SR 6 bn fake goods are sold annually

SR 6 bn fake goods are sold annually
Updated 29 March 2013

SR 6 bn fake goods are sold annually

SR 6 bn fake goods are sold annually

An estimated SR 6 billion in counterfeit electrical products are sold annually in the Kingdom, according to a committee at the Jeddah Chamber of Commerce and Industry (JCCI).
The market for these inferior goods was thriving because of the huge profits involved.
“A trader gets 200 percent profit when a counterfeit device is sold while an original piece fetches only 15 percent profit,” said Muhammad Al-Ahmari, a member of the JCCI committee.
The imitation products, which carry stickers claiming to be original, are sold at the price of original products, particularly in areas away from the major cities, Al-Ahmari said.
He said China, a major source of cheap goods, has a number of companies manufacturing goods of excellent quality at cheap prices. But importers do not import such goods. They rather buy fake goods that are much more profitable, he added.
He commended a new government move making it mandatory for a manufacturer or importing agent to supply a certificate to guarantee the quality of products to be used in government projects, and hoped that the condition would be implemented in the private sector as well.
He said the Customs Department can play a huge role in ending the flow of imitation goods from China and Dubai.
He added that the Kingdom imported SR 10 billion worth of electrical products annually while 60 percent of them have been found to be imitations.
He said poor quality goods were the cause of many fire accidents on many occasions, a local daily reported on Tuesday.
In another development, the Riyadh Chamber of Commerce and Industry (RCCI) recently organized an exhibition of fake goods commonly marketed in the Kingdom. Apart from electrical devices, the exhibition showcased cosmetics, car spare parts, toys and clothes.
The exhibition, which highlighted the difference between original and fake products, sought to educate consumers about the ways they could be deceived while shopping.
The RCCI previously organized similar exhibitions at various commercial centers in Riyadh to warn people about these products and corrupt traders. Most visitors to such exhibitions, particularly women, wanted to know how to distinguish between original and fake goods and why such goods were widely available in local markets, the daily reported.