Looks.com (A) - A Grey Issue

The founder and managing director of looks.com, a soon-to-be-launched Hong Kong based e-commerce site for brand name cosmetics, fragrances, skin care products and fashion aimed at Asian women, had to make a key strategic decision - should he engage in parallel importing? He considered this decision one that would likely have the largest impact on the success, or failure, of his dream. Parallel importing, also known as "grey marketing", involves the legal, though disturbing practice (to many manufacturers and distributors) of sourcing products wholesale from unauthorized distributors. The case issue has universal appeal, given the ever-increasing prevalence of parallel importing throughout the world. Students are introduced to the Internet industry in Hong Kong, and are provided the background information for an in-depth analysis of the positives and negatives of engaging in parallel importing. A short supplement is available: Looks.com (B), 9B00A013.