They argue that cheap parallel imports are ultimately harmful because they reduce firms incentive to invest in their brands or in after-sales service. These arguments are self-serving. Parallel imports are legal in America and within the EU , yet consumers do not visibly suffer. On the contrary. Parallel imports increase competition for brand-owners and retailers, which leads to lower prices.
Consumers also get more choice.
When they genuinely value such a service, unofficial retailers such as Tesco have as much incentive to provide it as official distributors. The risk of counterfeits is also a red herring. Legalising parallel imports of genuine Nike shoes does not mean allowing in fake ones as well. But firms would still have an incentive to invest the fear of losing market-share. Fiercely competitive markets such as America s are associated with more spending on brands, not less.