so on require separate licenses.

Do you want to play music in the store? Get the license first.

< /p >

< p > "there are many departments involved in it. It is puzzling to have a license to open a shop."

The Samsonite executives complained.

< /p >

< p > it is precisely the process of obtaining many licenses from the above various licenses that breed many bribes, which virtually increase the operating costs of retailers and weaken the profit margins.

At the same time, it also increases the risk of enterprises, because bribery in India and other emerging markets is often illegal in other markets.

< /p >

A senior executive named "P" > a target= "_blank" href= "http://www.91se91.com/" > shoes < /a > brand Clarks also said that the company has applied for an annual business license since 2012 and has not been approved so far.

Clarks's plan is to open five shops in India, three of which need to obtain a license. Clarks is required to pay 60 thousand rupees to each of the 8 shops that need to obtain a license. Each shop needs to pay 500 thousand rupees in order to obtain the license, while the official fee is 6000 rupees per store.

< /p >

< p > < strong > true chaos false > /strong > /p >

The cost of bribing "P" and various "licensing" breeds the helplessness of high-end brands in India.

In another luxury emerging market Vietnam, shopkeepers of luxury brand stores try to evade import tariffs by various means.

< /p >

< p > unlike other manufacturers who illegally manufacture or sell luxury goods, they sell authentic handbags at Gucci (Gucci) and Milano stores in Hu Zhiming.

However, in order to avoid the import duties, the two shops lied about the products from Shanzhai cheap goods from China, each worth less than 7 dollars.

In fact, the products of the stores are imported from Italy and then pported to Vietnam by Hongkong.

< /p >

< p > November 2012, local police seized four trucks loaded with Gucci, Docle&Gabbana brand handbags, and a target= "_blank" href= "http://www.91se91.com/" > clothes "/a" and so on. They were heading to the two stores in the warehouse of Sheraton Saigon Hotel basement.

The survey found that these goods were imported by a company called Nam De Company in Hongkong, and then each item was made in China and cleared at the price of 1.8~7 dollars.

< /p >

Police officers from an Economic Crime Investigation Bureau told Vietnamese local media that the price of goods displayed in the two stores was millions of Dong Dong, but they did not indicate that they were produced in Italy. < p >

The turnover of the two stores in 2012 exceeded 12 billion Dong Dong (about 571 thousand and 500 US dollars).

Three customs officers were suspended for collusion on tax evasion.

< /p >

Ta Giang Linh, one of Vietnam's luxury market suppliers, was also found by customs to import goods from Gucci and Saint Laurent (Yves Saint Laurent) in the same way from Italy and France. It only paid US $more than 2500 in import duties, and in accordance with the actual value of goods over 190 thousand dollars, it had to pay more than 76 thousand dollars in customs duties.

< /p >