Distributing a new product

Overthrow

I'm aware of a new product that's hitting the shelves in the US that really has the 'wow' factor, and it's quite reasonabley priced.

The .ie of the product name (eg the equivalent of adidas.ie) is still available, which has given me the idea of setting up a site and selling to the Irish market. The .co.uk is taken, and obviously the .com too.

Do I need the company's permission to do this? Would I need to get distribution rights, or can I just go ahead and register the domain and buy the stock and go from there?

I was thinking it'd be ideal if I just got the sales and they or someone else could handle the shipping, but they probably wouldn't be interested in looking after the relatively low volume compared to what they'd be getting in US retail stores.

Thanks for any advice.

OU812

You can't register their product name as a domain without their permission.

If they haven't registered the .ie domain, they're probably well aware if how small the market is here (figuring people will buy from the .co.uk if in demand).

You could ask for distribution rights but they're likely to be expensive.

What area is the product in - fashion/kids/auto/etc? As this may limit the potential market greatly or there could be a distributor in place already.

Overthrow

OU812 wrote: »

You can't register their product name as a domain without their permission.

If they haven't registered the .ie domain, they're probably well aware if how small the market is here (figuring people will buy from the .co.uk if in demand).

You could ask for distribution rights but they're likely to be expensive.

What area is the product in - fashion/kids/auto/etc? As this may limit the potential market greatly or there could be a distributor in place already.

Thanks for the reply. The product is in the area of D.I.Y & cleaning. It would be best served by a good site showing video demonstrations, which is why I think a dedicated .ie would do well, as it's really only through video that you can see how 'magical' the product is.

OU812

You could register the domain in the knowledge that you may have to hand it over to them and ten write (including that detail) asking about dust rights for IE.

I suspect though there's already a distributor in place for retail here from the UK. It's a relatively small market - woodies/Atlantic/B&Q so is probably being serviced by a fist already selling into them.

Do a lookup on the .co.uk & see who they are/what they do.

Overthrow

I looked up the .co.uk domain and it was registered in 2008, which would suggest that it's unrelated to the product as it's only just out.

This also means that I could probably purchase the .co.uk from the current owner since it's just an empty page.

Graham

I'm not sure why you would go to the time, expense and effort of obtaining a domain name, developing a site and building traffic/custom given that the domain name could be transferred to the trademark owner.

From what you appear to be proposing it would be almost immediately apparent that your registration of the domain name was in bad faith.

IEDR Dispute Resolution Policy:
2. Evidence of Registration or Use in Bad Faith

2.1 The following factors, in particular but without limitation, may be considered as evidence of registration or use of a domain name in bad faith:

2.1.1 where the domain name has been registered or is used primarily for the purpose of selling, renting, licensing or otherwise transferring the registration to the Complainant or to a competitor of the Complainant, for valuable consideration in excess of the registrant’s documented expenses which are directly related to the registration of the domain name; or
2.1.2 where the domain name has been registered or is used primarily in order to prevent the Complainant from reflecting a Protected Identifier in which it has rights in a corresponding domain name; or
2.1.3 where the Registrant has registered or is using the domain name primarily for the purpose of interfering with or disrupting the business of the Complainant; or
2.1.4 where the Registrant has, through its use of the domain name, intentionally attempted to attract Internet users to a web site or other on-line location by creating confusion with a Protected Identifier in which the Complainant has rights; or
2.1.5 where the domain name is used in a way that is likely to dilute the reputation of a trade or service mark in which the complainant has rights;
2.1.6 where the Registrant has intentionally provided misleading or false information when applying for the domain name registration.

Peterdalkey

If it were me and I was serious about the business opportunity , I would register the business name with CRO and then seek the .ie domain name. At the same time I would be making contact with the producers/brand owners seek the Irish distribution rights.
You can tell them what you have done so far in respect of the domain name and CRO registration, they will at least be aware that you are serious about the product and the business. Worst case scenario you are down only a 100 quid or so but it could be money very well spent, if you get a result!
if it does not work out, offer them your registrations at your costs incurred!

Gambler

To be honest it seems simple enough to me - contact the American company first and see if they are willing to sell you the product wholesale (or ideally give you distribution rights for Ireland, maybe even for the UK and Ireland) and if so would they mind you registering the .ie version of the domain (maybe on the basis that they are willing to buy the domain off you if they ever decide to take over the trademark domain rights in Ireland)

If you just go ahead and register first then ask for permission after there's a chance they will take that as an aggressive move and respond in kind - However if you come to them with a business proposal and outline why it would be a good idea for them to let you proceed then they may be very happy for you to run with it locally..

hardCopy

For me, the priority would be getting a distribution agreement in place. If it's something you can't make yourself then you'll need to get it in from the US at a trade price, otherwise people will just end up buying direct from overseas at the same price you're paying. Ideally you'd want an exclusive deal, the manufacturer may want a minimum annual volume before they will agree to this.

There's no point in you marketing this product as a grey import when all you'll be doing is building a market base for the manufacturer to eventually come to Ireland and sell direct at much lower prices.

ironclaw

Just to chime in, if its a chemical based product, you may want to check if it will pass all the EU regs etc. America has weird and wonderful laws around chemical additives etc. Also, have you used the product yourself? Is it really that magical? In my experience most arn't or are the equivalent of snake oil.

Overthrow

Thanks for the input everyone, a lot of food for thought.

ironclaw wrote: »

Just to chime in, if its a chemical based product, you may want to check if it will pass all the EU regs etc. America has weird and wonderful laws around chemical additives etc. Also, have you used the product yourself? Is it really that magical? In my experience most arn't or are the equivalent of snake oil.

I was reserved myself when I first saw the product videos, but an online community (which is mostly US based) were talking a lot about it because of the promo videos, and since it has been released (a few weeks ago) have been using it and sending back positive reports.

I think the best thing to do is contact the manufacturer and ask about becoming a distributor, and they'd surely know about any associated EU regulations.

Thanks again.

ironclaw

Overthrow wrote: »

I was reserved myself when I first saw the product videos, but an online community (which is mostly US based) were talking a lot about it because of the promo videos, and since it has been released (a few weeks ago) have been using it and sending back positive reports.

I think the best thing to do is contact the manufacturer and ask about becoming a distributor, and they'd surely know about any associated EU regulations.

Thanks again.

US has some seriously lacks advertising laws. I'd try the product yourself first. Do not go on video testimonials etc. That would be madness. Also, most US companies are inward looking unless they are a big multinational so probably don't know themselves about EU regulations. If they were thinking of entering the EU market, they would already be here or at the very least have a foothold. Either way, the onus is on your for compliance as it could just be stopped at customs or worse when you actually sell it your nailed with an environmental fine etc. (I'm presuming its a cleaning product or someone form of chemical based liquid?)

And theres plenty of 'scam' products out there that literally spend €1000's setting up false communities and sites in the hope that others will see the immense positive feedback and be looped in. Its the basis of most of those 'dermatologist' hate her' and 'Energy companies don't want you to know this' type items. So be careful it doesn't fall into that category.

I'm actually interested to know what the product is so be sure to post back.

Overthrow

ironclaw wrote: »

US has some seriously lacks advertising laws. I'd try the product yourself first. Do not go on video testimonials etc. That would be madness. Also, most US companies are inward looking unless they are a big multinational so probably don't know themselves about EU regulations. If they were thinking of entering the EU market, they would already be here or at the very least have a foothold. Either way, the onus is on your for compliance as it could just be stopped at customs or worse when you actually sell it your nailed with an environmental fine etc. (I'm presuming its a cleaning product or someone form of chemical based liquid?)

Thanks for the extra info. Would definitely be trying the product first before setting anything up alright.

If the company currently sold to EU countries, would that indicate that they have gotten approval for the product according to EU laws? By selling to, I mean if I were to order the product via their website and Ireland was not a restricted shipping destination. And would it indicate that an Irish site selling the same product would probably need no further compliancy verification? Just wouldn't want to go down the road of seeking all this approval unless there's good indication there that I'd get it!

And yeah I suppose it could be classed as a cleaning product. There are loads of applications for it, many of which would be for the purpose of hygiene.

And theres plenty of 'scam' products out there that literally spend €1000's setting up false communities and sites in the hope that others will see the immense positive feedback and be looped in. Its the basis of most of those 'dermatologist' hate her' and 'Energy companies don't want you to know this' type items. So be careful it doesn't fall into that category.

I'm actually interested to know what the product is so be sure to post back.

The community I saw it pop up on is very well established. I'd be very surprised if it was all a scam as it genuinely seems to have gotten a good response from many users, posting up their own videos and pics that show the same results. Some of the feedback is negative, such as it discolouring objects a bit and not lasting as long as they would have hoped.

Also it's being stocked by a major retailer in the US as opposed to just being sold from a dodgy website.

AlmightyCushion

I take it you are talking about NeverWet. If so, while it's pretty cool it has some serious limitations. It's quite expensive which isn't actually so bad if it lived up to its hype but it doesn't. It leaves a frosty, white glaze on anything it is applied to so makes things look like crap. Apparently, it isn't very long lasting as well plus detergents and even abrasions will cause it to lose effectiveness. It's a cool concept but in reality it is pretty limited in its usefulness. I imagine most people who buy it will use it just to prick about with it and then leave it in a cupboard. I really wouldn't invest too much time and money in to this unless they iron out some of the problems with it.

Overthrow

AlmightyCushion wrote: »

I take it you are talking about NeverWet. If so, while it's pretty cool it has some serious limitations. It's quite expensive which isn't actually so bad if it lived up to its hype but it doesn't. It leaves a frosty, white glaze on anything it is applied to so makes things look like crap. Apparently, it isn't very long lasting as well plus detergents and even abrasions will cause it to lose effectiveness. It's a cool concept but in reality it is pretty limited in its usefulness. I imagine most people who buy it will use it just to prick about with it and then leave it in a cupboard. I really wouldn't invest too much time and money in to this unless they iron out some of the problems with it.

Yes that's the one. Although I'd have appreciated a bit more discretion in naming the product, if I had my heart set on doing this you would have given my lead away here!

Yes any abrasion will reduce its effectiveness. Still, I think it could be one of those things where a highly specialised application would benefit greatly from it, regardless of its limitations.

I have since discovered that there are similar products on the market already so it mightn't be as revolutionary as I first thought.

ironclaw

Overthrow wrote: »

Yes that's the one. Although I'd have appreciated a bit more discretion in naming the product, if I had my heart set on doing this you would have given my lead away here!

Yes any abrasion will reduce its effectiveness. Still, I think it could be one of those things where a highly specialised application would benefit greatly from it, regardless of its limitations.

I have since discovered that there are similar products on the market already so it mightn't be as revolutionary as I first thought.

With respect, we've been using that in an Engineering basis for quite some time. Not NeverWet but similar products. Mainly to coat circuit boards in electronics.

As the saying goes, if you thought of it then there is probably 50 other people who have as well. Just speed up the inquiry process and get your foot in the door first Best of luck with it.