Tuesday, 8 December 2009

Perfume industry – a Mexican business that does not smell right!

In Mexico, the volume of counterfeit perfumes is superior to genuine ones. According to William Hidalgo, National Chamber of Industry of the Perfumes and Cosmetics (Canipec)’s president, reveals that data collected from suppliers of raw materials and packaging, producers, traders and official sources indicated that between 55% and 60% of items on offer are out of formality. This situation hits heavily the fragrance industry since the formal market of perfumes and fragrances is valued at 12 billion pesos.

Mr Hidalgo informed that between 2008 and 2009, the Attorney General's Office (PGR) alleged to have confined more than 400 tons of fragrance of illegal origin. The main practices identified, he continued, is the filling of bottles of original brands, piracy, theft, auction stale perfume and contraband.

Smelling something fishy:
Canipec asserted that they sent to the Asset Management and Disposition Agency(SAE)a letter requesting the destruction of over 400 tons of illegal perfume, but has received no response about what will be the destination of the goods.

The version of the SAE is the opposite. They explained that they have received lots of goods transferred by the PGR in the past two years and some of them containing perfumes, among a diverse range of items. However, the perfumed total was 184.3 tons. The perfumes were auctioned off and they have informed the Canipec.

Usually, the SAE place the products they have received to the market through auctions. However, Mr Hidalgo complained that this act “would legalize what is illegal," and moreover, it is unfair competition.

I really do not like the smell of this! The Institutions should be working together against piracy. Collaboration is needed between different sectors to combat illegal practices. In that way they will be smelling success.

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