The Hidden Dangers of Siemens Grey Market Products

The Hidden Dangers of Siemens Grey Market Products

When purchasing products, knowing the risks associated with unauthorised sources and counterfeit products is important. Purchasing products from unauthorised sources can expose you and your customers to serious risks. The risks include no warranty, hidden costs, regulatory compliance, and legal implications, which may result in the possible impairment of sustainable business relationships.

Hidden Cost

Hidden Cost

While grey market products might initially appear cost-effective, it’s important to be aware of the hidden costs that may arise. Import duties, taxes, and additional warranty or support service charges can add up, significantly reducing the perceived savings. By opting for Siemens and its authorised partners, you can ensure transparent pricing, avoiding unexpected costs and making better-informed purchasing decisions.

Business Relationship Risks

Business Relationship Risks

The grey market may seem like an attractive, low-cost option at first glance, but when considering the long-term impact, authorised partners offer significant advantages. These include better “total cost of ownership,” stronger “brand reputation,” improved customer service, and reduced risks. Choosing authorised channels ensures a more sustainable business relationship and supports long-term value creation.

Legal Implications

Legal Implications

Purchasing from the grey market raises concerns about regulatory compliance and legal consequences. Counterfeit products often fail to meet required standards, making them unsafe or even illegal. Additionally, engaging with grey market products can infringe intellectual property rights, leading to potential legal and financial repercussions. Choosing authorised purchase channels protects against these risks.

FAQ about Grey Market products

Grey market goods, in many cases, are original products initially placed on the market by the brand owner. Nevertheless, in some instances, counterfeit items may be deceitfully marketed as genuine. How do these products become “grey market” items? Possible origins of products that are not purchased directly from Siemens or an authorised partner could be:
• Warehouse liquidations / clean-ups.
• Bankruptcy / claims administrator (e.g. following a
fire, water damage or other events).
• Internet trade (import / export).

Currently there are large quantities of ageing and obsolete stock on the marketplace. During the COVID-19 pandemic, many companies globally built up their stock. These stocks are now increasingly flowing into the international market and often offered below the purchase price to generate cash flow.
  • In contrast to original products purchased over the Siemens sales network, unusually high discounts are only possible in the grey market for repaired, used, obsolete or individual products that no longer have the original packaging. It has been proven in the past that counterfeit products are also offered there.
  • The scope of the warranty is reduced, e.g. shortened warranty period with reduced scope (e.g. exclusion of replacement delivery).
  • Grey market product offers are regularly from abroad, and they generally will only be delivered when prepaid.
  • Brand-new products, in larger quantities and in their original factory packaging are only available via standard commercial channels and are not available from grey market channels’ stock. This statement has been substantiated in the past through numerous test purchases.
  • When purchasing products, it is important to be aware of the risks associated with unauthorised sources and counterfeit products. Purchasing Siemens products from unauthorised sources can expose you and your customers to serious risks.

Grey market products often appear on online trading platforms or via email cold calling (also known as spamming). Depending on the origin, however, the buyer generally cannot recognise beyond doubt whether they are going to receive standard technical support and full statutory warranty for the products purchased, or whether they are buying used, refurbished, out-of-date, damaged, non-functional, or even, potentially counterfeit products. For products purchased from the grey market, Siemens does not provide full statutory warranty or standard technical support.

Therefore, products obtained from unauthorised sources may lack coverage under the manufacturer’s warranty. This implies that you may not be eligible for free repairs or replacements if the product encounters defects or
malfunctions. In contrast, Siemens Australia & New Zealand take pride in offering a complimentary 3-year extended warranty exclusively for products acquired through our authorised channels. Opting to buy from Siemens and our trusted partners ensures the highest quality and provides you with the added security of extensive warranty coverage.

To minimise safety and security risks to your supply chain, it’s important to verify your sources. Siemens offers a Partner Network that source their products directly from Siemens or an authorised distributor. To find a Certified Solution Partner that fits your companies needs, you can use the Siemens Partner Finder. Alternatively, you can find a list of our Authorised Distributors from our Siemens AUNZ Partner website.

If you come across any indications that you or one of your customers received a grey market product, please contact your regional account manager immediately. Please have your product serial number ready. Siemens has been a trusted brand in Australia for over 150 years, establishing a legacy of reliability, quality, and innovation. Our partners are also experts in their fields. To safeguard your purchases and ensure product authenticity, buying directly from Siemens and our authorised partners is imperative to avoid risks.

Buying Siemens products direct from APS Industrial safeguards your purchases and ensures product authenticity. This also provides you with the following:

  • Customer Service
  • Cost reduction
  • Business relationship
  • Legal & compliance
  • Increased productivity

SIMOCODE

For processing applications, SIMOCODE motor management system delivers robust functionality for demanding, continuous operations. Ideal for switchboard builders, SIMOCODE provides advanced intelligent motor protection and control complete with in-depth diagnostics, and flexible programming via Siemens’ TIA Portal, enabling predictive maintenance and reducing operational risks. Its integrated safety and protection functions make it indispensable for complex industrial setups requiring seamless control and monitoring.

SIRIUS 3RC7

For original equipment manufacturers in food, beverage, discrete, and general manufacturing, the SIRIUS 3RC7 Intelligent Link Module offers a convenient way to add advanced protection to your motor starting. Designed to work together with your existing Siemens Contactor and Circuit Breaker to form a complete solution (SIRIUS 3RA8 Intelligent Load Feeder), the 3RC7 module provides a simple connection to the automation system. Its easy setup and data transparency are perfect for applications needing reliable protection and control.

SIRIUS eStarter

For system integrators seeking future-ready motor starting, the Siemens e-Starter with semiconductor technology provides a high-speed, wear-free option. This e-Starter is built for high-efficiency applications prone to short circuits and frequent start-stop cycles, with ultra-fast short-circuit protection that’s 1,000 times faster than conventional methods. Smart Start technology reduces inrush currents, minimising stress on both the electrical system and equipment while offering sustainable performance aligned with Siemens’ EcoTech standards.

Did you know:

Siemens Australia & New Zealand take pride in offering a complimentary 3-year extended warranty exclusively for products acquired through authorised channels.