During my strolling in the typical market of Eminonu Square, I crossed the below 2 small kiosks selling different products. When you get more close, you can discover the many brands available like Gillette, Duracell, BIC, Energizer, Schick, Panasonic and you will be surprised with the prices.

I guess parallel business has been around this market too …

tr_gillette1.jpg

tr_gillette2.jpg

Many brand owners and multinationals does not really appreciate the word “Parallel”, because in the business world, it has nothing to do with mathematics. Parallel business have been present since forever in many products categories mainly FMCG (fast moving consumer goods), it is also called Re-Export, Grey market or Triangular business.

I have worked in the Parallel world for quite many years, where you will be astonished how business is ran and the quantities of goods that are moved every year from country to another and the incredible prices at which these goods are offered, sometimes you can buy a product below the cost of a local distributor, of course when I say you can buy, I mean large quantities, pallets or containers.

For many years, multinationals tried to fight the parallel business by coding their goods for each markets, differentiating sometimes brand names or even changing some layouts, offering different sizes of the same product with different price structures for each market, focus on heavy promotions, etc… and this never stopped the parallel of growing year after year.

saralee_logo.gif
Sara Lee is a multinational with a Body Care division, 2 of their many worldwide known brands are Radox and Mon Savon.

During my visit to Prague last week and while strolling in a retail shop, the price of a Radox shower gel flashed into my eyes, while I am used to buy almost the same products from Mon Savon for a cheaper price in Lebanon. Below is a comparison table showing the price difference between the 2 products.

Country Czech Republic Lebanon Difference
Product Radox 250ml Mon Savon 250ml
57%
Local Price 59.90- CZK 1,775- LBP
Price EUR 2.13- EUR 0.90- EUR
Price USD 2.75- USD 1.17- USD
Conversion of currency based on today’s rate using XE.com

You can also check the packaging which are almost similar and the sales tickets from Tesco for Radox and Géant for Mon Savon.

radox_monsavon.jpg ticket_tesco.jpg ticket_geant.jpg

So the conclusion of the above is that the multinationals are sometimes blessing the parallel indirectly and this is how new parallel business is born everyday!