CAPTIVE IMPORT Meaning and
Definition
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Captive import refers to a business practice where a company or manufacturer imports products for sale in a specific market under its own brand name or label. The term "captive" implies that the importing company has exclusive control over the distribution and marketing of the imported products in the target market.
In a captive import arrangement, the manufacturer may have a production facility in a different country and imports the products from that facility rather than manufacturing them locally. This strategy allows the importing company to take advantage of lower production costs, specialized expertise, or other advantages offered by the foreign production facility.
Captive imports are often used by companies to fill a gap in their product portfolio or to offer products that are not available or in limited supply domestically. By importing products under their own brand, companies can maintain control over the quality, pricing, and distribution of these products.
Captive imports can be found in various industries, such as automotive, electronics, consumer goods, and even food and beverage. They are commonly used by companies to expand their product offerings, enter new markets, or enhance their competitiveness by offering unique or specialized products.
Overall, captive import is a business practice where a company imports products from a foreign subsidiary or manufacturer under its own brand name to gain control over the distribution and marketing of those products in a specific market.
Etymology of CAPTIVE IMPORT
The term "captive import" is a type of automotive industry jargon that emerged in the United States in the 1960s.
The word "captive" refers to an import brand that was owned or controlled by one of the domestic automakers in the US. In this context, "captive" indicates that the import brand was under the control or captive of a specific manufacturer.
The word "import" simply refers to a product that is manufactured in a different country and is brought into the domestic market for sale.
Therefore, the term "captive import" refers to a situation where a domestic automaker brings in a foreign-branded vehicle and sells it under their own brand name. It is a way for the domestic manufacturer to diversify their product line or offer customers a wider range of vehicle options without having to directly manufacture those vehicles themselves.
