Parallel Import vs Authorized Distributor for Cosmetics

Parallel import vs authorized distributor is not a question of genuine versus fake. Cosmetics from either channel can be genuine; what differs is whether the brand approved that route to market, and who is responsible for labels, after-sales support and price control.

An authorized distributor buys under a contract with the brand. A parallel importer buys genuine goods that were sold legitimately in another market and imports them without the brand’s involvement.

For a retailer or importer, neither route is automatically better. Each comes with a different set of assurances and gaps, summarised below.

Parallel import vs authorized distributor for cosmetics: comparison table

Swipe sideways to see the whole table.

Authorized distributors: the brand-approved route

A brand appoints a distributor for a country or region and supplies it directly. The contract usually brings label localisation, regulatory support in the destination, marketing assets and a defined process for defective goods. In exchange, the distributor normally follows the brand’s pricing and territory rules.

At SEONGWOO GLOBAL, four brands are supplied as Official Distributor: PINKWONDER, Arocell, Carenology95 and irecipe. For those brands, stock moves through a route agreed with the brand itself.

Parallel imports: genuine goods outside the brand’s contracts

A parallel import, sometimes called grey-market goods, is a genuine product that was put on the market legitimately somewhere and then resold across a border without the brand’s consent to that second movement. It is entirely different from counterfeiting, where the product itself infringes the trade mark.

Whether parallel imports are lawful depends on the destination’s trade mark law:

• Hong Kong follows international exhaustion. Section 20 of the Trade Marks Ordinance (Cap. 559)¹ means that goods put on the market anywhere in the world by the owner, or with its consent, can generally be resold without infringing. The exception is where the condition of the goods has been changed or impaired in a way that harms the mark’s reputation, as explained in OLN’s commentary. That is why genuine parallel goods (水貨) sit alongside authorized goods (行貨) in Hong Kong retail.
• Korea sets the rules for customs in Article 5 of Korea Customs Service’s notice on import and export clearance for IP protection². Importing goods made by a party entitled to use the mark is not treated as infringement where, for example, the domestic and foreign trade mark owners are the same or related (affiliates or import agency relationships). Where a domestic owner unrelated to the foreign owner only manufactures locally, imports can be treated as infringing, so not every parallel import is cleared.
• The EU applies exhaustion within the European Economic Area under Article 15 of the EU Trade Mark Regulation³, so goods first sold outside the EEA can be blocked by the mark owner.

Trade mark law is only one layer. Cosmetics law applies to every importer regardless of channel: the person placing the product on the market must still meet local labelling, notification and safety obligations.

What to check before you buy

• Proof of origin: whichever route, the supplier should be able to explain where the goods came from, and invoice details should match batch numbers on the products.
• Labels: agree who will make the label compliant for your market. Our guide to Korean cosmetics label requirements explains what the Korean label legally contains.
• Export or domestic version: the same product can carry a Korean domestic label or an export label; see export vs domestic version cosmetics.
• After-sales: write down who handles damaged or defective goods and recalls.
• Sales channel rules: some online marketplaces restrict sales of certain brands without brand approval, so check the platform’s policy before you order.

The choice of channel connects directly to whether you buy from a brand or a wholesaler. See buying from the brand vs a wholesaler and B2B marketplace vs direct supplier for the next step.

Related reading: Export vs domestic version cosmetics · Brand direct vs wholesaler · B2B marketplace vs direct supplier

Site pages: Brands · FAQ · Contact us